The role of Terna
Terna owns and operates Italy’s high- and very-high-voltage National Transmission Grid (NTG), one of the most modern and technologically advanced in Europe. The Group acts as an enabler of the electricity system in the context of the twin energy and digital transition towards environmentally sustainable sources, ensuring a secure and efficient supply for households and businesses.
Total managed power lines (380 kV) and interconnections
Terna, as the TSO (Transmission System Operator), carries out the activities of transmission and electricity dispatching.
This is a complex task, requiring an independent central coordinator capable of having an overall view of a high number of actors involved in both production and consumption.
Terna therefore plays a fundamental role in serving the country, as set out in the Group’s Purpose, Mission and Vision. Indeed, Terna:
• constantly ensures that the national electricity system is stable, secure, sustainable, resilient, efficient, and accessible, while maintaining high standards of service quality;
• drives the complex energy transition towards a new decarbonised model: a transition that is also fair and inclusive, taking into account environmental considerations, technological innovation and also social aspects;
• works to promote Italy’s energy independence: the growing integration of renewable sources into the national electricity grid will reduce the country’s dependence on foreign sources of supply, a crucial factor in an increasingly uncertain global geopolitical context;
• helps reduce price volatility for end users through the greatest possible integration of renewables and the increasingly efficient management of energy flows.
The National Transmission Grid is the main enabling factor in achieving the challenging decarbonisation targets set at European and national level, which can only be met through greater electrification of consumption by households and businesses. The investment plan, the most significant in the Group’s history, outlines the way Terna intends to address these challenges.
This is a complex task, requiring an independent central coordinator capable of having an overall view of a high number of actors involved in both production and consumption.
Terna therefore plays a fundamental role in serving the country, as set out in the Group’s Purpose, Mission and Vision. Indeed, Terna:
• constantly ensures that the national electricity system is stable, secure, sustainable, resilient, efficient, and accessible, while maintaining high standards of service quality;
• drives the complex energy transition towards a new decarbonised model: a transition that is also fair and inclusive, taking into account environmental considerations, technological innovation and also social aspects;
• works to promote Italy’s energy independence: the growing integration of renewable sources into the national electricity grid will reduce the country’s dependence on foreign sources of supply, a crucial factor in an increasingly uncertain global geopolitical context;
• helps reduce price volatility for end users through the greatest possible integration of renewables and the increasingly efficient management of energy flows.
The National Transmission Grid is the main enabling factor in achieving the challenging decarbonisation targets set at European and national level, which can only be met through greater electrification of consumption by households and businesses. The investment plan, the most significant in the Group’s history, outlines the way Terna intends to address these challenges.
The challenges of the energy transition for the electricity system
From the standpoint of the electricity system, and in particular of the transmission activities managed by Terna, injecting new “renewable lifeblood” into the grid requires a planning, authorisation and investment implementation effort unprecedented in Italy in recent decades, also due to the intrinsic characteristics of wind and solar sources. Indeed, these sources:
• are not programmable - the intermittency of intermittency of wind power makes dispatching more difficult;
• are concentrated in Southern Italy, while demand is higher in the North.
This translates into major challenges for the TSO, which must maintain the current high levels of quality of electricity service, while avoiding an excessive increase in costs for citizens and businesses.
To integrate growing volumes of generation from Non-Programmable Renewable Sources (NRES) in place of fossil fuel generation, it will therefore be necessary to develop storage capacity and grid infrastructure, managed in an increasingly digital and intelligent manner.
Another challenge the electricity system of the future must address concerns the increasing frequency and intensity of extreme natural and weather related events. This condition, together with the growing intensity of potential cyber threats, requires investment and constant monitoring to ensure grid resilience.
• are not programmable - the intermittency of intermittency of wind power makes dispatching more difficult;
• are concentrated in Southern Italy, while demand is higher in the North.
This translates into major challenges for the TSO, which must maintain the current high levels of quality of electricity service, while avoiding an excessive increase in costs for citizens and businesses.
To integrate growing volumes of generation from Non-Programmable Renewable Sources (NRES) in place of fossil fuel generation, it will therefore be necessary to develop storage capacity and grid infrastructure, managed in an increasingly digital and intelligent manner.
Another challenge the electricity system of the future must address concerns the increasing frequency and intensity of extreme natural and weather related events. This condition, together with the growing intensity of potential cyber threats, requires investment and constant monitoring to ensure grid resilience.
Sustainability, an integral part of Terna’s strategy
Sustainability lies at the heart of Terna’s strategy; accordingly, the Group considers energy equity to be of fundamental importance and also places the human dimension at the centre. Terna constantly engages all parties involved in the transition - institutions, civil society and trade associations - through partnerships, forums for dialogue and listening initiatives, and it strives to reduce inequalities and prevent new forms of energy poverty.
Confirming the crucial role of sustainability in pursuing a transition that is also just and inclusive, in March 2024 the 2024-2028 Sustainability Plan was fully integrated into the Industrial Plan. Sustainability is inherent in Terna’s very nature (Green by Nature), but it also represents the way in which Terna chooses to carry out its activities (Social by Purpose). The importance of social sustainability is also evidenced by the establishment of Fondazione Terna, fully operational since January 2025, which has launched initiatives focused on combating absolute, energy and educational poverty.
For Terna, the awareness of playing a fundamental role in the energy transition goes hand in hand with the intention of further strengthening its environmental strategy by adopting a Science Based Target (SBT), namely a target for reducing its CO2 emissions based on measuring the existing situation, designing concrete actions and obtaining validation from a third party. Terna has thus committed to cutting its CO2 emissions by 46% by 2030 compared with 2019. In addition, it launched activities for the adoption of a new Science Based Target for Nature, consistent with the Group’s commitment to protecting ecosystems and biodiversity.
Lastly, implementation of Terna’s strategy cannot do without new technologies and digitalisation, which are essential to increasing the security, resilience and flexibility of the national transmission infrastructure.
Confirming the crucial role of sustainability in pursuing a transition that is also just and inclusive, in March 2024 the 2024-2028 Sustainability Plan was fully integrated into the Industrial Plan. Sustainability is inherent in Terna’s very nature (Green by Nature), but it also represents the way in which Terna chooses to carry out its activities (Social by Purpose). The importance of social sustainability is also evidenced by the establishment of Fondazione Terna, fully operational since January 2025, which has launched initiatives focused on combating absolute, energy and educational poverty.
For Terna, the awareness of playing a fundamental role in the energy transition goes hand in hand with the intention of further strengthening its environmental strategy by adopting a Science Based Target (SBT), namely a target for reducing its CO2 emissions based on measuring the existing situation, designing concrete actions and obtaining validation from a third party. Terna has thus committed to cutting its CO2 emissions by 46% by 2030 compared with 2019. In addition, it launched activities for the adoption of a new Science Based Target for Nature, consistent with the Group’s commitment to protecting ecosystems and biodiversity.
Lastly, implementation of Terna’s strategy cannot do without new technologies and digitalisation, which are essential to increasing the security, resilience and flexibility of the national transmission infrastructure.
Socio-economic impacts of Terna’s activities
The National electricity Transmission Grid plays a central role in the security and efficiency of the electricity system, with tangible benefits for Italy’s competitiveness. Its development, together with the integration of renewable sources and storage systems, is a key lever for improving energy security and reducing energy costs. Evidence of the macroeconomic impact of Terna’s investments in Italy on the value of production and on GDP is set out in the study “Energy security and independence: the transmission grid as a lever for Italy’s competitiveness”6. According to the analysis, every euro invested in the transmission grid generates an impact of €2.98 on the value of production and €1.31 on GDP. Overall, therefore, the investments planned in Terna’s five-year Industrial Plan translate into €35 billion in value of production and €16.2 billion in GDP, supporting the creation of almost 40,000 average annual jobs. In addition, the Italian electricity system is characterised by a high level of efficiency in planning investments to integrate new renewable generation: the unit cost per GW is around half the levels recorded in Germany, France and the United Kingdom. In practice, therefore, every €1 billion invested by Terna enables more renewables than other TSOs. Investment efficiency is measured by comparing planned investments with the additional renewable capacity that electricity systems must integrate over the same time horizon. The higher return on investment makes it possible to accelerate RES integration and reduce congestion charges and dispatching service costs in the medium term.
