# 2025 Digital Report - Terna > Find out our role and our results in the digital edition of Terna’s 2025 Integrated Report. Digital edition of Terna's 2025 Integrated Report: a single-page overview of the year with in-depth pages, plus the full report and its attachments as PDF. Terna operates Italy's national electricity transmission grid. ## Introducing Terna https://www.terna-reports.it/2025/2025/en#introducing-terna Introducing Terna Mission Terna is investing in Italy’s development We guarantee energy security and balance electricity supply and demand 24 hours a day, ensuring that the system is reliable, efficient and accessible to all. We invest and innovate every day in the development of an electricity grid capable of integrating the energy produced from renewable sources, improving links between the different areas of the country and strengthening cross-border interconnections, applying a sustainable approach that takes into account the needs of the communities and people we work with. Purpose We are behind the energy you use every day We are responsible for guaranteeing the continuity of power supply, essential in making sure that electricity reaches Italian homes and businesses at all times. We provide everyone with equal access to electricity and are working to provide clean energy for future generations. Vision We care about the future of energy We are committed to building a future powered by clean energy, enabling new forms of consumption and production increasingly based on renewable sources.This will allow us to achieve the goal of delivering an energy transition that is fair and inclusive, whilst also lowering costs. Thanks to our overall vision of the electricity system and new digital technologies, we are leading the country’s drive to get to net zero by 2050, in line with European climate goals. ## Overview of 2025 https://www.terna-reports.it/2025/2025/en#overview-of-2025 Overview of 2025 Economic financial Operational Environmental Social Governance ## The value creation strategy https://www.terna-reports.it/2025/2025/en#the-value-creation-strategy Terna’s process for creating value over time is shaped by a form of governance that targets sustainable success through the definition of a solid medium- to long-term strategy, based on the 2025 Development Plan and the 2024-2028 Industrial Plan Update, with the aim of delivering an energy and digital transition that takes into account the impact on society. ## Financial data https://www.terna-reports.it/2025/2025/en#financial-data Terna has identified the following indicators as the most representative of its economic and financial performance: Revenues, EBITDA, Operating results, Group Net Profit, Net Debt and Investments. ## Letter to stakeholders https://www.terna-reports.it/2025/2025/en/letter-to-stakeholders «In recent years, the energy system has undergone a profound transformation. Growing electricity demand, the evolution of the energy mix and geopolitical tensions have brought security of supply and market stability back to the centre of debate. In this context, electricity infrastructure is becoming increasingly central to integrating renewable sources, strengthening countries’ energy independence and supporting the competitiveness of economic systems». Dear shareholders and stakeholders, in recent years, the energy system has undergone a profound transformation. Growing electricity demand, the evolution of the energy mix and geopolitical tensions have brought security of supply and market stability back to the centre of debate. In this context, electricity infrastructure is becoming increasingly central to integrating renewable sources, strengthening countries’ energy independence and supporting the competitiveness of economic systems. During the same period, energy markets have experienced strong volatility. The geopolitical tensions of recent years have had a major impact on markets and commodity prices. Russia’s invasion of Ukraine in 2022 caused a sharp increase in gas prices in Europe, with peaks of over €300 per MWh in August 2022. Over the last two years, prices have since stabilised at around €40 per MWh in 2025. However, both prices and their volatility remain above pre-crisis levels (€10-15 per MWh), indicating that the market equilibrium is still fragile. The recent conflicts in the Middle East are creating difficulties in the supply of imported fuels, causing volatility and a sharp increase in energy prices. This situation shows that, alongside environmental and economic sustainability, the issues of energy security and energy independence are more important than ever. Europe, and Italy to a greater extent, are net importers of traditional fossil fuels. In this context, the main strategy for strengthening security and independence lies in the gradual replacement of energy generated from fossil fuels with energy produced from renewable sources. Renewable energy sources (RES), being local resources, make it possible to reduce the vulnerability of energy prices to international geopolitical pressures. Moreover, the widespread adoption of electricity as an energy carrier would also make it possible to decarbonise sectors that are typically based on conventional fossil fuels – such as transport and heating – while at the same time improving the efficiency of the energy system. In this scenario, Terna develops and ensures the evolution of the National Transmission Grid, contributing to the country’s energy independence and the security of the electricity system. The electricity system plays a fundamental strategic role in the energy transition process and Terna, as owner and operator of the National Transmission Grid, is a central player. The initiatives and investments envisaged in the 2024-2028 Industrial Plan update are essential to ensure the integration of renewable energy into the electricity system, as well as to facilitate the transmission of energy from production areas to consumption centres, while at the same time ensuring grid security and stability. Over the last twenty years, we have witnessed a structural change in the energy generation mix: the share of generation from RES in total domestic output has in fact tripled, rising from 17% to 48%. To date, the installed capacity of wind and solar plants in Italy exceeds 57 GW. Compared to the target set for the 2021-2025 period by the Decree on Suitable Areas of 21 June 2024, the target for new installed capacity has been exceeded by 1.6 GW. In addition, as of today, 22 GW of plants have already been contracted through mechanisms such as FER1, Agrivoltaics, RES X and Energy Release, and will progressively enter into operation over the coming years. The integration of energy generated from RES also makes it necessary to develop significant volumes of electricity storage at the same time. In 2025, Italy recorded almost 18 GWh of storage capacity. Over recent years, storage capacity in Italy has grown above all thanks to large utility-scale plants contracted through the Capacity Market mechanism. In September 2025, Terna held the first MACSE auction, the Mechanism for the Procurement of Electricity Storage Capacity created to ensure the development of storage capacity in a coordinated way with the growth of RES. 10 GWh of storage capacity was awarded, to be operational by 2028. The auction results highlighted strong interest, with bids more than four times higher than demand and a weighted average award price equal to around one third of the reserve premium. The Italian market is attractive to investors. Indeed, at the end of January 2026 there were more than 300 GW of connection requests from renewable generation plants, a figure six times higher than that required to achieve the NECP targets. Similar considerations also apply to storage plants. Added to these are almost 80 GW of connection requests from data centres, indirectly confirming confidence in the continuity and stability of the national electricity service, as well as in Terna’s ability to execute the investments needed to strengthen the grid. Managing such a high volume of connection requests requires constant cooperation between Terna and national and local institutions. In this context, the Bollette Decree-Law introduces a series of simplifications that send a positive signal for the future. These include the reform of connections for RES plants and the introduction of a dedicated authorisation process for data centres, which will make the overall connection process more streamlined. Turning to the implementation of grid infrastructure, in the course of 2025 more than 300 km of electrical connections were completed, designed with the utmost attention to low-environmental-impact solutions. Among the main works were those for the Milan Cortina 2026 Olympic and Paralympic Winter Games, with investment of around €300 million in Lombardy, Trentino-Alto Adige and Veneto. This work was completed in synergy with the Group’s industrial companies, such as the Brugg Cables Group for cable supply. Last year, the Paternò-Pantano-Priolo corridor in Sicily was also completed, helping to improve continuity of service and support the integration of renewable sources. Construction work also began on the Chiaramonte Gulfi-Ciminna electricity connection. In 2025, the authorisation process was also launched for the Sardinian Link, the new electricity connection between Northern and Southern Sardinia, and for the Central Link between Umbria and Tuscany. With the 2024-2028 Industrial Plan update, Terna has set the highest level of investment in the Group’s history, amounting to €17.7 billion overall, of which €2.7 billion was delivered in 2024 and €3.5 billion in 2025. By the end of 2025, around 92% of projects had been authorised and around 88% were covered by procurement contracts. Our investment plan is fully sustainable from a financial standpoint. This strength is recognised by investors and rating agencies. In 2025, in fact, both S&P Global Ratings and Moody’s upgraded Terna’s long-term rating, in the first case from “BBB+” to “A-” and, in the second, from “Baa2” to “Baa1”, both with a stable outlook. These are credit ratings we had not achieved for many years and they reflect Terna’s sound financial profile. Terna maintains its leadership position in sustainable finance, confirming this strategy, in 2025 the company successfully launched the first €750 million European Green Bond and, in January 2026, an €850 million perpetual hybrid European Green Bond, recording the lowest subordination premium ever. The year 2025 also marked 20 years of Terna as an independent company and, in February 2026, the company exceeded €20.5 billion in market capitalisation, one of the highest levels in the FTSE MIB, with the share price also rising above €10 per share, its highest level since the June 2004 listing. Terna’s Industrial Plan is based on the concept of the twin transition, energy and digital, because the former cannot exist without the support of the latter. To this end, the company has allocated €2.4 billion to innovation and digitalisation within its investment plan. The strengthening of monitoring systems and the development of predictive algorithms make it possible to optimise infrastructure maintenance and improve grid resilience to extreme weather events. Artificial intelligence is used, among other things, to support dispatching in forecasting national electricity demand, generation from renewable sources and the procurement needs for energy reserves. Artificial intelligence is also used in inspections carried out by helicopters and drones for asset monitoring, reducing by up to 60% the time required to process the data collected. The ongoing transformation of the system also requires high safety standards. To this end, as per 2024-2028 Industrial Plan update, Terna has planned €2.3 billion of investment to increase the security of the National Electricity System. Based on what is set out in the Security Plan, Terna is proceeding with the installation of a series of assets, such as synchronous compensators, STATCOMs, reactors and stabilising resistors, which are essential to ensuring regulation and stability of the electricity system. As regards innovation activities, within the framework of the open innovation model adopted by Terna, initiatives aimed at consolidating collaborations with national and international ecosystems are continuing. In 2025, three new innovation hubs, the Terna Innovation Zones, were inaugurated: in Tunis, in the Adriatic Region and in Turin. The TSO Innovation Alliance was also established, a collaboration among eight European operators whose main aim is to accelerate innovation for the energy transition. Terna Energy Solutions S.r.l. (hereinafter also TES), the Group company that manages the market activities and serves as the reference hub for technological, innovative and digital solutions in the energy and industrial fields, was reorganised in 2025 through the integration of diversified expertise along the energy value chain. TES’ new structure enables the Altenia Group – into which the system integrator activities for the energy transition have been transferred – to operate alongside the Tamini Group and the Brugg Cables Group. Over the medium to long term, Terna’s 2025 Development Plan provides for a total investment programme of over €23 billion in the period 2025-2034 (+10% compared to the previous Plan). By 2030, major strategic works are expected to be completed, such as the Tyrrhenian Link, for which the laying of the first submarine cables of the two links has been completed at a record depth of 2,150 metres, a world record for a high-voltage direct current submarine power line; the Adriatic Link (Marche-Abruzzo); SA.CO.I.3 (Sardinia, Corsica and Tuscany); and the Elmed interconnection, the energy bridge between Italy and Tunisia. By 2034, further infrastructure reinforcements are planned, including the Milan-Montalto HVDC link, the Foggia-Forlì Adriatic Backbone and the Central Link, the Montecorvino-Avellino-Benevento power line and GR.ITA.2 (the first phase of the project). Terna and IPTO signed an MoU in 2025 for the design and construction of the new electricity interconnection between Italy and Greece, which will complement the existing one, in operation since 2002. A recent independent study highlighted the efficiency of Terna’s investments: the cost per GW of renewables integrated into the grid is half that incurred by the TSOs of Germany, France and the United Kingdom. This difference highlights the efficiency of the Italian model in integrating new renewable capacity, making a competitive contribution to decarbonisation targets in the context of the energy transition. The National Transmission Grid is also a lever for the economic growth of the country system: according to research by OpenEconomics, every euro invested by Terna generates €1.31 of GDP, with positive effects along the entire supply chain and a significant impact above all in Southern Italy. The management of the Terna Group’s business is guided by sustainability values and by compliance with ESG (Environmental, Social, Governance) criteria, in line with the ten principles of the United Nations Global Compact, to which the company has adhered since 2009. In these terms, Terna further strengthens its profile through inclusion in some of the main national and international ESG indices, including the MIB ESG and Stoxx Global ESG Leaders indices. According to the eligibility criteria introduced by the European Taxonomy, around 100% of Terna’s investments are considered sustainable. Fondazione Terna, which began its activities in 2025 was created on the basis that the energy and digital transition has a strong social dimension. In this perspective, the Foundation has chosen to foster greater social inclusion through broader access to the world of energy, in terms of knowledge, awareness and new job opportunities. To ensure implementation of the Industrial Plan and to broaden the Group’s distinctive capabilities, more than 800 people were hired in 2025, including more than 350 graduates in STEM disciplines, with women accounting for 36% of these hires, excluding operational staff, demonstrating the company’s ability to attract talent. At the end of 2025, the Group’s total workforce stood at 7,117 people, including more than 2,300 professionals holding STEM qualifications and around 26% women, excluding operational staff. Since people are our Company’s most important asset, it is essential to nurture their potential by developing skills and active engagement in order to address ever more rapid change. Terna promotes activities and training paths aimed at the continuous enhancement of knowledge and skills, with the objective of developing flexibility and the ability to collaborate. Respect and merit are at the heart of Terna’s values. Respect means recognising equal dignity and opportunity for every person, promoting inclusion and responsibility; merit is the criterion guiding performance assessment and career paths. To this end, over the last two years, we have delivered more than 30,000 hours of training on inclusive language and overcoming stereotypes. Confirming the value and strength of the People strategy, we obtained the Top Employers 2026 certification. At the end of 2025, Terna presented the 2025-2027 Strategic Plan for the Inclusion of Persons with Disabilities, through which the Group confirms its intention to promote an accessible, fair and sustainable organisational model. Inclusive selection and leadership, pay equity, and training and awareness-raising to foster an ever more respectful working environment are at the centre of the 2024-2026 Strategic Plan for Gender Equality. The Company also helps bridge the gap between the demand for and supply of skills by strengthening the link between education, training and work. To this end, Terna has launched high-level academic programmes, such as the first edition of the second-level Master’s programme PoliTech Lab – in collaboration with the Polytechnics of Bari, Milan and Turin – and the fourth edition of the second-level Master’s programme within the Tyrrhenian Lab project, with the Universities of Cagliari, Palermo and Salerno. Thanks to the skills and motivation of our people, we enable the transformation of the energy system by strengthening and digitalising the National Transmission Grid with innovative tools that facilitate the integration of renewable energy. By combining execution capability, industrial vision and a sense of responsibility, Terna is making progress in delivering the objectives set for 2030 and contributing to the country’s progress. ## The role of Terna https://www.terna-reports.it/2025/2025/en/ternas-role 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. 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. ### 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. ### 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. ### 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. 6 https://www.terna.it/en/media/press-releases/detail/teha-terna-energy-security-independence-transmission-grid-lever-italy-competitiveness https://www.ambrosetti.eu/news/sicurezza-e-indipendenza-energetica-la-rete-di-trasmissione-come-leva-per-la-competitivita-dellitalia/ ## The Terna Group’s business https://www.terna-reports.it/2025/2025/en/business-model The Terna Group’s current business model is structured around two areas of business. The main one consists of Regulated Activities, in accordance with the obligations arising from the government concession. Terna has also developed and carries out a series of Non-Regulated Activities, always geared towards supporting the energy transition in line with its core business. The Terna Group’s current business model is structured around two areas of business. The main one consists of Regulated Activities, in accordance with the obligations arising from the government concession. Terna, owner and operator of the high and very-high-voltage National Transmission Grid (NTG), therefore performs a public service role to ensure the country’s electricity supply. It operates under a monopoly regime, in accordance with the rules laid down by the Regulatory Authority for Energy, Networks and the Environment (ARERA) and in implementation of the guidelines issued by the Ministry of Economic Development. More specifically, the Group’s regulated activities are divided into: - Transmission: Terna is Italy’s Transmission System Operator (TSO). It manages NTG planning, development and maintenance activities. - Dispatching: as System Operator, Terna ensures all the activities necessary to maintain the balance between electricity demand and supply in Italy, 365 days a year, 24 hours a day. Terna has also developed and carries out a series of Non-Regulated Activities, always geared towards supporting the energy transition in line with its core business, making the Group’s expertise and experience in the energy sector available to businesses and commercial and industrial customers. In this capacity, it offers a wide range of high value-added technological and innovative solutions. ### Regulated Activities: electricity transmission and dispatching Within the electricity system value chain (generation, transmission, distribution and sale of electricity), Terna occupies the central segment through its transmission and dispatching activities. As a Transmission System Operator (TSO), Terna not only has to design a grid capable of dealing with progressive decarbonisation and the ever-growing integration of renewable sources (Transmission Operator), but also ensure that, moment by moment, consumer demand for energy is constantly balanced with production, through dispatching (System Operator). Terna has the key and delicate role of guaranteeing this balance through a high-technology system, using a specific market, in which it makes daily purchases of the services necessary to constantly ensure the continuity and security of electricity supply. In addition to strengthening the domestic grid, Terna is required to develop interconnection capacity with other countries’ electricity systems. Indeed, Italy is electrically connected with France, Switzerland, Austria, Slovenia, Montenegro, Greece, and Malta via 30 interconnecting lines. ### National Transmission Grid Terna operates Italy’s high and very-high-voltage National Transmission Grid (NTG), one of the most modern and technologically advanced in Europe. This operational process is divided into three areas: • the planning of development measures for the National electricity Grid; • the construction of works; • the maintenance of electricity infrastructure. The sustainability approach developed by Terna takes the form of transparent management of the Group’s social and relational capital, involving all stakeholders affected by development measures, with a view to fostering ever greater awareness of the importance of the construction and management of electricity infrastructure. ### Integration of renewable sources into the National electricity Grid The management of high-voltage connection requests submitted by developers of renewable energy projects enables Terna to maintain an overall view of the current situation and future scenarios. As the TSO, Terna is able to monitor the system’s ability and adequacy to meet electricity demand while ensuring compliance with security and quality of service requirements. Terna has an obligation to connect all potential users requesting connection to the grid, identifying connection solutions in terms of criteria that guarantee the continuity and secure operation of the grid to which an applicant’s new plant will be connected. Terna is responsible for high and very high voltage connections to the NTG of plants with a capacity of 10 MW or more. As at 31 December 2025, Terna had received applications for connection to the National Transmission Grid (NTG) for 329 GW of new renewable capacity, of which 146.2 GW related to solar and 180.2 GW to wind power (onshore and offshore). These can be monitored and consulted through the Econnextion7 digital platform, launched by Terna in 2023 in collaboration with the Ministry of the Environment and Energy Security, which centralises information on high-voltage connection applications for renewable energy plants, storage systems and end users in Italy. At 31 December 2025, Terna was handling around 7,800 applications for connection to the NTG in relation to future or existing initiatives. As regards Renewable Energy Source (RES) plants, there were over 5,900 connection applications to the NTG with a General Minimum Technical Solution (STMG), of which 5,268 had an accepted solution, corresponding to approximately 290 GW. The data show that: • the South and the Islands cover numerically 77% of the renewable source applications, for an equivalent power of more than 79% of the total; • a sharp increase was registered in applications for the connection of new distribution plants and for upgrades to existing plants by local distributors, with the aim of harnessing production from renewable sources; • 83 connection contracts were signed in 2025 (representing total capacity of approximately 3 GW), relating to the construction of new RES plants. Considering all renewable sources, according to Terna’s data, the increase in capacity in Italy as at 31 December 2025 amounted to approximately 7.2 GW. As at 31 December 2025, Italy had over 83 GW of installed capacity from renewable sources, broken down by source as follows: ### Connections ### Dispatching of electricity Except in specific and limited circumstances, electricity cannot be stored. Therefore, it is necessary to produce, moment by moment, the amount of energy required by all consumers (households and companies) and to manage its transmission so that supply and demand are always balanced, thus guaranteeing the continuity and security of the electricity supply. Terna manages these energy flows through the grid via dispatching activity, which comprise: • the scheduling of network unavailability10 and generation plants over different time horizons; • the forecasting of national electricity demand; • the consistency check between this demand and the generation schedule, as determined by the outcome of the liberalised electricity market (Electricity Market and over-the-Counter contracts); • the procurement of dispatching resources; • the verification of power flows on all grid lines. This area of operation also includes management of the Dispatching Services Market (MSD), through which the resources for dispatching services are procured. In fact, real-time control of the National Electricity System is ensured by the National Control Centre, the nerve centre of the Italian National Electricity System, which was renovated in 2024, more than 60 years after its establishment (1963). The National Control Centre: • coordinates the other control centres around the country; • monitors the electricity system; • dispatches electricity, intervening through instructions to producers and remote Management Centres, in order to modify supply and capacity on the grid; • to avoid the risk of prolonged power outages, it may also intervene in an emergency to reduce demand. ### Non-Regulated Activities: solutions for the energy market The Terna Group’s Non-Regulated Activities are developed in close alignment with its core business. They consist of solutions and services designed to enable the energy transition, through which the Group makes its expertise in the design, engineering, operation and maintenance of plants available to industrial and commercial customers through complex, innovative and digital solutions in the energy sector. These activities are structured into four macro-business areas, the first three of which fall within the scope of Terna Energy Solutions S.r.l.: 7 https://dati.terna.it/en/econnextion#renewable-sources. 8 The different areas of the country include the following regions: North: Valle d’Aosta, Piedmont, Liguria, Lombardy, Veneto, Trentino-Alto Adige, Friuli-Venezia Giulia, Emilia-Romagna, Tuscany. Centre: Marche, Umbria, Lazio, Abruzzo, Molise. South: Campania, Puglia, Basilicata, Calabria. 9 Project proponents are developers and operators that submit connection initiatives to the National Transmission Grid. These include, in particular, developers of electricity generation plants, mainly from renewable sources; developers of storage systems; and end users requesting connection to the transmission grid. 10 Network unavailability refers to the periods during which one or more elements of the electricity grid (e.g. lines, substations, etc.) are not usable, either wholly or partially, for operation of the system. ## The 2030 goals and Terna’s contribution https://www.terna-reports.it/2025/2025/en/the-2030-goals-and-ternas-contribution A sustainable and digital grid to address the challenges of the transition. ### A sustainable and digital grid to address the challenges of the transition The development policies of the national energy system are guided by the National Integrated Energy and Climate Plan (NECP) of July 2024, whose 2030 targets outline a profound transformation of the national electricity system, based on the large-scale integration of renewable sources, the electrification of consumption and the strengthening of system security and resilience. In this context, Terna’s strategy is aimed at ensuring grid adequacy and reliability through infrastructure planning consistent with the NECP scenarios, enabling the energy transition and the security of the national system. Terna contributes to the achievement of national targets through two areas of direct intervention: the development of the National Transmission Grid and market design. Terna’s 2025 Development Plan plays a central role in achieving the energy transition targets of the national electricity system, through investments of more than €23 billion by 2034 in strategic infrastructure capable of substantially transforming the transmission capacity and reliability of the national electricity grid. Below are the main figures of the Plan and the expected benefits. In line and in coordination with the Development Plan, the Plan for the Improvement of Defence Systems for the Security of the National Electricity System (the so-called Security Plan), drawn up annually by Terna and approved by the Ministry of the Environment and Energy Security, is the four-year programme that sets out the initiatives designed to ensure the security of the electricity system by preventing and/or reducing the consequences of grid disruptions. The 2025 Security Plan strengthens its investment programme by providing €2.3 billion by 2028. The Development Plan and the Security Plan are distinct but strongly interconnected plans, which contribute in a complementary way to the achievement of the national electricity system’s security, adequacy and resilience objectives. Alongside the infrastructural development of the grid, Terna also contributes to the transformation of the electricity system through the evolution of market design, which consists of defining a market structure that optimally integrates forward markets (RES auctions, MACSE storage auctions, capacity market) and spot markets, both for energy markets and for service markets. The objective is therefore to broaden the participation of new resources, currently not enabled, in the provision of flexibility services. ## The strategy https://www.terna-reports.it/2025/2025/en/the-strategy The 2025 Development Plan, the 2024-2028 Industrial Plan update and the 2024-2028 Sustainability Plan update. ### 2025 Development Plan With the 2025 Development Plan, Terna is further consolidating its role in serving the country for a sustainable and decarbonised future. The measures planned over the 2025-2034 ten-year horizon, with an investment programme of over €23 billion over the 2025-2034 period (up 10% compared with the previous ten-year Plan) and an overall value, beyond the ten-year horizon, of up to approximately €40 billion, are aimed at ensuring grid efficiency and resilience, sustainability, security and quality of service, as well as the integration of generation from renewable sources. The new Plan, following the previous 2023 edition, in respect of which the Regulatory Authority for Energy, Networks and the Environment (ARERA) issued a favourable opinion, Opinion 4/2025/I/eel of 14 January 2025, was transmitted to the Ministry of the Environment and Energy Security (MASE) on 27 January 2025, following approval by Terna’s Board of Directors on 21 January, in line with the provisions of Legislative Decree no. 93/2011, as amended by Law 120/202027. The Plan is consistent with the 2024 National Integrated Energy and Climate Plan (NECP), with the updated Terna-Snam scenarios (2024 Scenario Description Document, published in October 2024) and with the decarbonisation objectives, which impose new challenges on the electricity sector in line with the forecast of trends in energy needs and demand to be met. ### The needs of the System and the new Efficient Territorial Planning model The 2025 Development Plan responds to the country’s infrastructure needs, seeking to define development priorities, i.e. those projects that offer the greatest value for the system, facilitating the investments required for the energy transition. The investments envisaged in the 2025 Development Plan to enable the achievement of system benefits are grouped into the following main categories: NON-RES Connections, RES Connections, Large HVDC and Hypergrid Projects, Interconnections, VHV projects. These projects serve four main purposes: • develop enabling and innovative infrastructure to achieve the efficient target capacity to increase transit limits between market sections and maximise energy exchange; • resolve local congestion, ensuring safe operation within market areas through intra-zonal planning; • ensure the security of electricity systems and the integration of markets through interconnections, which allow flexible and balanced management of energy resources, facilitating exchanges between national grids; • manage the huge demand for connecting renewables through innovative solutions such as the definition of a new model – Efficient Territorial Planning (ETP) – with the aim of ensuring efficiency in the implementation of grid works enabling the integration of new resources. With regard to the latter need, the handling of a large number of connection requests, which have increased more and more in recent years, has caused administrative congestion and authorisation difficulties, as well as higher infrastructure costs due to the potential redundancy of grid works. The magnitude of the phenomenon calls for new variables to be considered in grid management in view of Terna’s regulatory obligation to connect all those who so request to the NTG. This was the reason for the introduction of the aforementioned new model of Efficient Territorial Planning, adopted by Terna to ensure efficiency in the construction of works enabling the connection of new resources, minimising costs for the system and the impact of infrastructure on the local region. This approach will bring benefits in terms of speeding up the authorisation of works and accelerating the commissioning of new plants, taking into account the smaller grid developments required. This will also lead to a reduction in complexity due to the simplification of the dynamics of the technical meetings, a reduction in overall system costs and a lower local impact of grid works. The ETP will enable integrated and efficient planning of RES Connections, Storage and End Users, including Data Centres, together with grid development measures, and will facilitate the connection process, information sharing and transparency with permitting authorities thanks to the TE.R.R.A. digital portal. ### Main projects in the Development Plan The projects of the Development Plan 2025 pursue the objective of creating synergy with the development works already planned (in the 2023 Development Plan and earlier) and with the existing infrastructure, in order to ensure maximum safety and flexibility of operation. The grid architecture as at 2034 and post-2034 takes into account the synergy between the Hypergrid project and the VHV grid projects already planned, with planned investments of more than €23 billion over the ten-year horizon of 2025-2034. Below are the main development projects planned for the years 2030, 2034 and post-2034. It is a very challenging Development Plan but at the same time characterised by solid elements: • the projects planned for 2030 have already been authorised and some of them are already under construction; • projects for 2034 have already started authorisation processes; • those planned for after 2034 are in the works budget conciliation phase. Confirming the benefits of projects that contribute most to achieving decarbonisation targets and the energy transition, the cost-benefit analysis also demonstrated their full sustainability through robust System Utility Indices (SUI) notwithstanding a challenging environment of rising costs. In the 2025 Development Plan for the National Transmission Grid, Terna aims to extract more value from existing assets through capital light. These projects based on innovative, low-capital-intensive instruments and solutions, which flank traditional infrastructure initiatives, make it possible to pursue benefits for the grid in terms of increased transit limits between Market Zones, mitigation of intra-zonal congestion, maximisation of RES production and reduction of curtailment, and maximisation and anticipation of the benefits expected from the entry into service of the individual works of the Development projects, including during the intermediate phases. With the Hypergrid project, Terna has planned a number of new electricity backbones to support the integration of renewable capacity from Southern Italy into the load centres of the North: this is a major modernisation programme involving existing power lines along the peninsula’s Tyrrhenian and Adriatic backbones and towards the islands, also including submarine connections. The project, together with all those planned for the VHV grid and the capital light works included in the 2025 Development Plan, in continuity with the 2023 Development Plan, will make it possible to achieve the EU decarbonisation targets, favouring the connection of the expected renewable energy plants. ### 2024-2028 Industrial Plan update In a context characterised by the growing complexity of the energy system, the 2024-2028 Industrial Plan update – Empowering Tomorrow – strengthens the role of the Terna Group as an enabler of the country’s energy transition. The Plan, approved by the Board of Directors on 25 March 2025, leaves the underlying strategic lines unchanged and reinforces the Twin Transition: Energy and Digital concept, deemed crucial for ensuring a fair and inclusive Just Transition for all stakeholders. The Industrial Plan update provides for total investments of €17.7 billion, in order to achieve the challenging decarbonisation targets set nationally by the National Integrated Energy and Climate Plan (NECP) and, at European level, by the Green Deal targets. The Terna Group’s development activities therefore continue to focus on two strategic lines: Regulated Activities in Italy and Non-Regulated Activities. Over the course of the Plan, Terna will maintain a sound capital structure, supported by robust cash generation, which will help sustain investment growth and ensure an attractive dividend policy. ### Regulated Activities in Italy Regulated Activities in Italy represent the core business of the Terna Group, with total investment of €16.6 billion, the highest ever (+7% compared with the previous 2024-2028 Industrial Plan), to develop and strengthen the National electricity Transmission Grid. With these investments, the Regulated Asset Base (RAB) will reach around €32 billion in 2028, with a CAGR of 9% over the Plan period. #### Development of the National electricity Transmission Grid (NTG) Investment in the development of the National electricity Transmission Grid amounts to €10.8 billion and is mainly related to: • the construction of high-voltage direct current lines, to resolve grid congestion, increase transmission capacity between the different market zones, fully integrate renewable sources and improve service quality; • the construction of submarine cable connections. The flagship project is the Tyrrhenian Link, the power line that will connect Sardinia, Sicily and Campania, helping to accelerate decisively the development of renewable sources and to improve electricity exchange capacity between the three regions. The other projects include the Adriatic Link, the submarine power line between the Marche and Abruzzo regions; SA.CO.I.3, the interconnector linking Sardinia with Corsica and Tuscany, Elmed, the Italy-Tunisia interconnector, and the 380 kV Chiaramonte Gulfi-Ciminna power line in Sicily. Further development of interconnections with foreign countries will also increase the reliability and security of the Italian electricity system, consolidating Italy’s role as an electricity hub for Europe and the Mediterranean area. #### Renewal and efficiency of NTG assets Investment of €3.6 billion is planned, compared with around €2.9 billion envisaged in the previous Plan, for the rationalisation of existing infrastructure and the replacement of obsolete components. These activities also include digitalisation measures in the transmission grid through the use of new data-driven technologies, the adoption of Artificial Intelligence-based solutions and the use of robotics. #### Security plan Approximately €2.3 billion, compared with around €1.7 billion envisaged in the previous Plan, will be allocated to the Security Plan, with measures aimed at strengthening and enhancing the technical and technological functions of the electricity system and improving grid resilience. In particular, investments are planned in machinery for system security, as well as in the strengthening of cyber security initiatives and the digitalisation of assets and processes. #### Execution capacity Terna stands out for its proven ability to manage projects throughout the entire execution process: from the authorisation phase and relations with local and national authorities, to the engineering, management, financial, organisational and decision-making capabilities that make it possible to complete these complex projects, including the procurement phase. These capabilities are reflected in the significant progress made in the execution of the main projects: as of December 2025, around 92% of the works had already been authorised and around 88% were already covered by supplier contracts (compared with around 90% and around 80%, respectively, envisaged in the 2024-2028 Industrial Plan update). During 2025, 38 measures for the development of the National electricity Transmission Grid, for a total amount of around €927 million, were authorised by the Ministry of the Environment and Energy Security and the competent regional departments. The main projects authorised in the year include: the rationalisation of the grid in Brianza Ovest, the new substation at Volpago (Treviso) and the electrification of the quays at the Port of La Spezia, the first project of its kind in Italy. Also included are the reorganisation of Rome’s South-West Quadrant, to improve the efficiency of the Capital’s grid, and the construction of the new substation at Perdasdefogu (Nuoro), to ensure greater resilience in an area subject to frequent snowfall. The data relates to pending processes at 31 December 2025, i.e., procedures formally initiated both at the Ministry of the Environment and Energy Security and at the Regions and Autonomous Provinces and not yet completed. It should be noted that the number of completed procedures disclosed on 18 December 2025 in the specific press release, https://www.terna.it/en/media/press-releases/detail/new-infrastructure-worth-800-euro-million-operational-2025, does not include two additional procedures completed by 31 December 2025. ### Non-Regulated Activities The Non-Regulated Activities will continue to generate new business opportunities through the development of innovative and digital technology solutions consistent with Terna’s institutional role. The markets of reference are undergoing rapid expansion, driven for the most part by trends linked to the energy transition: increased demand for renewable generation plants, the renewal of grids and the growth of new industrial sub-sectors such as data centres and large power consumers. The Group’s Non-Regulated Activities include the following business lines: Equipment; Energy Services; Connectivity; Interconnector. By leveraging the expertise developed in these areas and using strategic assets, these activities will seize market opportunities, contribute to the achievement of the energy transition creating value both for the Terna Group and for the country. The Plan includes a series of initiatives designed to fully exploit the portfolio of businesses, introducing optimisation measures to strengthen financial performance and consolidate market leadership. Non-Regulated Activities are expected to make a contribution to the Group’s EBITDA of approximately €730 million cumulatively over the Plan period, against a limited investment commitment and a low risk profile. For details of operating performance in 2025, please refer to the relevant paragraph in the section “The Terna Group’s operating performance”. ### Terna’s people Terna’s people, with their world-leading technical expertise, are a key asset in enabling the Group to achieve the challenging goals the Group has set itself. The People strategy, built on three fundamental pillars, i.e., empowerment, experience and excellence, aims to place people at the centre, promoting their development and wellbeing through empowerment and a mutual commitment to collective growth. Through its People strategy, Terna fosters a culture of excellence based on merit, respect, and the enhancement of the diversity and uniqueness of individuals. The central role of the Terna Group’s people is confirmed by the significant acceleration in job creation. In this regard, the Group has strengthened its commitment to attracting the best talent, setting itself the ambitious goal of growing the company by 1,400 people over the plan period. More than 800 hires were made in 2025. Attention to people, in line with many other initiatives, must also be reflected in their well-being. The Group strongly believes in management by objectives and supports flexibility and work-life balance. The data at 31 December 2024 have been restated to reflect the correct allocation by category, without changing the overall balance of workforce. The increase in the workforce at 31 December 2025 (up 697 employees compared to 31 December 2024) directly reflects the needs arising from the implementation of the challenging investment plan envisaged in the 2024-2028 Industrial Plan update, the acquisition of STE Energy S.r.l. in May 2025 and Rete 2 S.r.l. at the end of September 2025, which resulted in an increase of 140 and 19 employees, respectively, as well as the strengthening of the Group’s distinctive skills. ### Digitalisation and innovation in support of the transition Digitalisation and innovation are key pillars in managing the growing complexity of the electricity system and achieving the national energy transition targets. The Plan update plans to spend €2.4 billion for digital technology, amounting to approximately 15% of investments in Regulated Activities in Italy, in line with international forecasts and the ambitions of the main European TSOs. The digital plan aims to further consolidate the importance of digitalisation in supporting the Development Plan, with a series of ambitious initiatives throughout the value chain. These include: • engineering will introduce software to digitalise the planning of worksites (Building Information Modelling) and optimise the management of contracts, ensuring the on-time delivery of projects; • dispatching will renew station ICT architecture through the adoption of Substation Automation System (SAS) solutions and develop advanced network forecasting and optimisation models for the safe and economical operation of the National Electricity System; • asset management will maintain current quality standards by digitising the O&M process using technologies such as digital twin, Internet of Things (IoT) and predictive tools. Advanced digital solutions will therefore be used to constantly guarantee safety, drive innovation and improve worker efficiency. Terna strongly believes in the value of innovative ideas and therefore supports start-ups capable of transforming ambitious insights into concrete models and technological tools that can improve the management of the national electricity grid. A grid that, with the increasing integration of renewables, needs increasingly intelligent solutions to ensure stability and efficiency. Below are the four ambitions that guide every corporate innovation initiative aiming to have an increasing impact on the business through the adoption of Open Innovation approaches: The Open Innovation model is a strategic lever to support the evolution of the electricity system and promote a fair energy and digital transition. The open, collaborative approach fosters skills and knowledge, enhances the value of pilot projects and accelerates technological adoption. Terna also positions itself as an industrial validator, strengthening its presence and leadership in European and global ecosystems. Supporting Terna’s Open Innovation strategy is the Terna Ideas30 platform, a meeting space between internal creativity and the external talent of start-ups, researchers, innovative companies and solvers from around the world. Through challenges dedicated to energy-transition themes, the most promising proposals are turned into concrete solutions. Terna Innovation Zones (TIZs) are outposts and hubs designed to generate value for the electricity system of the future. The first centre was opened in 2024 in Silicon Valley, with the aim of establishing a direct presence in one of the world’s most dynamic innovation environments. The San Francisco Innovation Zone was developed together with the Italian Innovation Centre at INNOVIT, the Consulate General of Italy in San Francisco, and the partner Mind the Bridge. In 2025, Terna continued to expand its national and international network with three new strategic initiatives: on 29 January 2025, another Terna Innovation Zone was inaugurated in Tunis, an initiative closely linked to the Elmed infrastructure project; on 9 September 2025, the Adriatic Innovation Zone headquarters were inaugurated in Ascoli Piceno; and on 1 October 2025, the Terna Innovation Zone Turin was inaugurated, a hub that strengthens the Group’s presence in the main European innovation ecosystems. Among the strategic initiatives promoted within the Turin hub, the TSO Innovation Alliance stands out. Established in July 2025 through the signing of a Memorandum of Understanding (MoU), it brings together eight of Europe’s largest electricity grid operators to accelerate innovation in support of the energy transition. The common goal is to develop shared solutions to increase grid resilience and efficiency, especially in light of the effects of climate change. The alliance’s first initiative was an open challenge dedicated to the theme “Climate change and grid resilience”. The alliance will also promote annual programmes, open calls for start-ups and joint research and testing activities. With these new openings, Terna is consolidating an international network spanning the United States, Africa and Europe, strengthening its ability to identify cutting-edge technologies, create synergies between different ecosystems and actively contribute to building an increasingly sustainable, resilient and innovative electricity system. The Terna Innovation Zones are thus confirmed as central tools in the Group’s strategy, serving as meeting points for knowledge, technology and international collaboration. Through its Corporate Venture Capital vehicle, Terna Forward S.r.l., established in November 2022, the Terna Group supports promising start-ups through strategic investments, encouraging the development of technologies capable of improving the efficiency and resilience of electricity infrastructure. With an approach based on Open Innovation, Terna Forward S.r.l. not only finances the most disruptive initiatives, but also makes its expertise available to accompany them in their growth, contributing concretely to the transformation of the energy system. During 2025, in addition to the investments pursued indirectly through membership of and active participation in CDP Venture Capital’s Corporate Partners I fund, the Company completed three direct investments in start-ups: Eoliann S.r.l. società benefit, Hibot Corporation31 and Hypermeteo S.r.l. Taking these transactions together with the investments made in 2024 (Wesii S.r.l., Melaworks, D-Orbit and Unusuals World), as at 31 December 2025 the total direct investments made by Terna Forward S.r.l. amounted to approximately €7 million. Terna’s journey in the Twin Transition shows how innovation can become a driver of sustainability. Through these initiatives, the company actively engages in driving change with vision and determination. As at 31 December 2025, there were 85 titles, including patents, design models and copyrights (including obtained and deposited). ### Identification and assessment of Industrial Plan risks To evaluate the solidity and reliability of Terna’s Industrial Plan and respond to the needs of the Company’s key stakeholders, the Terna Group has adopted a methodology that integrates uncertainty assessment and quantification into the business planning process. To conduct this activity, the Administration, Finance and Control department uses a tool that assesses the degree to which the Group’s risk profile is compatible with its strategic goals. The identification and quantification of risks and opportunities (uncertainties) is applied to the Terna Group as a whole and requires the direct involvement of all the relevant departments in the form of specific interviews under a bottom-up approach. The process requires that, once uncertainties have been identified and quantified, they are aggregated using a proprietary Monte Carlo simulation model that, starting from the data collected, generates a large number of alternative scenarios based on likely developments in the variables underlying the Industrial Plan. The methodology thus enables the Company to estimate the overall volatility of the financial targets deriving from the occurrence of key risk events and opportunities and to assess the resilience of the Industrial Plan. ### 2024-2028 Sustainability Plan update The Terna Group’s strategy for the five-year period from 2024 to 2028, updated in 2025, is based on a unified vision of its role in serving the country and means that the Industrial Plan is fully integrated with the Sustainability Plan, with ESG objectives being given the same priority as industrial and financial objectives. This allows to Terna to guide both its day-to-day actions and its investments for the future: the Sustainability Plan, together with the Industrial Plan, are fundamental building blocks for the full implementation of the Group’s Mission, Vision and Purpose (see page 1). The two common threads running through both the Sustainability Plan and the Industrial Plan are linked to environmental and social considerations: • on the one hand, given its role as a TSO with a vital part to play in delivering the energy transition, thus leaving future generations with a carbon-free environment, sustainability is inherent in the very nature of Terna, making it “Green by Nature”; • on the other hand, Terna’s business activities are carried out within the framework of a solid structure of protections and safeguards aimed at the maximum protection of stakeholders’ rights and demands, with a constant commitment to listening to local communities. As a result, the Group is sustainable also by choice and therefore “Social by purpose”. Compared with the priority objective of the Industrial Plan, namely the delivery of the Energy and Digital Transition (Twin Transition), these two strands, i.e., Green by Nature and Social by Purpose, point to the need to take social impacts into account as well, in other words to raise the Group’s level of ambition and deliver a Just Transition. The Plan, which also takes into account the results of the Double Materiality Analysis (see page 186), is structured around four pillars, all serving the priority objective of a Just Transition. Each pillar is organised into strategic action areas, which in turn are broken down into activities and projects, with a series of qualitative and quantitative objectives supported by measurable short, medium and long-term targets: • Energy transition: this pillar focuses on the delivery of a transition to a new, more sustainable energy paradigm, based on the use of energy from renewable sources. In addition to a progressive reduction in the carbon footprint and in related CO2 emissions, there are also considerations on the security and resilience of the National Electricity System and, therefore, of the country’s production and social system; • Sustainable value chain: this pillar aims to establish a new, increasingly inclusive and sustainable value chain through the adoption of new development models that promote sustainable supply chain management, value creation for Terna’s people, transparency in customer relations and the development of circularity in business practices; • Shared value creation: the objective of this pillar is to strengthen the business model in terms of sustainability, understood as balancing profit, care for the environment and the consolidation of social license to operate, i.e., engagement with and support for the communities affected by Terna’s presence and activities. • Sustainable growth: this pillar aims to guarantee sustainable long-term growth through: - the focus of investments in innovation and digitalisation on the energy transition; - the development of an open innovation ecosystem; - the development of new businesses to support growth; - the strengthening of financing instruments capable of supporting the just transition. ### The process of defining the Sustainability Plan The process for defining the Sustainability Plan involves all company departments, which are called upon both to report on the previous year’s performance and to assess new objectives for the future on the basis of inputs arising from the external context and business developments. The latest update of the Plan took into account the requirements of the Corporate Sustainability Reporting Directive (CSRD), extending the scope of targets across the Plan period to the whole Group, in line with the consolidated scope required by the legislation. Topics identified as material under the new European Sustainability Reporting Standards (ESRS) were also included. The 2025 update also included objectives linked to the Corporate Sustainability Due Diligence Directive (CSDDD), ensuring an increasingly transparent and structured approach to reporting and managing sustainability impacts along the value chain. The mechanism for reviewing and updating the Plan includes: • first, discussion between the Sustainability function and the various company departments; • subsequently, review by the Board Committee “Sustainability, Governance and Scenarios”. Monitoring of the Plan is crucial to ensuring that the objectives set are achieved; accordingly, a specific system of procedures and safeguards has been adopted. In particular, an interdepartmental coordination group has been established, responsible for monitoring the Plan and maintaining a continuous exchange of information with the company structures that own the KPIs and the Plan targets, thereby ensuring constant updating and effective management of activities. The main KPIs set out in the Plan are then reported to the board committees on a periodic basis. In January 2026, a workshop dedicated to the Sustainability Plan was held, with the aim of strengthening shared understanding of its contents, implementation and monitoring methods, as well as encouraging discussion among the functions involved. More than one hundred employees from all company departments took part, through a mixed format, both in person and remotely. The workshop alternated framing sessions, contributions focused on indicators and monitoring methods, and group work sessions. Targets and results of the Plan linked to ESRS policy themes and actions are presented in the Consolidated Sustainability Statement. ### From strategy to 2025 results «Terna’s 2025 results confirm growth across all economic and financial indicators and an acceleration in the execution of the main projects, operating successfully in a particularly complex energy and geopolitical scenario. The improving economic and financial results, the progressive increase in investments and the progress in the construction of strategic grid infrastructure for the country demonstrate the strength of our industrial model and the credibility of our development path,» commented Giuseppina Di Foggia, Terna’s Chief Executive Officer and General Manager. 27 Art. 36.c.12 of Legislative Decree no. 93/2011, as amended by Law 120/2020, requires Terna to prepare a ten-year Development Plan for the national transmission grid every two years, submitting it for approval by the Ministry of the Environment and Energy Security, after consulting with the affected regional authorities and taking into account the views expressed by the Regulatory Authority for Energy, Networks and the Environment (ARERA). 28 This document is available at the following link: https://www.terna.it/en/electric-system/efficient-territorial-planning/national-electricity-transmission-grid-development-plan/scenarios. 29 ENTSOs (European Network of Transmission System Operators) are the organisations grouping the operators of energy transmission systems in Europe, respectively for electricity (ENTSO-E) and gas (ENTSO-G). 30 https://ternaideas.terna.it./ 31 The investment in Hibot Corporation was made through the JKISS (Japanese Keep It Simple Security) instrument, an agreement granting Terna Forward S.r.l. the right to future equity interests. ## The value creation process https://www.terna-reports.it/2025/2025/en/the-value-creation-process The 2025 Report on Operations illustrates the Terna Group’s ability to create value over time through a Sustainable business model. ### Terna’s value creation The 2025 Report on Operations illustrates the Terna Group’s ability to create value over time through a Sustainable business model based on the interaction between tangible and intangible capital available to the organisation. Its proper functioning is constantly monitored, measured and reported through specific financial, operational, social and environmental indicators. The Terna Group’s process for creating value over time32 is guided by Governance oriented towards sustainable success that aims to define and implement a clear medium- and long-term strategy. Based on the guidelines contained within the 2025 Development Plan and the 2024-2028 Industrial Plan update, this strategy aims to foster and realise an energy and digital transition that also takes into account social impacts (a so-called Just Transition). Crucial to the achievement of this strategic objective is the correct allocation of resources, undertaking investments that aim to enhance and improve the efficiency and resilience of the National Transmission Grid (NTG) while ensuring an adequate assessment and management of economic and financial risks, including those of an ESG nature connected to the business, and of the possible opportunities related to them. In presenting its business model and any updates, among other things the Terna Group takes into account the impacts, risks and opportunities associated with significant areas of activity that could potentially occur in its own operations or those related to the value chain, in order to make it more resilient and adaptable to changes in the external context. In line with the enabling factors of the 2024-2028 Industrial Plan update, the Terna Group’s business model is structured into two main distinct areas of activity (Regulated Activities and Non-Regulated Activities) that correspond to the core business (Electricity Transmission and Dispatching) and the complementary strand, respectively, that operates in the free market, with a new structure for the Terna Group’s market subsidiary that integrates diversified skills along the entire energy value chain for the design, engineering, operation and maintenance of solutions for the energy market. For an understanding of the Group’s business model in the year 2025 and the related costs and revenues associated with the business segments, please refer to Note C “Operating Segments” of the Consolidated financial statements. The capitals represent the essential resources at the Terna Group’s disposal to create and preserve value over time through their continual combination and interaction, both within the Company and with the outside world, including in the latter the legitimate needs and expectations of stakeholders. Capital plays a fundamental role within the value creation process since it is an input of the process, measurable from one year to the next (on the left side of the infographic), an output, to be understood as the set of products, services, by-products and waste of an organisation (in the upper right hand of the infographic), and an outcome, to be understood as the process’s ability to increase new resources and ensure their transformation in line with the objectives set by the Terna Group (on the right). As mentioned above, the capital that the Terna Group considers to create value and achieve its corporate objectives is both tangible – specifically, financial capital and infrastructure capital, represented by all of Terna’s assets – and intangible – specifically, intellectual capital, human capital and social and relational capital. Indeed, of all the intangibles intellectual capital is the most versatile, in fact its quality and robustness – and thus its capacity to create value – intersects with human capital, social capital and relational capital. To drive the Energy Transition, continuous analysis and proper management of big data are essential, with their integrity safeguarded by robust cyber security processes and a reliable electricity system. Its operation is further ensured by innovation and digitalisation processes, enabling the ability to tackle the challenges and uncertainties of an increasingly complex external environment. For further information in this regard, please refer to the section “The value creation strategy – The strategy – 2024-2028 Industrial Plan update”, the section “Governance information” in the Consolidated Sustainability Statement, and note 15 – Intangible assets to the Consolidated financial statements. With regard to human capital, its quality is crucial for the company’s growth, and consequently for fuelling the creation of value over time. People, with their basic education, skills developed and consolidated over time, managerial skills, motivation, loyalty and sense of belonging, are a central element of all company activities, and it is necessary to guarantee respect for their rights. For more information on this, see the “Social information” section of the Consolidated Sustainability Statement. Finally, with regard to social-relational social capital, its quality is dependent on the Group’s ability to listen to its stakeholders, considering their interests and analysing their compatibility with its business objectives. For more details on this, please refer to the section “General disclosures Relationship with stakeholders” of the Consolidated Sustainability Statement. The representation of the business model by capital allows the Terna Group to emphasise the outputs and related outcomes generated, highlighting the benefits that its stakeholders enjoy both from a financial point of view, in terms of economic returns linked to the investments made, and from the point of view of the social-relational and environmental impacts produced. In this regard, and more generally in making strategic and operational decisions, the Terna Group uses knowledge and data such as: • market data, such as analyses of demand and industry trends; • legislative requirements and industry standards; • internal company performance reports/operational KPIs. This shows that Terna’s business model, in addition to generating positive impacts for the Group, also contributes to creating shared value along the entire value chain, to which it devotes particular attention in measuring and assessing results in terms of current or expected benefits for the parties with which it interacts. ### The Terna Group’s value chain In order to provide as complete a representation as possible of the Group’s business model, set out below is the value chain mapping, which underwent further refinement and analysis during 2025. This mapping is divided into three macro-phases: upstream activities, operations carried out directly by the Group, and downstream activities. More specifically, the upstream activities of the value chain take account of the full set of interactions that the Terna Group has with its suppliers in order to ensure the proper conduct of operations. This phase includes both the procurement of materials and finished products, including the purchase of materials needed for the production processes of the subsidiaries and the purchase of finished products required for the Group’s other activities, and the procurement of labour from third-party companies for the Terna Group’s core activities, through works and service contracts, as well as for the subsidiaries. The main actors in this phase therefore include suppliers of materials and finished products and contractors. In particular, during the analyses carried out with reference to 2025, also involving the companies of the Tamini Group, the Brugg Cables Group and the Altenia Group, the stability of the main supply categories at strategic and economic level was confirmed. These categories continue to be concentrated mainly in industrial and infrastructure areas closely connected with the Group’s core business, such as the production of electrical and electronic components, the manufacture of machinery and equipment for the generation and transformation of electricity, and the construction of public utility works. These are complemented by supplies relating to the manufacture of structural metal products and the processing of base metals, including non-ferrous metals, as well as electrical installation activities. The specific nature of the Group’s business, which is characterised by the need to carry out maintenance work within short timeframes while ensuring the safety of the electricity system, means that supply contracts are predominantly for works, rather than supplies and services, and are mainly awarded to national operators or operators belonging to the European Union. The consolidated use of local suppliers also reduces the costs of transporting bulky and heavy materials and contributes to the reduction of its environmental impact33. The phase relating to own operations is in turn subdivided into: • Planning: identification of the structural modifications necessary for the transmission system to optimally fulfil its function of safely and economically transporting the energy produced from the production areas to the distribution and load centres. Also included are activities related to the design of photovoltaic systems based on customer requirements; • Development: grid development activities, and on the other hand the production of finished products required for grid development, such as transformers and high-voltage power cables and the construction and implementation of photovoltaic plants; • Maintenance: preventive and corrective maintenance of electrical lines and substations through regular inspections and repair work to prevent and solve malfunctions, and maintenance of photovoltaic installations through the repair and regeneration of photovoltaic inverters; • Provision of products and services: energy dispatching aimed at ensuring that the demand for electricity is always balanced by the energy produced by power plants through the coordination of production plants and the management of emergencies for the proper functioning of the electricity system. Also included in this sub-phase are consulting and the sale of finished products to customers, the installation and connection of photovoltaic systems to the electricity grid, and ordinary staff activities preparatory to the Group’s activities. The main actors in this phase include the Group’s workers. In addition to these, for the performance of its so-called “Regulated Activities” the Group has business relations with various categories of operators. These include dispatching users, i.e. manufacturers, wholesalers and customers. Another significant group consists of the distribution companies and private grid operators involved in the transmission and aggregation of measures required for the regulation of the dispatching service. Other business relations concern the parties requesting the connection of their plants to the National Transmission Grid, whether manufacturers or consumers, as well as so-called interruptible customers, i.e. those who, against payment of a fee, agree to temporarily interrupt their electricity supply to contribute to the security of the system. To these the Group offers specific contracts for the interruptibility service, aimed at mitigating the risk of widespread power blackouts and ensuring the stability of the electricity system. For the so-called “Non-Regulated Activities”, the Group’s business relations involve corporate customers of numerous companies belonging to a variety of sectors. For the design, manufacture, marketing and repair of transformers the Group serves players in the steel, metallurgical and electrochemical industries. The Group also works to ensure fast and reliable digital connections by supporting its partners in the development of smart solutions. This also includes the business of licensing the right to use optical fibre, within the scope of which the Group has contracts with several customers, mainly in the telecommunications sector. Finally, Terna develops energy solutions for companies that want to evaluate and integrate renewable energy plants, storage systems, and cogeneration solutions within their production process, also offering revamping/repowering solutions for photovoltaic plants. Finally, the activities carried out downstream in the value chain focus on: • Transport and logistics: activities related to the transport and logistics of finished products from production sites to end customers that are entrusted to specialised external partners able to guarantee product traceability; • Waste disposal and end-of-life products: waste transport and disposal, also relating to end-of-life management of assets and works. The main actors in this phase include third-party disposal companies. For more information about the methodology adopted by the Group with reference to the mapping of its value chain, please refer to the paragraph “Double Materiality” within the Consolidated Sustainability Statement. ### Benchmark SDGs For Terna, the United Nations’ Sustainable Development Goals (“SDGs”), forming the heart of the 2030 Agenda, provide a series of benchmark values, with SDGs 7 (Affordable and clean energy), 9 (Industry, innovation and infrastructure) and 13 (Climate action) fully aligned with the Company’s mission and strategic objective of achieving a Just Transition. SDG 17 (Partnership for the goals), meanwhile, provides further impetus for accelerating delivery of this objective. The SDGs also summarise the coherency of Terna’s value creation process with the aim of delivering sustainable success, the operating results of which are measured through specific indicators referred to throughout the Report on Operations. The changed socioeconomic environment, in recent years heavily impacted at global level by the effects of a series of events such as the high inflation and energy crisis caused by the conflicts in Ukraine and the Middle East, has, on the one hand, made it even more urgent to fully deliver the energy transition – also in terms of making Italy fully energy independent and secure – and, on the other, redefined it scope by including considerations relating to social equity and inclusion. In other words, it is necessary for the path to decarbonisation to coincide with a restart of economies based around inclusive and resilient models. This must also take into account social aspects, with priority given to the need to combat the progressive erosion of social cohesion and, more generally, respect for human rights. Taken as a whole, the SDGs are also a clear benchmark from an operational standpoint to which Terna refers in carrying out its activities. The SDG’s steer Terna towards achieving environmental objectives (e.g., efficient use of natural resources, respect for the environment, life under water, reduction of CO2 emissions, the reduction and recycling of waste), social objectives (quality education, respect of human rights and gender equality) and good governance objectives (fighting corruption and transparent reporting). In this sense, Terna also strives to achieve SDGs 4 (Quality education), 5 (Gender equality), 8 (Decent work and economic growth), 10 (Reduced inequalities), 11 (Sustainable cities and communities), 12 (Responsible consumption and production), 14 (Life under water), 15 (Life on land) and 16 (Peace, justice and strong institutions). The SDGs undoubtedly represent a cornerstone for Terna, being an integral part of the orientation of the company’s activities and cutting across various strategic areas within the Group’s policies. In fact, the SDGs are referred to in the Terna Group’s Integrated Management System Policy as well as the Sustainability Policy, through which the Group’s main sustainability commitments are outlined. Another policy that refers to the SDGs is the Corporate Giving Policy, whose guidelines and priorities are established in implementation of corporate strategies, sustainability goals, any new information from stakeholders, the positioning of the company, and the evaluation of activities and plans already implemented and the results achieved. Specifically, the Terna Group is primarily focused on issues related to the pursuit of Goals 4, 9 and 11. Finally, note that the Terna Group’s Audit Plan also takes into consideration issues related to the SDGs, which therefore permeate the governance model and internal control system in keeping with the Company’s mission and objectives. 32 Terna has adopted the principle-based framework proposed by the International Integrated Reporting Council (IIRC), the guiding principles of which are: (1) Strategic focus and future orientation, (2) Connectivity of information, (3) Stakeholder relationships, (4) Materiality, (5) Conciseness, (6) Reliability and completeness, and (7) Consistency and comparability. 33 For more details on the management of relations with suppliers, see the specific section within the paragraph “Governance information”. ## Sustainable finance https://www.terna-reports.it/2025/2025/en/sustainable-finance Terna is delivering on its commitment, made at the time of the bond issues, to report annually on its use of the proceeds and the environmental benefits resulting from the projects financed with those proceeds. Fully in line with Terna’s strategy, which aims to combine investment and sustainability to drive growth and value creation, it is Terna’s ambition to play a leading role in the sustainable finance market. This strategy was also followed in 2025. As at 31 December 2025, the senior green bonds issued by Terna under the two Euro Medium Term Notes (EMTN) programmes amounted to €3.75 billion, in addition to the three perpetual, subordinated hybrid green issues, respectively issued in February 2022 and April 2024 on a standalone basis, for a total amount of €1.85 billion, and in January 2026 under Terna’s EMTN Programme listed on the MOT, for a total nominal amount of €850 million. The latter issue is the first perpetual, subordinated hybrid European Green Bond issued by Terna. With regard to green bond debt, on 10 February 2025 Terna launched a new single-tranche green bond issue, again as part of the EMTN programme. The issue has a total nominal value of €750 million, a term of 7 years and matures on 17 February 2032. The bond was issued at a price of 99.975%, with a spread of 90 basis points above the midswap rate and has an annual coupon interest of 3.125%. On 15 July 2025, Terna launched the first European Green Bond, single tranche, as part of the €4,000,000,000 EMTN Programme, listed on the electronic bond market (MOT) managed by Borsa Italiana and approved by the Commissione Nazionale per le Società e la Borsa (CONSOB) in June 2025, for a total nominal amount of €750 million, a 6-year duration with a maturity date of 22 July 2031. The bond was issued at a price of 99.589%, with a spread of 70 basis points above the midswap rate and has an annual coupon interest of 3.00%. Green bond issues are used to finance or refinance Eligible Green Projects. These are projects producing environmental benefits that meet the criteria listed in the Green Bond Framework, updated by Terna in July 2025, and drafted in compliance with the Green Bond Principles updated by ICMA (International Capital Market Association) in June 2025, the requirements introduced by the new EU Regulation 2023/2631 (EU Green Bond Standard), and the European Union Taxonomy. In July 2025, Terna’s Green Bond Framework was assessed by S&P Global Ratings, acting as a Second Party Opinion provider, which assigned it an overall “Dark Green” rating, the highest level on S&P’s “Shades of Green” scale. In addition, in January 2026, Moody’s Ratings assigned the Green Bond Framework an overall “SQS1 Sustainability Quality Score (Excellent)”, the highest possible level under Moody’s methodology. Specifically, the net proceeds from the issues are used to finance: • projects that aim to increase renewable energy production – for example, infrastructure enabling renewable energy plants to be connected to the national grid or that allow for a larger volume of renewable energy to be injected into the grid; • projects designed to cut CO2 emissions by reducing grid losses – for example, infrastructure designed to boost the efficiency of the electricity transmission grid; • projects designed to ensure the quality, security and resilience of grid infrastructure. As of 31 December 2025, Terna can also rely on several ESG-linked Term Loans for a total of €2.5 billion, three ESG-linked Revolving Credit Facilities linked to sustainability indicators for a total of about €4.3 billion and a Euro Commercial Paper (ECP) programme of €2 billion for the issuance of short-term conventional or ESG notes. In particular, with regard to the ESG-linked Revolving Credit Facility, it should be noted that, on 21 March 2025, an amendment and restatement agreement was signed to refinance and increase to €1.8 billion the amount of a Revolving Credit Facility entered into in December 2021, originally amounting to €1.65 billion. As regards the ESG-linked Term Loans, on 20 November 2025 an ESG-linked Credit Facility Agreement was signed with BPER Banca for a total amount of €200 million and a five-year term; in addition, on 18 December 2025 a further ESG-linked Credit Facility Agreement was signed with UniCredit for a total amount of €300 million and a maximum term of five years. In line with Terna’s commitment to sustainability and social and environmental responsibility, the Share buyback programme to service the 2025-2029 Performance Share Plan was concluded in September, with a total outlay of about €9 million and the purchase of 1,060,499 treasury shares (representing about 0.053% of the share capital). The Programme provides a mechanism linked to the achievement of specific ESG targets by the Company. Terna’s leadership in sustainable finance is widely recognised in the market which, since 2018, has shown a strong appetite for the green bonds issued. In addition to its inclusion in the main ESG indices, from January 2021, Terna is the first Italian electric utility to join the Nasdaq Sustainable Bond Network, the sustainable finance platform operated by Nasdaq that brings together investors, issuers, investment banks and specialist organisations. Terna continues to be a member of the CFO Coalition for the SDGs, which is building on the work of the CFO Task Force for the SDGs, the initiative launched by the UN Global Compact at the end of 2019 to develop sustainable finance and of which Terna was one of the founding members. The Coalition aims to continue to promote sustainability, scale up its global community and follow the example set by the CFOs that founded the Taskforce. Further confirmation of the commitment to playing an active role in developing sustainable finance, Terna is taking part in the Corporate Forum for Sustainable Finance, a network of major European businesses committed to the development of sustainable finance as a means to promote a more sustainable and responsible society. Terna, both individually and as a member of the above Corporate Forum on Sustainable Finance, will continuously monitor developments in European legislation, with particular regard to the impact on sustainable finance. Finally, on 26 January 2026, Terna launched a perpetual, subordinated, hybrid, non-convertible, fixed-rate European Green Bond, placed with institutional investors, for a total nominal amount of €850 million. The bond is non-callable for 6 years and was issued at 100%, with a spread of 123 basis points over the Mid-Swap rate, implying a subordination premium of less than 60 basis points over a senior issue of equivalent maturity. It will pay a fixed annual coupon of 3.875%, corresponding to the effective rate of the transaction, up to, but excluding, the first reset date of 2 February 2032. From that date, if the bond has not been redeemed early, the hybrid instrument will bear annual interest at the five-year Euro Midswap rate plus an initial margin of 123 basis points, increased by an additional 25 basis points from 2 February 2037 and by a further 75 basis points from 2 February 2052. ## Presentation of the annual report 2025 https://www.terna-reports.it/2025/2025/en/presentation-of-the-annual-report-2025 The Terna Group’s 2025 Annual Report contains the Report on Operations, which by virtue of regulatory obligations in the area of reporting information of an ESG nature includes the Consolidated Sustainability Statement in a separate section, as well as the Consolidated Financial Statements, the Parent Company’s separate financial statements. The Terna Group’s 2025 Annual Report contains the Report on Operations, which by virtue of regulatory obligations introduced from 2024 in the area of reporting information of an ESG nature includes the Consolidated Sustainability Statement in a separate section, as well as the Consolidated financial statements, the Parent Company’s Separate financial statements, and aims to provide all stakeholders with a clear, complete and balanced account of the Group’s business and its value creation process. The Terna Group’s value creation process represents the phases of wealth creation and financial and sustainable benefits generated by the Company over time, through a sustainable business model based on the interaction between tangible and intangible capital available to the organisation. It is for this reason that the Terna Group has chosen to describe its value creation model by capital, in line with the International Integrated Reporting Council (IIRC) framework, which represent the essential resources that the Terna Group has at its disposal to create and preserve value over time through their continuous combinations and interactions, in order to also provide the outputs and related outcomes generated, highlighting the benefits that its stakeholders obtain both from a financial point of view and from the point of view of the social-relational and environmental impacts produced. Starting from 2024 reporting year, the Terna Group is required to prepare the Consolidated Sustainability Statement pursuant to Legislative Decree no. 125 of 6 September 2024 (the “Decree”), which transposes the provisions of Directive (EU) no. 2022/2464 - the Corporate Sustainability Statement Directive (“CSRD”) - into national law, replacing the previous non-financial reporting requirements (pursuant to Legislative Decree no. 254/2016). During this year, the Group has operated in continuity with the approach adopted in the last reporting year, keeping the structure of the document substantially unchanged. As required by the CSRD, the Consolidated Sustainability Statement was prepared in accordance with the European Sustainability Reporting Standards (ESRS) developed by EFRAG (European Financial Reporting Advisory Group), the main purpose of which is to provide stakeholders with a complete, transparent view of the Group’s ESG performance, allowing for easy comparability with other companies on the European scene. These reporting standards are well identified within Report on Operations. In order to ensure the comparability of the mandatory sustainability disclosure and full compliance with the regulations, the Terna Group has included the Consolidated Sustainability Statement in a specific section of the Report on Operations and defined a structure for it in line with the example in Appendix F (ESRS 1) and with the external recommendations (ESMA), providing for a few specific references – within the Report on Operations – with particular reference to the Terna Group’s business and to its strategic description in order to ensure greater fluidity in reading these aspects and make it easier to find information. For more details on the structure of the Consolidated Sustainability Statement, see the paragraph “General basis for preparation” in the “General disclosures” section. Accordingly, any additional information in the ESG area that the Terna Group wishes to disclose will be included in complementary documents published on a voluntary basis or on the company website. The contents of the Consolidated Sustainability Statement 2025 are based on the findings of the Double Materiality Assessment conducted in accordance with the requirements of the CSRD, ESRS and related Implementation Guidelines. This assessment identified the most relevant sustainability topics for the Terna Group, adopting an integrated approach that considered both impact materiality and financial materiality. Through the impact materiality, the Terna Group assessed the significant effects that its activities have generated at environmental, social and governance levels, considering both current and potential impacts, both positive and negative, and their repercussions on the entire value chain. Through financial materiality, on the other hand, the Group analysed how environmental, social and governance (ESG) issues have affected and could affect its financial performance in the future and assessed the risks and opportunities arising from them. Moreover, the ESRS Standards incorporate and integrate the main characteristics of the TCFD (Task Force on Climate-Related Financial Disclosures) and TNFD (Taskforce on Nature-related Financial Disclosures) frameworks, which the Terna Group had also aligned with in its previous years’ reports, and for which the relevant information can be found in the “Environmental information” section of the Consolidated Sustainability Statement 2025. The Report on Operations is an interactive document, including a number of hyperlinks providing additional information on certain topics and taking the reader directly to specific pages on Terna’s website at www.terna.it. In addition, the Annual Report contains information in line with the ESMA Priorities and the mandatory requirements under article 8 of the EU Taxonomy and related delegated acts included in the “Environmental information” section. This 2025 Annual Report was approved by Terna S.p.A.’s Board of Directors on 26 March 2026. ## Full report chapters - [LETTER TO STAKEHOLDERS](https://www.terna-reports.it/2025/2025/en/letter-to-stakeholders) - [REPORT ON OPERATIONS — Main events of 2025](https://www.terna-reports.it/2025/2025/en/report-on-operations/main-events-of-2025) - [REPORT ON OPERATIONS — Corporate bodies](https://www.terna-reports.it/2025/2025/en/report-on-operations/corporate-bodies) - [REPORT ON OPERATIONS — 1 The Terna Group — The role of Terna](https://www.terna-reports.it/2025/2025/en/ternas-role) - [REPORT ON OPERATIONS — 1 The Terna Group — The Terna Group’s business](https://www.terna-reports.it/2025/2025/en/business-model) - [REPORT ON OPERATIONS — 1 The Terna Group — Ownership structure](https://www.terna-reports.it/2025/2025/en/report-on-operations/1-the-terna-group/ownership-structure) - [REPORT ON OPERATIONS — 1 The Terna Group — Structure of the Group](https://www.terna-reports.it/2025/2025/en/report-on-operations/1-the-terna-group/structure-of-the-group) - [REPORT ON OPERATIONS — 1 The Terna Group — Group milestones](https://www.terna-reports.it/2025/2025/en/report-on-operations/1-the-terna-group/group-milestones) - [REPORT ON OPERATIONS — 2 The value creation strategy — The 2030 goals and Terna’s contribution](https://www.terna-reports.it/2025/2025/en/the-2030-goals-and-ternas-contribution) - [REPORT ON OPERATIONS — 2 The value creation strategy — Reference scenarios](https://www.terna-reports.it/2025/2025/en/report-on-operations/2-the-value-creation-strategy/reference-scenarios) - [REPORT ON OPERATIONS — 2 The value creation strategy — The strategy](https://www.terna-reports.it/2025/2025/en/the-strategy) - [REPORT ON OPERATIONS — 2 The value creation strategy — The value creation process](https://www.terna-reports.it/2025/2025/en/the-value-creation-process) - [REPORT ON OPERATIONS — 3 The Terna Group's business — Regulated activities](https://www.terna-reports.it/2025/2025/en/report-on-operations/3-the-terna-groups-business/regulated-activities) - [REPORT ON OPERATIONS — 3 The Terna Group's business — Non-regulated activities](https://www.terna-reports.it/2025/2025/en/report-on-operations/3-the-terna-groups-business/non-regulated-activities) - [REPORT ON OPERATIONS — 3 The Terna Group's business — International Activities](https://www.terna-reports.it/2025/2025/en/report-on-operations/3-the-terna-groups-business/international-activities) - [REPORT ON OPERATIONS — 3 The Terna Group's business — The Terna Group’s financial resources](https://www.terna-reports.it/2025/2025/en/report-on-operations/3-the-terna-groups-business/the-terna-groups-financial-resources) - [REPORT ON OPERATIONS — 4 Remarks on the results and other information — The Terna Group’s financial review for 2025](https://www.terna-reports.it/2025/2025/en/report-on-operations/4-remarks-on-the-results-and-other-information/the-terna-groups-financial-review-for-2025) - [REPORT ON OPERATIONS — 4 Remarks on the results and other information — Terna S.p.A.’s financial review for 2025](https://www.terna-reports.it/2025/2025/en/report-on-operations/4-remarks-on-the-results-and-other-information/terna-spas-financial-review-for-2025) - [REPORT ON OPERATIONS — 4 Remarks on the results and other information — Share price performance](https://www.terna-reports.it/2025/2025/en/report-on-operations/4-remarks-on-the-results-and-other-information/share-price-performance) - [REPORT ON OPERATIONS — 4 Remarks on the results and other information — Outlook](https://www.terna-reports.it/2025/2025/en/report-on-operations/4-remarks-on-the-results-and-other-information/outlook) - [REPORT ON OPERATIONS — 4 Remarks on the results and other information — Main risks and uncertainties](https://www.terna-reports.it/2025/2025/en/report-on-operations/4-remarks-on-the-results-and-other-information/main-risks-and-uncertainties) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — General disclosures — General basis for preparation](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/general-disclosures/general-basis-for-preparation) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — General disclosures — ESRS Content Index](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/general-disclosures/esrs-content-index) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — General disclosures — Relationship with stakeholders](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/general-disclosures/relationship-with-stakeholders) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — General disclosures — Double Materiality](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/general-disclosures/double-materiality) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — General disclosures — The Terna Group's policies for managing impacts, risks and opportunities](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/general-disclosures/the-terna-groups-policies-for-managing-impacts-risks-and-opportunities) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — General disclosures — Corporate governance and sustainable success](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/general-disclosures/corporate-governance-and-sustainable-success) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — General disclosures — The remuneration system](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/general-disclosures/the-remuneration-system) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Environmental information — EU Taxonomy](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/environmental-information/eu-taxonomy) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Environmental information — Climate change ESRS E1](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/environmental-information/climate-change-esrs-e1) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Environmental information — Protection of biodiversity ESRS E4](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/environmental-information/protection-of-biodiversity-esrs-e4) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Environmental information — Promoting the circular economy ESRS E5](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/environmental-information/promoting-the-circular-economy-esrs-e5) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Environmental information — Quality, security and continuity of the electricity service Entity specific](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/environmental-information/quality-security-and-continuity-of-the-electricity-service-entity-specific) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Social information — Own Workforce ESRS S1](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/social-information/own-workforce-esrs-s1) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Social information — Workers in the value chain ESRS S2](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/social-information/workers-in-the-value-chain-esrs-s2) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Social information — Local Communities ESRS S3](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/social-information/local-communities-esrs-s3) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Social information — Customers ESRS S4](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/social-information/customers-esrs-s4) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Governance information — Business Conduct and Supplier Relationship Management ESRS G1](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/governance-information/business-conduct-and-supplier-relationship-management-esrs-g1) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Governance information — Innovation and digitalisation Entity specific](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/governance-information/innovation-and-digitalisation-entity-specific) - [REPORT ON OPERATIONS — 5 Consolidated Sustainability Statement 2025 — Governance information — Cyber Security Entity specific](https://www.terna-reports.it/2025/2025/en/report-on-operations/5-consolidated-sustainability-statement-2025/governance-information/cyber-security-entity-specific) - [REPORT ON OPERATIONS — 6 Certification of Sustainability Statement](https://www.terna-reports.it/2025/2025/en/report-on-operations/6-certification-of-sustainability-statement) - [REPORT ON OPERATIONS — 7 The independent report on the limited audit of the Consolidated Sustainability Statement 2025](https://www.terna-reports.it/2025/2025/en/report-on-operations/7-the-independent-report-on-the-limited-audit-of-the-consolidated-sustainability-statement-2025) - [REPORT ON OPERATIONS — 8 Annexes — Regulatory framework and other information](https://www.terna-reports.it/2025/2025/en/report-on-operations/8-annexes/regulatory-framework-and-other-information) - [REPORT ON OPERATIONS — 8 Annexes — Changes in the dimensions of the NTG](https://www.terna-reports.it/2025/2025/en/report-on-operations/8-annexes/changes-in-the-dimensions-of-the-ntg) - [REPORT ON OPERATIONS — 8 Annexes — The Terna Group’s companies](https://www.terna-reports.it/2025/2025/en/report-on-operations/8-annexes/the-terna-groups-companies) - [REPORT ON OPERATIONS — 8 Annexes — Alternative performance measures (APMs)](https://www.terna-reports.it/2025/2025/en/report-on-operations/8-annexes/alternative-performance-measures-apms) - [CONSOLIDATED FINANCIAL STATEMENTS — Consolidated financial statements — Consolidated income statement](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/consolidated-financial-statements/consolidated-income-statement) - [CONSOLIDATED FINANCIAL STATEMENTS — Consolidated financial statements — Consolidated statement of comprehensive income](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/consolidated-financial-statements/consolidated-statement-of-comprehensive-income) - [CONSOLIDATED FINANCIAL STATEMENTS — Consolidated financial statements — Consolidated statement of financial position](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/consolidated-financial-statements/consolidated-statement-of-financial-position) - [CONSOLIDATED FINANCIAL STATEMENTS — Consolidated financial statements — Consolidated statement of changes in equity](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/consolidated-financial-statements/consolidated-statement-of-changes-in-equity) - [CONSOLIDATED FINANCIAL STATEMENTS — Consolidated financial statements — Consolidated statement of cash flows](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/consolidated-financial-statements/consolidated-statement-of-cash-flows) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — A. Material accounting standards and measurement criteria](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/a-material-accounting-standards-and-measurement-criteria) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — B. Notes to the consolidated income statement](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/b-notes-to-the-consolidated-income-statement) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — C. Operating segments](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/c-operating-segments) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — D. Notes to the consolidated statement of financial position](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/d-notes-to-the-consolidated-statement-of-financial-position) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — E. Commitments and risks](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/e-commitments-and-risks) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — F. Business combinations](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/f-business-combinations) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — G. Related party transactions](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/g-related-party-transactions) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — H. Significant non-recurring, atypical or unusual events and transactions](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/h-significant-non-recurring-atypical-or-unusual-events-and-transactions) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — I. Notes to the statement of cash flows](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/i-notes-to-the-statement-of-cash-flows) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — L. Government grants](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/l-government-grants) - [CONSOLIDATED FINANCIAL STATEMENTS — Notes — M. Significant events after the reporting period](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/notes/m-significant-events-after-the-reporting-period) - [CONSOLIDATED FINANCIAL STATEMENTS — Disclosure](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/disclosure) - [CONSOLIDATED FINANCIAL STATEMENTS — Attestation](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/attestation) - [CONSOLIDATED FINANCIAL STATEMENTS — Independent Auditor’s Report](https://www.terna-reports.it/2025/2025/en/consolidated-financial-statements/independent-auditors-report) - [SEPARATE FINANCIAL STATEMENTS — Financial statements — Income statement](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/financial-statements/income-statement) - [SEPARATE FINANCIAL STATEMENTS — Financial statements — Statement of comprehensive income](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/financial-statements/statement-of-comprehensive-income) - [SEPARATE FINANCIAL STATEMENTS — Financial statements — Statement of financial position](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/financial-statements/statement-of-financial-position) - [SEPARATE FINANCIAL STATEMENTS — Financial statements — Statement of changes in equity](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/financial-statements/statement-of-changes-in-equity) - [SEPARATE FINANCIAL STATEMENTS — Financial statements — Statement of cash flows](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/financial-statements/statement-of-cash-flows) - [SEPARATE FINANCIAL STATEMENTS — Notes — A. Material accounting policies and measurement criteria](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/a-material-accounting-policies-and-measurement-criteria) - [SEPARATE FINANCIAL STATEMENTS — Notes — B. Notes to the income statement](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/b-notes-to-the-income-statement) - [SEPARATE FINANCIAL STATEMENTS — Notes — C. Operating segments](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/c-operating-segments) - [SEPARATE FINANCIAL STATEMENTS — Notes — D. Notes to the statement of financial position](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/d-notes-to-the-statement-of-financial-position) - [SEPARATE FINANCIAL STATEMENTS — Notes — E. Commitments and risks](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/e-commitments-and-risks) - [SEPARATE FINANCIAL STATEMENTS — Notes — F. Business combinations](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/f-business-combinations) - [SEPARATE FINANCIAL STATEMENTS — Notes — G. Related party transactions](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/g-related-party-transactions) - [SEPARATE FINANCIAL STATEMENTS — Notes — H. Significant non-recurring, atypical or unusual events and transactions](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/h-significant-non-recurring-atypical-or-unusual-events-and-transactions) - [SEPARATE FINANCIAL STATEMENTS — Notes — I. Notes to the statement of cash flows](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/i-notes-to-the-statement-of-cash-flows) - [SEPARATE FINANCIAL STATEMENTS — Notes — L. Government grants](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/l-government-grants) - [SEPARATE FINANCIAL STATEMENTS — Notes — M. Proposal for appropriation of profit for the year](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/m-proposal-for-appropriation-of-profit-for-the-year) - [SEPARATE FINANCIAL STATEMENTS — Notes — N. Significant events after the reporting period](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/notes/n-significant-events-after-the-reporting-period) - [SEPARATE FINANCIAL STATEMENTS — Disclosure](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/disclosure) - [SEPARATE FINANCIAL STATEMENTS — Attestation](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/attestation) - [SEPARATE FINANCIAL STATEMENTS — Report](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/report) - [SEPARATE FINANCIAL STATEMENTS — Report of the Independent Auditor's](https://www.terna-reports.it/2025/2025/en/separate-financial-statements/report-of-the-independent-auditors) - [OTHER DOCUMENTS — Green Bond Report 2025 — Introduction](https://www.terna-reports.it/2025/2025/en/other-documents/green-bond-report-2025/introduction) - [OTHER DOCUMENTS — Green Bond Report 2025 — Green bond allocation and impact reporting](https://www.terna-reports.it/2025/2025/en/other-documents/green-bond-report-2025/green-bond-allocation-and-impact-reporting) - [OTHER DOCUMENTS — Green Bond Report 2025 — European Green Bond: allocation and impact report](https://www.terna-reports.it/2025/2025/en/other-documents/green-bond-report-2025/european-green-bond-allocation-and-impact-report) ## Documents - [2025 Annual Report](https://www.terna-reports.it/2025/2025/docs/en/TERNA_RFA_2025_ENG_Bookmark_EVO.pdf) - [2025 Report on Corporate Governance and Ownership Structures](https://www.terna-reports.it/2025/2025/docs/en/Terna_Gov%20Soc25_ENG_Bookmarks.pdf) - [2026 Report on the Remuneration Policy and Remuneration Paid](https://www.terna-reports.it/2025/2025/docs/en/Terna_Remunerazione26_ENG_Bookmarks.pdf) - [ESEF/XBRL](https://www.terna-reports.it/2025/2025/docs/en/TERNA_RFA_2025_ENG.epub) - [PDF for visually impaired individuals](https://www.terna-reports.it/2025/2025/docs/en/TERNA_ANNUAL%20REPORT%202025_ENG-LIA.pdf)