Terna

Capital/Financing Update • Oct 24, 2024

PRESS RELEASE

Rome, 24 October 2024

EIB and Terna sign €400 million loan to upgrade national power grid

• The loan will finance investments in upgrading the Italian power grid to improve resilience and reliability.
• The agreement will help promote the objectives of REPowerEU, for which the EIB has allocated an additional €45 billion in financing by 2027

Terna and the European Investment Bank (EIB) have signed a €400 million finance contract to strengthen the efficiency and reliability of the Italian power grid.

The interventions, set to be carried out across the country by 2026, aim to upgrade and replace existing infrastructure with cutting-edge environmentally sustainable solutions, helping to significantly improve the resilience of the grid to future extreme weather events.

The finance contract further consolidates the EIB-Terna partnership, which is vital to meeting the REPowerEU objectives and promoting the transition and energy security in Europe.

As with previous EIB financing, this loan has a term of 22 years from the date of disbursement and will be provided in a single fixed-rate tranche. The loan's longer term and more competitive costs compared to alternatives on the open market align with Terna's financial structuring optimisation and efficiency policy.

"Investing in the modernisation of power grids is key to addressing the rising demand for energy, promoting the integration of new renewable energy sources, and adapting to the digital transformation. This agreement with Terna confirms the EIB's commitment to supporting projects that upgrade energy infrastructure, contribute to the green transition, and ensure energy security in Italy and across Europe," said EIB Vice-President Gelsomina Vigliotti.

"The progressive electrification of consumption and the increase in global demand, the growing penetration of renewable sources in the energy mix, and, above all, the increasingly frequent adverse climate events are factors that make it crucial for Terna to continue investing in the over 75,000 km of electrical grid that the company manages across the country, as well as in the construction of new electrical backbones and submarine connections. In fact, it is necessary to modernise existing assets with technologically advanced components to increase the resilience of the grid and the level of security and adequacy of the electricity transmission service. At the same time, the capacity of the grid must be expanded with new connections," said Giuseppina Di Foggia, CEO and General Manager of Terna. "We therefore welcome the renewed support of the European Investment Bank, which has already been by our side in supporting the country's energy transition, also for another strategic infrastructure: the Tyrrhenian Link, the world's most important undersea electricity transmission project," Di Foggia concluded.

Background information

European Investment Bank (EIB)

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investments that can contribute to EU policy. EIB projects strengthen competitiveness, foster innovation, promote sustainable development and improve social and territorial cohesion while supporting a fair and rapid transition towards climate neutrality. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.

Terna

The Terna Group is a leading electricity transmission operator in Europe and around the world. It manages Italy's national high-voltage transmission grid, with around 75 000 km of power lines over 900 electrical substations across the country. Its mission is to guarantee the secure operation, quality and efficiency of the Italian electricity system 24 hours a day, 365 days a year, and to ensure equal access conditions for all market operators. A centre of excellence comprising over 6 100 professionals, Terna plays a guiding role in the energy transition process towards complete decarbonisation and the full integration of energy from renewable sources into the grid. For more information, visit www.terna.it.

Press contacts

EIB: Lorenzo Squintani, l.squintani@eib.org, mobile: +39 366 57 90 312 Website: www.eib.org/press – Press Office: +352 4379 21000 press@eib.org

Terna: Media Relations (+39) 06 8313 9081 ufficio.stampa@terna.it