Italy’s Terna buys €203m in high voltage grid assets
Image courtesy 123rf
Italian TSO Terna has signed an agreement with utility company Acea to purchase aerial and underground lines, substation components and a fibreoptic network, all used along the transmission network in Rome.
Italy signed the agreement alongside DSO Areti, which is owned by Acea.
The agreement sees Terna acquire 100% of share capital in a newly created company, known as NewCo, within which Areti will contribute part of its high voltage grid assets in the metropolitan area of Rome.
The scope of the transaction includes:
• 73 high-voltage power lines consisting of 481km of both aerial and underground lines;
• High-voltage components of three primary substations;
• A fibreoptic network extended over the high-voltage lines, which will be primarily used for the operation and monitoring of the National Electricity Transmission Grid and to be commercialised to third parties;
The value of the transaction is estimated to be approximately €203 million ($218.3 million) at the end of 2024.
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Commenting in a release was Giuseppina Di Foggia, Terna’s chief executive officer and general manager: “The agreement…will make planning and operational management of the power grid more efficient, particularly in the Rome area, improving service continuity and security.
“The transaction is in line with the targets outlined in the 2024-2028 Industrial Plan and will contribute to achieving the Group’s financial and growth objectives.”
According to Terna, the purchase of the assets involved in the transaction will facilitate improved decision-making processes concerning investments in the renewal and development of the electricity grid in central Italy, generating new potential growth opportunities.
According to Acea, the transaction forms part of Italy’s high voltage grid management streamlining process, as indicated by ARERA.
Commented ACEA chief executive officer, Fabrizio Palermo: “This transaction is part of the programme to valorise and optimise our asset portfolio as set forth by the 2024-2028 Business Plan and takes advantage of an opportunity provided by the regulatory framework.
“The sale proceeds will be used to increase the investments planned for Rome’s electricity distribution network, which is expected to become increasingly resilient and digital, with a consequent improvement in service quality.”
Closing of the transaction remains subject to the fulfillment of certain conditions, which will be carried out in the coming weeks, with the aim of closing the transaction within the first half of 2025.
Financing grid expansion and modernisation was one of the key topics during Enlit Europe, held in Milan, Italy. In an exclusive interview during Enlit Europe 2024, Rainer Pflaum, CFO of Germany’s TransnetBW, discusses the challenges we face in financing the grid of tomorrow.
