Italy's Terna pledges record spending to get grid ready for energy transition (updated)

Terna Energy SA

19/11/2020 10:28

(Recasts, adds detail)
    By Stephen Jewkes
    MILAN, Nov 19 (Reuters) - Italian power grid operator Terna
 TRN.MI  has pledged to spend a record 8.9 billion euros ($10.5
billion) on its grid in the next five years to meet the demands
of a growing shift towards green energy.
    The future of Europe’s energy transition away from fossil
fuels to cleaner sources is widely seen as hinging on the
development of more efficient digitalized grids able to cope
with less predictable flows from solar and wind power.
    "We need to act now to ensure that we bequeath a more
reliable, efficient and decarbonised electricity system to
future generations," Terna CEO Stefano Donnarumma said.
    In its new 2021-2025 plan, Terna bumped up investments by
22% to iron out bottlenecks along its 66,000 km grid, strengthen
cross-border connections and get the network ready for the
energy transition.
    The company said it would spend an additional amount of up
to 300 million euros on new opportunities abroad, adding it
would also look to develop new lines of business such as
hydro-pumping electricity storage and renewable energy.
    Terna, which is controlled by state lender CDP, makes most
of its revenues from developing its high voltage domestic power
grid but also has some operations in Latin America.  
    Group core earnings are expected to rise to 2.21 billion
euros in 2025 from an expected 1.84 billion euros next year,
according to the plan, while net profit at the end of the plan
is seen at 1 billion euros.
    Dividend per share will grow by an average of 8% a year
between 2021 and 2023, it said.
 
 ($1 = 0.8452 euros)

 (Reporting by Stephen Jewkes; Editing by Susan Fenton)
 ((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters
Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))