THE NEW TERNA
1962 - 1999
From a Monopoly to an Independent System Operator
Terna’s principal activities date back to the former electricity monopoly: in 1962, Law 1943 paves the way for nationalisation of the electricity industry, handing ENEL responsibility for all the stages of the electricity supply chain (productiontransmission-distribution-sale), previously in private hands.
The monopoly operator is able to complete electrification of the entire country, but the driving force behind the changes that have led to the current operating environment is, without doubt, the process of deregulation of the Italian electricity market. This is promoted by the European Union through the issue of a number of specific directives which, as regards transmission, establish that it is necessary to create a grid management company that is independent of individual operators within the industry, and above all free of the influence of the dominant operator.
Decree 79 of 16 March 1999 (the so-called “Bersani Decree”) thus establishes that ENEL is to incorporate a national grid operator (Gestore della Rete di Trasmissione Nazionale or GRTN), a joint-stock company owned by the Ministry of the Economy. The government then grants GRTN a concession covering transmission, dispatching and planning for the development of the electricity grid. The key provision in the Bersani Decree is the separation of ownership of the various elements making up the National Transmission Grid from management of the grid itself (involving transmission and dispatching) along the lines of the so-called “Independent System Operator” model. Two new companies are therefore established: Terna, owner of the Italian transmission grid, and GRTN (the National Transmission Grid Operator).
Terna’s Initial Public Offering
A Cabinet Office Decree gives the Group a new corporate governance system, designed to guarantee the neutrality and impartiality of Terna’s management. 50% of the Company’s share capital is floated on the Italian Stock Exchange (in the Blue Chip segment). The remaining shares are retained by ENEL. The shares, having been bought primarily by US, UK and Italian investment funds, close their first day of trading up 3.60%.
2005 - 2008
Unification of the roles of Transmission Operator and System Operator: Terna’s new mission to serve the country
Ownership and management of the grid are combined. This marks the culmination of a process that began in 1999 and the start of a new stage in Terna’s mission to serve the country.
To safeguard Terna’s independence as the National Transmission Grid Operator, the Ministry of the Economy and Finance acquires a 29.99% in Terna from ENEL through CDP (Cassa Depositi e Prestiti), thereby becoming the largest shareholder.
In this period, the Company records continuous growth, acquiring many portions of the grid, including control of the sections of the national transmission grid (NTG) owned by ACEA, Edison, AEM and AEM TE. The subsidiary, Terna Participações, is listed on the Sao Paulo Stock Exchange (BOVESPA).
Terna becomes the largest TSO in Europe. Shareholders see the value of the investments grow
The Business Plan for the 2009-2013 period envisages capital expenditure of approximately €3.4 billion, including €2.6 billion in development of the grid. Terna acquires 18,600 km of High-Voltage lines from Enel, thereby becoming the leading independent grid operator in Europe and the seventh largest in the world. Terna now owns 98.6% of Italy’s national grid.
In 2009, Terna sells 66% of Terna Participações to Cemig for a total of €797 million, recording a gain of over €400 million, some of which is invested in development of the Italian electricity network and some is returned cash to shareholders.
THE PRESENT DAY
2010 - 2013
New crucial lines and the progressive growth of non-regulated services
In 2011Terna develops infrastructure of international excellence. The SA.PE.I. line (connecting Sardinia with the mainland) starts operating, as does the Chignolo Po-Maleo line in Lombardy. Work begins on the Sorgente-Rizziconi line (linking Sicily and Calabria).
Two new operating companies are established in 2012: Terna Rete Italia SpA, responsible for Regulated Activities, and Terna Plus Srl, with responsibility for expanding the non-regulated services offered by Terna.
2014 - 2017
Consolidates leadership in Europe with new investments
The new Strategic Plan for the 2014-2018 period envisages investment of €5 billion over 5 years (€3.6 billion to be invested in development of the grid and €1.3 billion in Non-Regulated Activities).
In 2015, Terna acquires the Ferrovie dello Stato group’s high-voltage grid for €757 million, consolidating its leadership in Europe with approximately 72,600 km of grid managed. Terna’s value has more than doubled since its IPO.
In 2016 Terna focuses on strategic power lines. The Villanova-Gissi and Sorgente-Rizziconi lines enter service. The latter is a record-breaking power line, connecting Sicily and Calabria and the Italian Peninsula with the rest of Europe via the country’s High-Voltage electricity system.
The Terna Group’s new Strategic Plan, “Grid and Values”
In line with the guidance provided by the United Nations (COP21), EU guidelines and the objectives set out in the National Energy Strategy (NES), Terna has a key role to play in enabling the integration of all the new resources and for planning and managing the system in order to ensure its security and efficiency.
Against this backdrop, Terna has stepped up the pace of investment, focusing on development of the national transmission grid in order to facilitate the integration of renewable sources and improve the system’s security. At the same time, it intends to renew the Group’s asset base in order to mitigate the risk of interruptions to supply, boost environmental sustainability and make it easier to carry out maintenance activities through the use of digital grid technologies.
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