A pivotal & growing role in the power system. We are responsible for transmitting, managing and dispatching the Italian electricity system. We take our role as TSO (Transmission System Operator) seriously, and our core tasks include operating the high voltage grid, maintaining grid infrastructure, planning grid development and grid construction.
TSO: A transmission system operator (TSO) is an entity entrusted with transporting energy in the form of natural gas or electrical power on a national or regional level, using fixed infrastructure. The term is defined by the European Commission. In North America, the TSO is termed ISO (Independent System Operator) or RTO (Regional System Operator).
Terna is the largest transmission system operator in Europe in terms of kilometres of lines managed.
Terna’s business model focuses primarily on its Regulated Activities, consisting of the transmission and dispatching of electricity. By leveraging the expertise developed in managing its core business, the company’s Non-Regulated and International Activities help to boost growth, taking advantage of the opportunities resulting from technological discontinuities and from energy sector trends in Italy and abroad. Our Strategic Plan, which focuses on the long term, sets out targets, priorities and investments, based on an analysis of medium- and long-term trends that could present challenges, and on the consequent identification of the related solutions. Good examples are the changing energy scenarios and the resulting need to upgrade the electricity transmission grid, or the increasing integration of grids at European level.
Transmission and dispatching of electricity (regulated activities) make up most of our revenues. However, our strategy envisages the increasing development of non-regulated services and international initiatives (such as our work in South America and private interconnectors connecting Italy to France e Montenegro).
Source: Integrated Report 2017
2017 key figures by business lines
The backbone to our business is electricity transmission & dispatching
We are responsible for the transmission and management of power flows on the High-Voltage and Very-High-Voltage grid in Italy, ensuring there is a constant balance between demand and supply of energy (known as dispatching). Our regulated services are carried out in a monopoly arrangement based on government concessions.
The high-voltage grid is the backbone of the electricity supply system, connecting electricity producers to consumers, connecting and integrating electricity markets.
What this means in practice is that the power grid is stable when the electricity that is generated corresponds with the electricity that is consumed. The grid operator is responsible for maintaining the balance.
A secure and continuous supply of electricity is the key objective of our operations. Our role as TSO (in accordance with the Italian Regulatory Authority for Electricity, Gas and Water (AEEGSI) and the guidelines set by the Ministry of Economic Development) ensures the security, quality and cost efficiency of the national electricity system. We strive to ensure equal access for all Grid users.
We are also responsible for the planning, construction and maintenance of the grid, as well as its integration with the European grid. To read more about our regulated services, head over to Developing & managing the Italian national grid.
The Italian electricity sector, in particular, is evolving very rapidly due to the effects of profound energy transition, focused on achieving sustainability goals and improving system security. The most significant elements of the new model are the integration and management of renewable energy, energy efficiency, grid digitalisation and storage systems.
In this context, it is essential that Terna reports the data, focusing on the consistency, number of plants and installed power of the renewable sources
We are an energy solution provider to the Italian domestic market
As an energy solution provider to the Italian domestic market we are able to pursue new business opportunities by leveraging our skills and putting to use the valuable experience gained in the regulated market.
The services we offer for the non-regulated market include Engineering, Procurement and Construction (EPC), Operations & Maintenance (O&M) and Telecommunication (TLC). The ability to continuously innovate, share our knowledge and gain further experience and technical expertise helps foster growth for our business. Terna Plus, a company of Terna Group, is responsible for non-regulated services, both in Italy and abroad.
Read more about the non-regulated services we offer.
Pantelleria becomes “Smart Island”
In May 2016, Terna Plus signed an agreement with the Municipality of Pantelleria and S.Med.E, the entity that oversees electric energy production on the island, to develop a more sustainable way of generating energy. Known as “Smart Island”, the project aims to improve energy efficiency and cut carbon emissions, and envisions electric power plants fueled with renewables.
Pantelleria, near Sicily, currently generates enough electricity to make it self-sufficient but relies almost entirely on fossil fuels for its production. It is among a number of Italian islands that cannot be connected to the national electricity grid due to its geographical positioning.
The goal is to gradually integrate traditional energy production with renewables, which are now only marginally used, to bring the latter up to 30% of the total, and thus create a more sustainable way of generating energy. Initiatives include measures to boost energy efficiency, develop cells to store energy, and move to electric vehicles with battery charging stations.
Thanks to Terna’s integrated smart grid management, these actions will not only help reduce pollution, improve environmental conditions and the quality of life for the citizens of Pantelleria, but will also have a positive impact on tourism, a vital component of the island's economy
We are expanding our services to the international market
Our initiatives abroad are based on the following approach:
1) Developing greater interconnectivity with European countries, following European energy policies and guidelines. With a national grid that counts over 25 electricity interconnections between neighbouring countries
, and over five in construction, we want to share and build on our knowledge and expertise abroad.
2) Developing our services with countries outside of Europe, due to our geographical positioning, rendering us the natural hub of the Mediterranean.
3) Lending our know-how and technical expertise to emerging markets, especially in South America. We offer our services to countries requiring investments in transmission infrastructures. We require our partners to have stable political and regulatory frameworks, as security is of the utmost importance to us.
Read more about our international initiatives here
With our teams we are present throughout the entire national territory
. In detail, excluding Tamini, Avvenia and companies abroad, our people are distributed as follows: 1,267 colleagues in the north of Italy, 1,662 in the center (including Sardinia) and 742 in the south (including Sicily).
Our regulated activities abroad take place mostly in South America: in Peru, Uruguay and Brazil. The countries were selected based on their political stability, credit standing and positive rates of economic growth.
The energy market is undergoing a profound change. To meet the challenges of tomorrow, we need to work together to ensure we are creating global solutions. For this reason, we work in close collaboration with global energy operators with a consolidated presence in their markets.
Read more about how we work with international partners to meet the growing energy challenges here.