Italy’s power grid company Terna is to invest €16.5 billion in investments over the next five years, aiming to facilitate the integration of renewable energy sources into the country’s economy whilst also enhancing the digital flexibility of the network.

Announced on Tuesday and drafted by new Chief Executive Giuseppina Di Foggia, the plans mark a 65% rise in capital expenditure within the company’s 2024-2028 plan, compared to a prior strategy. 

Additionally, Di Foggia said Terna was contemplating the possibility of purchasing distribution assets, Reuters reports.

The new regulations provide power distributors with incentives “to sell some assets that could be useful for our transmission activity... we are doing preliminary assessments on this,” Di Foggia stated.

Reports last month indicated Terna could allocate €1.5 billion to purchase distribution assets from utilities in Italy.

Furthermore, within its industrial plan, Terna said it aimed to boost adjusted core earnings by an average of more than 8% each year to 2028.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) are forecast to hit €3.25 billion in 2028 from €2.17 billion last year.

According to its draft energy and climate plan (PNIEC), Italy’s government is planning to generate 65% of its electricity from renewable energy sources by 2030. This plan includes phasing out coal usage by 2028 and decreasing reliance on gas-fired power stations

Moreover, Terna will undertake efforts to ready the power system for the management of growing volumes of renewable energy. This renewable energy, predominantly intermittent, will originate from diverse and widespread sources.

The planned projects include the Tyrrhenian Link, a submarine cable linking Sicily with Campania and Sardinia; the Adriatic Link, connecting the regions of Abruzzo and Marche; and an interconnection between Italy and Tunisia.