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Focus on Energy Transition: Italy Unveils Grid Development Plan 2021 [free access]

October 8, 2021

The European electricity sector is undergoing a steady transformation brought about by the massive growth in renewable energy resources and the European Union’s (EU) commitment to becoming carbon neutral by 2050 as per its green deal. In line with this, Italy’s National Energy and Climate Plan (PNIEC) has set very ambitious targets for renewables by 2030, aiming to reach 30 per cent in total energy consumption and 55 per cent in electricity generation. To achieve these targets, around 40 GW of new renewable capacity, mostly wind and photovoltaic, will need to be installed in the country by 2030.

 

The country’s transmission system operator (TSO) Terna S.p.A., which owns over 99.7 per cent of the national transmission grid (NTG), is playing a key role in accelerating this energy transition and decarbonisation in Italy through sustainable investments aimed at integrating renewable sources to increase the efficiency, safety and resilience of the electricity grid.

 

The recently unveiled 2021 Development Plan for the national electricity transmission grid mirrors these ambitious targets of energy transition with planned investments 25 per cent higher than the previous 10-year development plan

 

2021 Development Plan for the National Electricity Transmission Grid

In July 2021, Terna released its Development Plan 2021 for the NTG in which it has pledged to invest a record EUR18.1 billion in the country's power grid over the next 10 years to meet the demands of the energy transition and economic recovery. The key drivers for projects included in this plan are decarbonisation, market efficiency, security of supply and sustainability. The investments will aim to integrate energy produced by solar and wind projects in the south with consumption centres in the north as well as enhance connections between the mainland and islands.The investments will facilitate the integration of about 40 GW of renewable generation by 2030; demolish 4,600 km of obsolete transmission lines (which is 800 km more than the previous plan); result in an additional 6 GW of cross-border interconnection capacity; reduce energy losses by 2,000 GWh annually as well as cut carbon emissions by 5.6 million tonnes per year (double that of the previous plan) due to improvements in the generation mix and lower network losses.

 

Terna has planned over 30 new infrastructure projects, giving high priority to all projects deemed strategic for the entire national electricity system.Several projects of national interest are included in the Development Planand are scheduled to be completed in the early years of the plan. These include the 380 kV Colunga–Calenzanopower line, the 380 kV Chiaramonte Gulfi–Ciminna line, the 80 kV Paternò–Pantano–Priolo power line, and the 380 kV Bisaccia–Deliceto line.

 

Among the other projects that will also come into operation during the period of the Planis the EUR3.7 billion Tyrrhenian Link. This isa 500 kV high voltage direct current (HVDC) link that will connect Sardinia to Sicily and the latter to Italy’s mainland.It will contribute to the phase-out of coal-fired power plants in Sardinia and allow for the retirement of thermoelectric plants in Sicily, while enabling renewable development.

 

Terna also plans to commission the 280-km undersea HVDC Adriatic Link between Abruzzo and Marche by 2028. The EUR1 billion projectwill be imperative for the integration of wind power and photovoltaic power produced in southern Italy with the consumption centres in the north.

 

Additionally, the 380 kV Bolano–Paradiso 2 connection between Sicily and Calabria will allow the exchange of electricity between the island and mainland to be increased to 2GW, benefiting the clean energy developments planned for the south of the country.Another 380 kV power line has been planned between the areas of Montecorvino and Benevento. Over 70 km long, this line will help ease grid congestion in Campania and in the south in general.

 

Cross Border Interconnections

A major portion of Terna’s past investments have been spent on the development and construction of interconnections with neighbouring European countries. The 2021 Development Plan has approvedover 6 GW of new interconnection capacity to be added during the next decade. Planned investments in cross-border interconnections will allow Italy, given its strategic position in the Mediterraneanand in the European electricity system, to increasingly assume the role of the energy hub of the Mediterranean: a bridge to the Balkans, Central Europe and the North African countries. Its position will be strengthened with the advancement of new interconnection projects along with internal network reinforcements.

 

In the latest plan, investmentsin three new interconnections with Switzerland, Greece and France have been finalised. The first is a new 1,000 MW connection line between Italy and Switzerland that has been planned at an investment of over EUR1.2 billion. The TSO also plans to invest around EUR750 million for the construction of a new 500 MW and 200-km-long undersea cable with Greece. The project will double the current exchange capacity between the two countries and encourage greater integration of renewable sources.

 

The Sa.Co.I.3 project has also been confirmed in the 2021 Development Plan. The project consists of renewal and modernisation of Sa.Co.I.2, the existing HVDC electrical connection between Sardinia (Italian island), Corsica (French island) and the Italian mainland. It will be created using existing assets, with modernisation of bipolar conversion stations and substitution of underground and undersea cables, and will allow the use of a total transport capacity of up to 400 MW.

 

These interconnections, together with the other planned power links with Tunisia and Austria, will allow Italy to strengthen its role of electricity hub in Europe and the Mediterranean area.

 

Recent Initiatives

Terna is taking bold steps to upgrade the transmission network in the country, making the grid resilient for renewable energy integration. It is also actively engaged in innovation, focusing on new technological solutions and the integration of digital measures to modernise the grid.

 

In November 2020, Terna launched its 2021-2025 Industrial Plan as per which it plans to invest over EUR8.9 billion euros in the next five years, a major share of which will be invested in the development of the national grid with the aim of increasing transmission capacity between the different market zones. Around EUR2.4 billion will be invested in renewing and improving the efficiency of Terna’s assets, to be spent largely on improving service quality and processes and on the development of sustainable grid solutions.

 

Also, EUR900 million has been earmarked for initiatives such as new digital systems for management, diagnostics infrastructure for drones, advanced internet of things (IOT) sensors, SF6 free high-voltage electrical equipment,robots and satellites for remote monitoring of power lines and power stations, and advanced methods of processing big data. The TSO is engaged in the development of smart charging and vehicle-to-grid (V2G) applications with the various electric mobility stakeholders to enable the provision of grid services from electric vehicles (EVs). It has also developed a blockchain platform to facilitate the participation of small distributed resources in providing flexibility for the system, together with other European TSOs.

 

Terna is also in the process offinalising a system to give real-time estimates of the main electrical data relating to load and distributed generation.

 

The TSO is also making efforts to optimally manage and increase the capacity of the existing transmission infrastructure through technologies such as synchronous compensators, reactors, and flexible alternating current transmission systems (FACTS) and dynamic rating techniques. Terna is involved in the Horizon2020 OSMOSE project wherein it uses the grid between Puglia and Basilicata to test coordinated management of flexibility resources provided by grid devices, industrial loads and conventional and renewable resources to minimise the cutting of renewables through new energy management algorithms.

 

The TSO has also been conducting research in the field of utility-scale electrochemical storage, and numerous tests have been conducted to identify the potential and margins for improvement of conventional technologies (lithium, ZEBRA and flow batteries) and other types such as supercapacitors.

 

Meanwhile, it is deploying grid-connected storage systems to optimse renewable generation and ensure increased security management of the electricity system. In this regard, the TSO awarded the Enel Group 59.2 MW of capacity contracts in December 2020. The capacity will be supplied by the fast reserve units (FRUs), which include the possibility of combining an electrochemical storage system with EV charging infrastructures and V2G solutions. Starting in January 2023 and through December 2027, these units will provide ultra-fast response service in less than one second. Earlier, in February 2021, Terna awarded Greece-based industrial company Mytilineos S.A two contracts to develop 26MW of battery energy storage capacity in southern Italy by 2022. The systems are expected to start providing fast reserve services to the Italian grid from 2023 until 2027.

 

Terna is collaborating with its counterparts in other European countries to achieve the ambitious European decarbonisation goals. In July 2021, Terna, along with seven other TSOs [Austria’s TSO Austrian Power Grid AG, Belgium’s TSO Elia Asset SA, France’s TSO Réseau de Transport d’Électricité (RTE), Germany’s Amprion, Netherlands’ TenneT, Spain’s Red Eléctrica de España (REE) and Switzerland’s Swissgrid] released a joint paper to highlight and strengthen their key role in the region’s energy transition from a system that mainly uses fossil fuel sources to one that is increasingly cleaner and more efficient. The collaboration has a specific purpose to analyse and evaluate how the activities of the grid operators contribute to the planned decarbonisation, and the achievement of carbon neutrality and sustainability of the electricity system. Earlier in February 2021, Terna collaborated with six other TSOs (Germany’s50Hertz Transmission GmbH and Amprion, Sweden’s Svenska kraftnät, REE, RTE and Norway’s Statnett SF) for the launch of Eurobar, an initiative to interconnect offshore wind platforms across Europe through an interlinked offshore network or ‘busbar alike system’.

 

Way Forward

The future of Italy’s energy transition is heavily dependent on more efficient digitised grids as the energy transition will bring technical and operational grid complexities. The country’s transmission network is already witnessing an increase in network congestion due to renewable energy sources. Hence, transmission investments are imperative to support Italy’s changing generation mix and the projects envisaged in Terna's 2021 Development Plan will be fundamental in this regard. With huge renewable capacities planned to come up in the country, a smooth transition from fossil fuels with the help of strengthening transmission capacity, cross-border interconnections and resilience of infrastructure will be the way forward for the country.

 

Table 1: Terna’s key cross-border interconnection projects for transmission

Name

Scope of work

Voltage

Cost (EUR million)

Completion

Italy–France Interconnector

The new DC interconnector will span 190 km and link Piossasco (Italy) and Grande Ile (France). It will increase the existing cross-border capacity by 1,200 MW and increase the current level of exchange from around 3 GW to more than 4 GW.

±320 kV

 1,400

2021*

Italy–Austria Interconnector

Also known as Reschenpass project, it entails the creation of a new 220 kV AC interconnector between the substations of Nauders (Austria) and Glorenza (Italy). The connection will consist of approximately 26 km of underground cable and related adjustments on the domestic grid.

220 kV

155

2022

Sardinia–Corsica–Italy Interconnection (Sa.Co.I.3 project)

The project consists of renewal and modernisation of Sa.Co.I.2, the existing HVDC electrical connection between Sardinia (Italian island), Corsica (French island) and the Italian mainland. It will be created using existing assets, with modernisation of bipolar conversion stations and substitution of underground and undersea cables, and will allow the use of a total transport capacity of up to 400 MW.

±200 kV

750

2023

 Italy–Switzerland

Interconnector

This involves the construction of a new 400 kV All’Acqua (Switzerland)–Pallanzeno (Italy) line. In Italy, additional works will involve construction of a new 400 kV San Giacomo–Pallanzeno line, conversion from AC to DC of the 220 kV line between Pallanzeno and the Milan area, including the construction of the 2 AC/DC converter stations and 220 kV to 400 KV substation upgrade.

400 kV

 910

2025

Italy–Slovenia

Interconnector

A new HVDC link between Salgareda (Italy) and Divaca/Bericevo (Slovenia) is planned to strengthen the connection between the two countries.

±500 kV

755

2025

Italy–Tunisia Interconnector

The 200-km-long undersea cable (USC) project will connect Italy and Tunisia with a transfer capacity of 600 MW. The project will link Partanna town in Sicily, Italy, with Cape Bon peninsula on the Tunisian coast.

NA

600

2027

Italy–Greece

Interconnector

The project involves the construction of a new 500 MW, 200 km long HVDC undersea cable to double the current exchange capacity between the two countries and encourage greater integration of renewable sources.

±400 kV

750

2030

Note: The project is in the pre-commissioning phase. 

Source: Terna; Global Transmission Research

 

 

 

Table 2: Terna’s key domestic projects for transmission

Name

Scope of work

Voltage

Cost (EUR million)

Status

Colunga–Calenzanoline

This entails the construction of an 84-km transmission line between the provinces of Bologna and Florence.

380 kV

170

2021*

Bisaccia–Deliceto line

This entails the construction of a 35-km line between the provinces of Avellino and Foggia.

380 kV

40

2021*

Paterno–Pantano-Priolo line

This involves the construction of a 60-km line between Catania and Syracuse, which will increase the safety and flexibility of the grid and will lead to the decommissioning of over 150 km of old overhead lines.

380 kV

70

2022

Foggia−Villanova line

This entails the construction of a 178-km transmission line between Foggia, Gissi and Villanova.

380 kV

397

2023

Sorrento peninsula grid redevelopment

This includes the redevelopment and reorganisation of the 150 kV electricity grid, allowing Terna to eliminate almost 60 km of obsolete overhead power lines.

 

150 kV

 

NA

 

NA

Chiaramonte Gulfi–Ciminna line

This will involve the construction of a 170-km line through the provinces of Agrigento, Caltanissetta, Catania, Enna, Palermo e Ragusa. It will be the first very high voltage connection in the western part of Sicily.

380 kV

300

2025

Tyrrhenian Link

This link will be set up between Campania, Sicily, and Sardinia. The link will affect the substations of Villasor in Sardinia and Ciminna in Sicily.

±500 kV

 

3,700

2028

Adriatic Link

This will involve the construction of a 280-km undersea HVDC link between Abruzzo and Marche to integrate wind power and photovoltaic power produced in southern Italy with the consumption centres in the north.

NA

1,000

2028

Bolano–Paradiso 2 line

A new link will be set up between Sicily and Calabria, which will allow the exchange of electricity between the island and the continent to be increased to a total of 2 GW.

380 kV

100

After 2025

Montecorvino–Benevento line

A new 70 km line will be set to help eliminate grid congestion in Campania and in the South in general.

380 kV

NA

After 2025

Aliano–Montecorvino line

This will involve the construction of a new 380 kV power line between Basilicata and Campania,necessary for the reduction of inter-zonal congestion and the integration of renewable sources.

380 kV

230

After 2025

Note: * Under construction with scheduled commissioning by end-2021.

Source: Terna; Global Transmission Research

 

 

Figure 1: Key planned transmission projects in Italy’s 2021 Development Plan

Source: 2021 Development Plan