Chairman’s message

Chairman’s message

Dear Terna Shareholders and Stakeholders,

2010 was Terna’s best year in terms of accelerating the development of the grid, with over 1,000 km of new power lines and 48 new stations for a total investment of 1,161.7 billion euros. Through these measures, Terna has also provided impetus to employment and growth during a difficult phase of the Italian economy. In 2010, thousands of people worked in Terna's building sites, not counting the activities created by the purchase of goods and other services.

Increasing grid development has a positive impact on the community not only because it improves the efficiency and safety of the electricity system but also because the public benefit that it provides in terms of reduction in the national electricity bill is greater than the investment. It also has a positive impact on the environment, such as a reduction in CO2 emissions due to grid losses reduction, more efficient production assets and the connection to the grid of production plants from renewable sources.
As in the past, and even more so this year, Terna’s commitment was focused on creating value and trust for shareholders and all stakeholders. We believe we have achieved our goal by integrating our core business – energy transmission – with the protection of the environment and territory and with the public interest. It is nothing new: since 2002, Terna has experienced how the sustainable development of the electricity grid can be achieved through the sharing of projects with the territory. In recent years this approach has been extended in an effort to interact with the major environmental organizations.

The vision of a sustainable electricity grid also focuses on pylons, the most distinctive elements in terms of environmental impact, through a search for solutions that take into account their aesthetic dimensions. The pylons designed by Sir Norman Foster have already been installed along the “Tavarnuzze-Santa Barbara” electricity line and are visible near the Scandicci (FIorence) highway exit while in 2010 the engineering phase of the new pylons designed by architect Hugh Dutton of the Rosental Studio – the winner of the international contest ended in 2009 – was started.
As we note Terna’s success, we cannot forget to mention the significant role played by the human resources in our activities. People have, indeed, distinctive technical skills that allow Terna to best fulfill its national interest task. Updating their skills – and providing them with constant training – is a key element in human resource development, as is placing focus on occupational safety which is required by operating activities involving risk, working at several meters above ground and maintaining high voltage power lines.

Our ongoing efforts have led to significant returns for Terna in both its economic results and in terms of sustainability coupled with a steady growth of specialized rating assessments, Terna’s inclusion in the major international stock sustainability indexes and its appreciation by socially responsible investors. There is one award in particular, among many, that I would like to mention because it reflects our way of being: fine professionals who are proud of their work and who have made a contribution to an important solidarity initiative. Terna won the “5th Business Awards for the Environment”, promoted by the Chamber of Commerce of Rome and sponsored by the UNIDO (United Nations Industrial Development Organization) in the “Best cooperation for sustainable development” category, for a project aimed at bringing electricity to Kami (Bolivia), which was undertaken by some employee volunteers: an international initiative for the development of a community in which Terna's specific technical skills have played a significant role.
Technical expertise, focus on results and attention to the community: balancing these factors is our way to create value. It is also because of this that Terna is one of the leading electricity grid operators in the world.

The Chairman