Core business

TELAT-Terna plant transfer for NTG development and upgrade purposes

On 11 March 2010, TELAT transferred certain transmission plant to the parent Terna in order to complete the development and renewal of the NTG in the Operational Territories of Milan, Padua, Florence and Naples. In particular, pursuant to art. 6 of Presidential Decree 327/2001, the Ministry of Economic Development only delegates expropriation powers to Terna, as the concession holder for transmission and dispatching services. The total consideration, equal to the market value of the plant transferred, was about € 21 million.

The new “electricity bridge” across the Strait of Messina (2)

On 7 July 2010, the last segment of the “Sorgente-Rizziconi” line between the Regions of Sicily and Calabria received the final approval from the Ministry for Economic Development. The planned investment for the “electricity bridge” across the Strait of Messina amounts to over € 700 million. The new line will allow for significant savings on the electrical system, strengthening the connection between Sicily and Calabria and solving the congestion issues between the two regions. It will prevent the risk of electrical isolation of Sicily, improving the reliability, safety and quality of the Sicilian electrical system. Also important are the environmental benefits: the new line will allow avoiding about 670 million tons of CO2 emissions a year and approximately 179 km of old and obsolete electricity lines will be removed.

(2) “The project is co-financed by the EU within the scope of the European Energy Programme for Recovery. Terna S.p.A. is the only responsible party for the information contained in it. The EU is not responsible of any use that could be made of the information contained in it”.

Acquisition of Reti Trasmissione Energia Elettrica S.r.l. (Retrasm) and merger by incorporation into TELAT S.r.l.

On 5 August 2010, according to the purchase contract signed on 22 December 2009 and as a result of the approval by the Antitrust Authorities, the subsidiary TELAT S.r.l. finalised the purchase of the entire quota capital of Reti Trasmissione Energia Elettrica ASM S.r.l. (“Retrasm”) from A2A S.p.A. The price amounted to approximately € 28 million. The  stipulation of the agreement occurred after the transfer to Retrasm – by way of the partial demerger of A2A Reti Elettriche S.p.A. (A2A Reti Elettriche), a company entirely controlled by A2A – of the high-voltage lines owned by A2A Reti Elettriche S.p.A. The assets transferred included 108 kilometres of power lines (at 132 kilovolts) and the bays related to these lines which were inserted within the NTG by means of the Decree of the Minister of Economic Development on 26 April 2010. Retrasm – renamed “Rete Trasmissione Brescia S.r.l.”, electricity transmission company, managed and owned a portion of the Rete di Trasmissione Nazionale (NTG) totalling approximately 288 km of lines and relative bays, and a 220/130 kV power station.
In November 2010 the incorporation of Rete di Trasmissione Brescia S.r.l. into TELAT S.r.l. took effect, in accordance with that envisaged by the merger project (approved on 22 September 2010 by the board of directors of the companies involved by the merger) with the cancellation of all shares of the incorporating company and with no share exchange ration nor any cash compensation. The merger aims to improve operations of the Terna Group, increasing synergies for the pursuit of greater efficiency and a reduction in administrative costs. 

Terna joins the DESERTEC Industrial Initiative

On 30 September 2010, Terna S.p.A. subscribed, through a capital increase, the entrance into the ownership structure of DESERTEC Industrial Initiative (“DII”), a company   incorporated under the laws of Germany and with registered office in Munich, with equal shares of 5.6%, as for the other shareholders. The subscription price was € 130,000 (of which € 10,000 for the nominal value and € 120,000 allocated as equity-related reserve). The DESERTEC project aims to study and facilitate the production and transmission of solar and wind power in the areas of the Middle East and North Africa (MENA), both to fulfil local demand and to be destined, in large part, to the European market. 

Terna subscribes a capital increase to join the ownership structure of CASC

On 10 November 2010, Terna subscribed, together with the grid operators of Switzerland (Swissgrid), Austria (Verbund-APG), Slovenia (Eles) and Greece (HTSO), a capital increase of the company CASC (Capacity Allocation Service Company CWE S.A.) in equal shares with the founder members (which include TSO RTE, Tennet, Elia, EnBW and Amprion). CASC is a service company that was founded in 2008 and has its registered office in Luxembourg. In 2011, through a single platform, it will manage and implement the auctions for the allocation of cross border transport capacity between 12 European countries, including Italy. The operation will benefit both the power system concerned and the market operators involved in the auctions, facilitating access procedures to the individual markets. The subscription price for the 8.3% share in the share capital of CASC was € 285,000. 

Terna joins the ownership structure of CORESO

On 26 November 2010, Terna joined the ownership structure of CORESO, a service company incorporated under the laws of Belgium and with registered office in Brussels, holding a 22.485% share. The ownership structure of the company includes the operators of France (RTE), Belgium (Elia) and Great Britain (National Grid), each holding an equal share to that of Terna, and the German operator, 50Hertz Transmission, with 10%. More specifically, CORESO prepares daily forecasts and analyses in real time of energy flows in Central-Western Europe, identifying possible critical issues and duly informing the TSOs concerned in a timely manner. The total value of the transaction was € 281,082.
The share held by Terna in CORESO represents an investment in an associate for the Group. 

Terna constitutes MEDGRID with 19 partners

On 9 December 2010 Terna made an initial payment of € 100,000 toward the constitution of the service company MEDGRID, to be incorporated under French law with registered office in Paris. The company was incorporated on 7 January 2011, together with another 19 partners, all holding equal 5% shares in the share capital. MEDGRID aims to develop and market, in France and abroad, studies and analyses aimed at the establishing and transport of an objective of 20 Giga watts by 2020 of electricity generated from renewable sources, mainly solar, under the scope of the Plan Solaire Méditerranéen (PSM) launched in July 2008 by the Union Pour la Méditerranéen (UPM). Also through its investment in DESERTEC, Terna thus becomes one of the major European industrial operators involved in the study of the production of electricity from renewable sources in the area, and in their integration with European transport grids. 

Purchase of additional shares in the associate CESI S.p.A.

On 20 December 2010 Terna finalised the acquisition from Ansaldo Trasmissione & Distribuzione S.p.A. of the 9% share in the capital of CESI S.p.A. (307,800 shares). As a result of this transaction, Terna’s equity interest in CESI reached 39.906%, which, for the Terna Group, represents an investment in an associate. CESI S.p.A. develops and manages plants and laboratories for tests, studies and experimental research.