Terna, through its Brazilian subsidiary Santa Maria Transmissora de Energia, completed the construction works and brought into operation the new high voltage power line “Santa Maria 3 – Santo Angelo 2” in the state of Rio Grande do Sul, in the southeast of Brazil. The 230 kV power line, 158 km long, is considered of priority importance for the state of Rio Grande do Sul since it will allow the integration into the national transmission grid of the energy produced by the plants from renewable sources, especially the wind plants, present in the south of the country. Currently, Brazil represents the largest energy market in Latin America and the third largest in the world after China and the USA.
The full functionality of the new power line arrives two months ahead of the scheduled date agreed with Aneel (the National Electricity Agency) and just over a year after Terna's acquisition of the thirty-year concessions for the design, construction, operation and maintenance of two infrastructures, which took place as communicated to the market on 26 June 2017, after winning an international tender (called by Aneel). The other work under concession to Terna, which is currently under construction, is a 500 km long 350 kV power line in the state of Mato Grosso (in central Brazil) and whose completion is expected in the coming months. For Terna, the value of the planned investments amounts to around 160 million euro.
“We are very pleased to have put this new line into operation – declared Terna's Chief Executive Officer, Luigi Ferraris – which we completed ahead of schedule initially and which represents an important step in Terna's presence in Brazil. In line with the already announced international investment strategy, this project also allows us to capitalize on the technological know-how gained in our core business, naturally maintaining the risk profile and overall financial commitments unchanged".
As regards the other projects underway in Brazil, the construction activities of the lines and stations relating to the Santa Lucia Transmissora de Energia (SLTE) concession are also expected to be completed by the end of 2018. Furthermore, in the second half of 2018, activities for the implementation of existing projects in Uruguay and Peru will continue. Scouting activities will continue for the identification of further opportunities abroad which may also be developed in partnership and which will be selected through evaluation processes which guarantee a low risk profile and limited capital absorption.
As regards international activities in general, in South America at the moment they are focused on the execution of projects in progress, making the most of the skills acquired by Terna, and in any case characterized by a low risk profile and limited capital absorption. In Strategic Plan a total investment of up to a maximum of 300 million euros is envisaged for international activities and it is expected that they will bring to the group a cumulative contribution in terms of Ebitda of around 150 million euros, an increase of 70 million euros compared to the amount envisaged by the previous floor.
