Terna update the Business Plan 2021-2025 "Driving Energy" and focus on investments, concentrating them above all on regulated activities in Italy, which will continue to represent the group's core business. The board of directors of the company that manages the national electricity transmission grid has put the goal of reaching 10 billion euros of investments, Of which 1,7 already this year, to "accelerate the commitment to serve the country for the ecological transition, energy independence and decarbonization", he says in a statement.
These investments will not compromise however the solidity and sustainability of the capital structure: Terna intends to maintain the current rating level, a cost of net debt of 1,3% and a net debt / RAB ratio of around 60% by 2025.
“A significant increase in investments for the development and modernization of the electricity grid, a further strengthening of Terna as director of the energy transition, an even more sustainable future free of polluting emissions, an action aimed at promoting greater energy independence of the country thanks to a more incisive development of renewable energies: these are the objectives we have set ourselves and which are the basis of the update of the 2021-2025 Business Plan", commented the CEO, Stefano Donnarumma.
Terna, 2025 Plan: Ebitda up to 2,14 billion
Terna expects revenues to 2025 growing to 3,08 billion euros and a EBITDA to 2,14 billion euros, with an average annual growth (CAGR) of over 4% for revenues and over 3% for EBITDA. This year, in particular, revenues are expected to grow to €2,74 billion and EBITDA to €1,9 billion.
THEnet earnings per share (EPS) will stand at 39 eurocents in 2022 and 45 eurocents in 2025 (net of ongoing valuation of international assets).
With regard to the dividend policy, from 2022 to 2023 the forecast of a CAGR of the dividend per share (DPS) of 8% is confirmed, compared to the dividend for 2021. For the years 2024 and 2025, the forecast is confirmed of a payout of 75% , with a guaranteed minimum dividend equal to the dividend pertaining to the 2023 financial year. Terna will propose to the shareholders' meeting on 29 April the distribution of a dividend of 29,11 euro cents per share, 8% more than to 2020.
“The goals we are setting ourselves represent our concrete commitment from both an industrial and an institutional point of view – he continued Donnarumma – Terna is in fact a company that performs a public service for the country and for the community, for the benefit of all the territories in which it operates and the environment. Our investments, which are essential for achieving the goals that Italy and Europe have set for themselves, will make it possible to enable the integration of renewable sources and the electrification of consumption, as well as guarantee ever greater security and efficiency of supply, the adequacy of the system and the highest levels of service quality, at the lowest cost for citizens and businesses”.
Terna, 2025 Plan: interventions for the development of renewable sources
Terna's interventions, which by their nature are 99% sustainable, will be aimed at development of renewable sources, with energy transport backbones from the production points (which will increasingly be located in the regions of southern Italy) towards the centers of greater consumption in the north. To achieve this key objective, the company aims to resolve current network congestion and further develop interconnections with foreign countries.
In this regard, Terna has planned the creation of new connections with France, Austria, Tunisia and Greece, which are added to the 26 cross-border lines already active and which will allow our country, by virtue of its strategic geographical position, to strengthen its role as electricity hub for Europe and the Mediterranean area, becoming a leading player on an international level.
Also on an international level, Terna recently confirmed its position exit from business in South America, while now confirming the strategic assessments of opportunities that can also be developed in partnerships that guarantee a low risk profile and limited capital absorption, such as that of the United States.
Investments: 9,5 billion to strengthen the national electricity transmission grid
Terna plans to invest 9,5 billion euros to develop, modernize and strengthen the national electricity transmission grid. In particular, investments for the development of the national electricity transmission grid will increase to 5,6 billion euros and will be linked mainly to the construction of high voltage direct current lines - to resolve grid congestion, increase transport capacity between the different market areas, fully integrate renewable sources and improve the quality of service - as well as the construction of submarine cable connections.
The main project consists of the Tyrrhenian Link, the power line which will link Sardinia, Sicily and Campania and which will contribute to the development of renewable sources and the abandonment of coal and more polluting oil plants. Other projects include the Sa.Co.I.3, the Sardinia-Corsica-Tuscany interconnection, and the 'Colunga-Calenzano' line between Emilia-Romagna and Tuscany.
Thanks to the planned investments, the value of regulated assets (RAB) will reach 22,7 billion euros in 2025, with a CAGR over the period of the Plan equal to 7%. At the end of 2022, the RAB will be equal to 17,9 billion euros, while at the end of 2021 the figure stood at 16,9 billion euros.
for renewal activities and asset efficiency, which concern the rationalization of existing infrastructures, with the replacement - where technically possible - of overhead lines with the laying of underground cables, Terna will invest 2,6 billion euros, while 1,3 billion will be invested in Security Plan, aimed at strengthening and enhancing the technical and technological functions of the electricity system.
From unregulated activities contribution to Ebitda of 450 million
In the area of Non-Regulated Activities, Terna expects a contribution to the group's EBITDA of over 450 million euros accumulated over the course of the Plan, with activities related to connectivity offers, also in partnership, for telecommunications operators, industrial activities in the field of both transformers and energy solutions services, energy efficiency for industrial customers and O&M activities for photovoltaic systems, also through the use of satellite technology and innovation for data collection and analysis.
To respond to the growing complexity of the system, Terna will dedicate approx 1,2 billion euros of investments to digitization and innovation.
Looking at 2030 decarbonization goals set by the European Green Deal, around 60-70 GW of wind and PV are expected to be installed by that date. This means that the share of gross electricity consumption covered by green sources will have to reach 65%. It will therefore be essential to accelerate the construction of renewable energy plants, including off-shore ones, by simplifying the authorization processes as much as possible. As envisaged by the PNIEC, it will also be necessary to accelerate the development of hydroelectric and electrochemical storage systems, for a capacity of approximately 10 GW by 2030.
