The loan, with a duration of 22 years, includes a single tranche at a fixed rate of 1.64%.
“We are very proud of the contribution by the European Investment Bank to this project of strategic importance. It will foster the efficiency and security of the European electricity system, as well as the creation of the single electricity market” said Luigi Ferraris, CEO of Terna. “The interconnection with France is a globally unique and innovative endeavour in engineering solutions, combining sustainability and growth as pillars in Terna's investment plan for the country”.
“This operation confirms the commitment of the European Union bank in the crucial sector of electricity grids and further strengthens its fruitful partnership with Terna: in the last few years we have supported the company in key plans for investment in transmission-grid modernisation and development with a total of one billion of loans”, commented Dario Scannapieco, Vice-President of the EIB.
The high voltage electrical interconnection between Piossasco (Italy) and Grand'Ile (France), known as the “Piemonte-Savoia”, provides a total (private and public parts combined) cross-border exchange capacity of 1,200 MW. It is based on the use of unprecedented technology solutions and has been identified by the European Commission as a Project of Common Interest (PCI) at EU level. Totalling 190 kilometres (equally distributed between Italian and French territory), it will be the world’s longest DC underground power line, fully integrated with the transport infrastructure system and effectively “invisible”.
This project also confirms the central role of sustainability in Terna’s investment plans, to the benefit of stakeholders, and is consistent with the growth strategy aimed at combining investment with the goals of maximum-security, minimal environmental impact and lower costs for the system.
The project forms part of the principal EIB lending programmes in the fields of energy and the environment.
After completion of the work – commissioning is expected by the end of 2019 – the “Piemonte-Savoia” power line will be the fourth interconnection between Italy and France and will lead to an approximate 40% increase in exchange capacity between the two countries, strengthening the integration and competitiveness of the electricity market, in line with European strategy. The Italian borders are already amongst the most well connected on the continent, with 25 active electricity interconnections with France, Austria, Slovenia, Switzerland and Greece.
