Terna plans EUR3.5bn investment to modernise Sicily’s electricity grid by 2034

The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.

Share:

Terna SpA presented in Palermo its new 2025-2034 ten-year plan aimed at transforming Sicily’s electricity grid with an investment of EUR3.5bn ($3.77bn). This is the highest amount allocated to any Italian region for this period, illustrating Sicily’s central role in the national energy infrastructure strategy. The plan was unveiled in the presence of the new Regional Energy Councillor, Francesco Colianni, with a focus on coordination between Terna and local authorities to ensure grid security and transport capacity.

Strategic investments and new projects
The flagship project of the plan is the Tyrrhenian Link, a double 500 kV direct-current submarine cable connecting Sicily to Campania in the east (490 km) and to Sardinia in the west (480 km), with a transmission capacity of 1,000 MW per branch. Installation of the eastern branch cable, spanning 490 km, was completed in May 2025, reaching a record depth of 2,150 metres for Italian infrastructure. According to Terna, this project is designed to meet growing demand for renewable energy integration while limiting grid congestion.

Terna states that installed renewable energy capacity in Sicily must increase by 10.48 GW by 2030 compared to 2021, in order to meet national burden sharing objectives. Connection requests to the high-voltage grid in the region stand at 81 GW for renewable installations, with a further 53 GW for storage.

Grid modernisation and interconnections
Beyond the Tyrrhenian Link, the plan includes two new 380 kV lines between Chiaramonte Gulfi and Ciminna (172 km), and between Caracoli and Ciminna. The first will connect the east and west of the island, enabling increased energy exchanges, while the second will strengthen the internal grid’s connection to the Tyrrhenian Link, improving supply security in western Sicily. In parallel, the Partinico–Fulgatore line (220 kV) will contribute to system stability.

In eastern Sicily, work is underway on the Paternò-Pantano-Priolo line (63 km), crossing the provinces of Catania and Syracuse. Commissioning this line will allow for the dismantling of 155 km of old lines and the removal of 400 pylons, freeing up 300 hectares.

Training and international-scale projects
To support the energy transition and develop specialised skills, Terna launched a Master’s programme in “Digitalisation of the electricity system for the energy transition” as part of the Tyrrhenian Lab, in cooperation with the universities of Palermo, Cagliari, and Salerno. To date, 60 Sicilian students have been hired by Terna, with this number expected to reach 80 following the launch of the fourth edition in June.

Other major projects include Elmed, a 200 km submarine interconnection between Italy and Tunisia, built in partnership with the Tunisian Company of Electricity and Gas (Société Tunisienne de l’Électricité et du Gaz, STEG). Integrated into the Mattei Plan for Africa, this project aims to foster renewable integration and strengthen security of supply between Europe and Africa.

Operation of Sicily’s grid currently relies on three main 380 kV lines, a 220 kV ring, and several interconnection projects, including the Bolano-Annunziata submarine cable between Sicily and Calabria, recently authorised by the Italian Ministry of the Environment and Energy Security. This will bring interconnection capacity to 2,000 MW between the island and the mainland.

Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.
Asia dominated global new renewable energy capacity in 2024 with 71% of installations, while Africa recorded limited growth of only 7.2%, according to the latest annual report from IRENA.
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.