The grid and renewable energy sources: tools for Italy's security and competitiveness

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Electric grid and renewable energy: levers for security and competitiveness of Italy

The electricity transmission network represents one of the strategic infrastructures for the future of energy and the Italian economy.In a situation characterized by the growth of renewable sources and the need to strengthen energy security and independence, the national electricity system is called for to effectively integrate new production from solar and wind systems and storage.This is the picture that appears in the study "Energy Security and Independence: transmission network as a liver for Italian competitiveness", promoted in collaboration with Terna and presented in Rome by Teha Group, which investigates the evolution of the energy mix and the economic effects of network financing.

"The Italian electricity system is evolving on the path of energy transition: by 2025 renewable energy will reach almost 50% of national production, representing the main lever for the country's energy independence and, ultimately, containing energy prices", declared Giuseppina di Foggia, CEO and DG of Terna.Wind and solar, integrated with an appropriate percentage of low-emission programmable generation.Terna is facing increasingly complex challenges, contributing to the country's progress."

In the European panorama, by 2025, solar and wind energy would have reached 30% of electricity production, surpassing fossil fuels for the first time.If all renewable sources were considered, the contribution to total electricity production would be about half of the total.Gigawatts with an increase of 44.3% compared to 2020, while more than 22 gigawatts of renewable energy have already been contracted and are scheduled to be launched next year.

The expansion of renewable energies makes a significant contribution to the country's energy security.Between 2010 and 2024, Italy's energy dependence fell by around nine percentage points.Despite these advances, the electricity system continues to be exposed to the volatility of natural gas prices, which will continue to determine the price of electricity for more than 60% of hours in 2024.In this context, expanding and strengthening the transmission network plays a crucial role in integrating new renewable energy generation and making the system more flexible.

The power grid is not only infrastructure, but also the power of the energy revolution.Its development can connect new plants, improve the exchange of energy between different parts of the country and strengthen the connection with foreign countries, while at the same time helping to control the cost of electricity and ensure the stability of the system.According to this study, every euro invested in telecommunications will produce the same results as 2.98 euros for the production cost and 1.31 euros for the national product.

In total, the investments provided by Terna's industrial plan over a five-year period will generate approximately 35 billion euros in production value and 16.2 billion euros in gross domestic product, while favoring the creation of an average of 40 thousand jobs per year.

Italian electricity is recognized today for its high quality and good service, as well as one of the most competitive prices in Europe.In 2024 the price of the transmission will be 11.2 euros per megawatt hour, lower than recorded in France, Spain and European average.This result is also related to the good planning of the investments needed to integrate the new renewable capacity, with a lower cost per gigawatt compared to the main European countries.

However, the development of a power system with an increasing number of renewable energy sources introduces new operational challenges.

The generation of solar and wind is variable by nature and requires adequate equipment to guarantee the stability of the grid, especially in the regulation of frequency and voltage.To solve these problems, investments in infrastructure, digital technology, skills and human resources are necessary, as well as the development of security systems and flexible solutions.

From this point of view, the 10-year development plan of the state grid foresees a total investment of 23 billion euros until 2034. These interventions will increase the energy exchange capacity by about 15 GW and will further strengthen international ties and strengthen Italy's role in the European energy market.

Therefore, in the short and medium term, renewable sources are a fundamental tool for improving energy security and maintaining energy costs.Looking at the medium-long term, between 2040 and 2050, the study emphasizes the importance of maintaining a balanced mix between solar and wind energy and combining renewable energies with a limited quota of programmable low-emission technologies, calculated at between 10 and 15% of generation.This type of combination provides economic stability, security of the electricity system and it will allow to guarantee the stability of energy supply at the same time, strengthening the role of the transport network as a basic lever for the country's competitiveness.