Terna and photovoltaic power

As illustrated in the section on “Significant events”, in order to make most effective use of its resources and maximise returns on its assets, Terna commissioned its subsidiary SunTergrid to build and manage photovoltaic systems with total capacity of around 100 MWp on sites where no installations exist, adjacent to transformation stations leased by the Parent.
By the end of the year, the new business is only up and running to a minimal extent. One plant has entered service (at Ragusa, on December 28, 2009), after investments were made in the final quarter of 2009. Applications for authorisation are underway for the other construction projects (around 71 of which are scheduled to be in service by the end of 2010), and are at various stages of progress. Investments exceeding €300 million are planned by the end of 2010.

Energy generation in 2009 was negligible, and will only really take off starting in 2010. The electricity generated will be withdrawn and priced by GSE S.p.A., in accordance with the dedicated withdrawal mechanism envisaged under the energy account, guaranteeing the full neutrality of Terna with respect to the sale of the power on the electricity market.
The Parent is responsible for the operational management of SunTergrid pursuant to an ad hoc service agreement which provides the Company with corporate support and advice, and in the name of and on behalf of the subsidiary commissions Terna to manage all work necessary and appropriate to developing and modernising SunTergrid’s plants (i.e. applications for authorisation or provisions of any nature, tendering processes, contract management and payments). Terna will be using its own internal resources for this, as well as drawing on services and materials acquired from third parties, and then claim back the associated costs from SunTergrid.

As part of an internal reorganisation process conceived to optimise the resources and potential of new photovoltaic power generating operations, in December 2009 SunTergrid founded a new company, Rete Rinnovabile S.r.l. (hereafter also known as “RTR S.r.l.”), as a vehicle to take over all projects likely to become operational by the end of 2010. As explained in the "Subsequent Events" section, where more information is available, effective from February 1, 2010, SunTergrid transferred to RTR the business unit consisting of plants for generating power from renewable resources for internal consumption or sale, and all activities and contractual relationships pertaining to the planning, construction, management, development and maintenance of these plants.