On March 1, 2019 Italian TSO’s for resp. Electricity and Gas, Snam and Terna have signed a memorandum of understanding to define and implement common initiatives, in particular on research, development and innovation and on the possible convergenses between electricity system and gas system. Recently the Dutch/German  TSO’s TennEt and Gasunie presented their first joint Infrastructure Outlook 2050.

The areas of activity covered by the agreement, to be developed observing the relevant legislative and regulatory framework, regard in detail, among other things:

• the development of shared national and European energy scenarios for the preparation of the respective ten-year investment plans;
• taking advantage of the convergenses between electricity system and gas system in the context of the Snam project for converting its compression and storage plants into “dual energy” gas-electric plants with significant benefits in terms of increased flexibility of the services rendered and reduction of environmental impact;
• research and development initiatives with particular reference to the use of programmable renewable sources for electricity generation and to the new coupling sector technologies, aimed at ever-better use of resources;
• the testing and development of innovative technological solutions for analysis and monitoring of the infrastructures, hydrogeological analysis of the territories, monitoring of worksites, joint optimisation of the electricity and gas networks.

“The electricity system is going through a moment of crucial change characterised by an energy transition that involves the whole sector and for which everyone is called upon to do their part”, said Luigi Ferraris, Terna’s Chief Executive Officer. “The agreement signed today goes in this direction and the collaboration between Terna and Snam to define and implement common initiatives strengthens further Terna’s commitment as a protagonist and enabling factor of the transition in progress.”

“The objective of this agreement” commented Marco Alverà, Snam’s Chief Executive Officer, “is to put together the experience and skills of two companies of excellence such as Snam and Terna in a context of growing convergenses between electricity and gas, for the benefit of the Italian energy system. This initiative is a further step in Snam’s change to being the energy company of the future: with the new Snamtec project and the new investments planned in innovation and sustainability – from biogas to energy efficiency, from sustainable mobility to ‘dual energy’ plants – we want to be increasingly protagonists of the energy transition”.

The agreement will possibly be the subject of subsequent binding agreements that the parties will define observing the applicable regulatory profiles, including those on the subject of related-party transactions.