€1.5 Billion Deal Seals Development of Adriatic Link for Italy’s Energy Grid

The Adriatic Link is a high-voltage direct current (HVDC) electricity transmission project designed to bolster Italy’s national grid, especially in the central regions.

In a landmark move to strengthen Italy’s energy infrastructure and support its transition to renewable power, the European Investment Bank (EIB), Terna, Intesa Sanpaolo (IMI Corporate and Investment Banking Division), and SACE have formalised a financing agreement worth €1.5 billion for the construction of the Adriatic Link—a cutting-edge submarine power cable connecting the Italian regions of Marche and Abruzzo.

The signing ceremony, held in Rome, brought together leaders from the four institutions, including EIB President Nadia Calviño, EIB Vice-President Gelsomina Vigliotti, Terna CEO and General Manager Giuseppina Di Foggia, SACE CEO Alessandra Ricci, and Riccardo Dutto, Head of Industry Infrastructure at Intesa Sanpaolo’s IMI division.

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What Is the Adriatic Link?

The Adriatic Link is a high-voltage direct current (HVDC) electricity transmission project designed to bolster Italy’s national grid, especially in the central regions. With a total cable length of 251 km, including 210 km laid under the seabed at a depth of up to 100 metres, the project will connect the Fano substation (Province of Pesaro and Urbino) with the Cepagatti substation (Province of Pescara).

The infrastructure will have a transmission capacity of 1,000 MW, helping to integrate growing levels of renewable energy into the national system while ensuring grid stability, reliability, and flexibility. The cable will be laid entirely underground or under the sea, thus minimising environmental impact and preserving the integrity of the coastal and inland landscape.

Approved by Italy’s Ministry of the Environment and Energy Security in January 2024, the project officially began groundwork later that year and is considered one of the most strategic energy infrastructure initiatives in the country’s National Energy and Climate Plan (NECP).

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Structure of the €1.5 Billion Financing Package

The financing operation is composed of three key tranches, all of which are underpinned by SACE’s Archimede guarantee, which covers over €1 billion of the total funding:

1. €750 million loan from the EIB to Terna, with a 22-year tenure

2. €500 million credit line from Intesa Sanpaolo, with a 7-year tenure

3. An additional €250 million loan from Intesa Sanpaolo, backed by EIB funding, also with a 7-year tenure

This structure demonstrates the robust public-private collaboration model that is central to building next-generation energy infrastructure in Europe.

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Strategic Importance for Italy and Europe

The Adriatic Link is expected to play a crucial role in:

• Strengthening interregional energy exchange in central Italy

• Supporting the integration of solar, wind, and other renewables

• Enhancing grid stability and national energy security

• Stimulating local economic development, particularly in EU cohesion regions

EIB President Nadia Calviño called the project “key to boosting a more stable and safer energy market,” while Vice-President Gelsomina Vigliotti highlighted the EIB’s mission to “mobilise both public and private sector resources to promote strategic autonomy and accelerate the energy transition.”

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Voices of the Stakeholders

Giuseppina Di Foggia, CEO of Terna:

“This financing affirms the strategic value of our grid infrastructure. It reflects Terna’s mission to promote renewable energy integration and improve Italy’s energy autonomy. SACE, Intesa Sanpaolo, and EIB’s support confirms the high economic and social value our work brings to the country.”

Terna’s updated 2024–2028 business plan, announced earlier this year, includes substantial investments in grid digitisation, interconnectors, and storage, reflecting the sector’s transformation toward decarbonisation and resilience.

Mauro Micillo, Chief of Intesa Sanpaolo IMI:

“We’ve always believed in the power of public-private cooperation. Our involvement in the Adriatic Link demonstrates our long-term commitment to sustainability, infrastructure modernisation, and strategic investments that uplift both communities and the national economy.”

Alessandra Ricci, CEO of SACE:

“The Archimede guarantee reflects our mission to support innovation and help shape a more resilient, integrated energy future. This project highlights our role as a key enabler of infrastructure development in Italy.”

SACE’s Archimede guarantee is designed to support green and strategic sectors, reinforcing Italy’s position in climate-oriented infrastructure investments and fulfilling EU objectives tied to the Green Deal and NextGenerationEU.

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Economic and Environmental Impact

The Adriatic Link is poised to generate positive ripple effects across multiple dimensions:

• Cohesion Region Development: The project directly impacts economically less-developed regions, enhancing employment and technical capacity in central Italy.

• Energy Transition Acceleration: By unlocking renewable capacity and facilitating long-distance power transfers, the link supports the EU’s Fit for 55 and REPowerEU targets.

• Environmental Stewardship: By remaining completely underground or submarine, the cable minimises ecological disruption, preserving both marine ecosystems and terrestrial habitats.

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A Model for Future Infrastructure Partnerships

This financing agreement serves as a model blueprint for energy transition financing, combining:

• Multilateral development bank support (EIB)

• Commercial bank participation (Intesa Sanpaolo)

• Public guarantee mechanisms (SACE)

• Strategic infrastructure operators (Terna)

It represents a holistic and scalable approach to financing large-scale sustainable infrastructure projects across Europe.

As the world grapples with energy security, climate goals, and rising electricity demand, the Adriatic Link is a shining example of how vision, innovation, and collaboration can power a greener and more secure future.