Powering Italy’s Future with €1.5 Billion Adriatic Energy Link Investment
Italy is charging ahead on its energy transformation journey with a landmark €1.5 billion financing package set to power the Adriatic Link – a vital submarine electricity cable that will bridge the regions of Marche and Abruzzo. Orchestrated by the European Investment Bank (EIB), SACE, and Intesa Sanpaolo, this project represents a bold step toward energy autonomy, grid modernisation, and the seamless integration of renewables.
At the heart of the project lies a 251-kilometre high-voltage direct current (HVDC) transmission line, much of it tucked beneath the Adriatic Sea, connecting substations in Fano and Cepagatti. With a nominal active transmission capacity of 1,000 MW, the Adriatic Link is poised to become a cornerstone of Italy’s green infrastructure.
Strategic Financing for a Sustainable Grid
The financial backbone of the project is structured in three major tranches:
- €750 million loan from the EIB, maturing over 22 years
- €500 million credit facility from Intesa Sanpaolo, spanning 7 years
- €250 million loan from Intesa Sanpaolo, indirectly funded by the EIB, also over 7 years
Each tranche is reinforced by the Archimede Guarantee issued by SACE, covering over €1 billion of the total investment. This public-private alignment showcases how institutional cooperation can catalyse infrastructure modernisation.
“This investment will be key to boost a more stable and safer energy market in the country, improving the national power grid and speeding up the integration of renewable energy sources,” said EIB Group President Nadia Calviño.
Terna Takes the Helm
Spearheading the engineering and delivery is Terna, Italy’s electricity transmission giant. With a vast network of 75,000 km of high-voltage lines and over 900 substations, Terna is no stranger to large-scale projects. The Adriatic Link fits squarely into its 2024-2028 strategic roadmap to reinforce Italy’s energy transition and enhance grid reliability.
Terna CEO Giuseppina Di Foggia highlighted the project’s significance: “The financing signed today with the EIB and Intesa Sanpaolo recognises the strategic value of our network infrastructure, which is vital to promoting the integration of renewable energy sources and increasing Italy’s energy autonomy and security.”
The cable, submerged at depths of up to 100 metres and installed entirely underground or undersea, ensures minimal disruption to local ecosystems and communities. Groundworks began in late 2023, following environmental authorisation by the Ministry of the Environment and Energy Security in January 2024.
Energy Security and Renewables Integration
Italy’s National Integrated Plan for Energy and Climate identifies the Adriatic Link as a strategic enabler for grid security, flexibility, and decarbonisation. It forms part of a broader push to support the EU Green Deal and the bloc’s long-term climate commitments.
“This agreement confirms the EIB’s central role in mobilising public and private sector resources to promote strategic autonomy and the energy transition in Europe,” noted EIB Vice-President Gelsomina Vigliotti.
The link is also a boon for cohesion regions, often underserved in national infrastructure efforts. Its presence is expected to bolster economic growth, foster employment, and enhance energy reliability in central Italy.
The Archimede Guarantee: A Safety Net for Investment
SACE’s Archimede Guarantee has emerged as a linchpin for Italy’s energy ambitions. Covering more than two-thirds of the project’s financing, it reduces risk for lenders and signals strong state support for green infrastructure.
“The Archimede guarantee embodies our commitment to creating value for communities and the whole country,” explained SACE CEO Alessandra Ricci. “We are moving towards more resilient and integrated energy infrastructure capable of responding to global challenges.”
This financial innovation allows stakeholders to tap into international capital markets with greater confidence, a strategy that may be replicated for future decarbonisation efforts.
Private-Public Synergy in Action
Intesa Sanpaolo’s involvement reinforces the critical role of banking institutions in driving sustainable development. As Italy’s largest bank, with €417 billion in loans and a massive footprint across Europe, its clout adds credibility to the project.
“Public-private cooperation is a key element in accelerating the construction of sustainable infrastructure,” said Mauro Micillo, Head of Intesa Sanpaolo’s IMI Corporate and Investment Banking Division. “Our participation in the Adriatic Link confirms our commitment to energy transition and to supporting communities and businesses with high-impact investments.”
The bank’s commitment to provide €115 billion in impact lending by 2025 further underscores its leadership in ESG-focused financing.
The EIB: Financing a Greener Europe
As the EU’s long-term lending arm, the EIB has ramped up its investments to align with the Paris Agreement. In 2024 alone, the EIB Group funded over 900 projects worth €89 billion. Around 60% of its portfolio supports climate action and environmental resilience.
In Italy, the EIB signed 99 operations totalling nearly €11 billion, unlocking close to €37 billion in real economy investments. Its backing of the Adriatic Link reflects the bank’s focus on cohesion, energy security, and digital modernisation across the EU.
Building a Brighter Tomorrow
With more than 6,100 skilled professionals, Terna is not just building cables – it’s shaping Italy’s energy future. The company is driving progress on multiple fronts: digitisation, smart grid deployment, and the seamless connection of renewable sources.
“The energy transition has given new impetus to investment to modernise and strengthen power grids across Europe,” said Di Foggia. The Adriatic Link, she noted, is a prime example of how smart infrastructure fosters economic and environmental sustainability.
A Model for Future Infrastructure
Italy’s Adriatic Link stands as a blueprint for how nations can scale up renewable infrastructure, modernise their grids, and unlock private and public financing at scale. With construction well underway and completion set for later this decade, its ripple effects will be felt not just in the power sector, but in every corner of society that depends on clean, reliable electricity.
“SACE will continue to be a strategic partner for projects shaping the future of Italy,” added Ricci.
This is more than just a cable under the sea. It’s a lifeline to a low-carbon, resilient, and inclusive energy future.
