Italian power transmission system operator Terna has signed debt agreements totalling €1.5 billion ( US$1.28 billion ) with the European Investment Bank ( EIB ), Intesa Sanpaolo, and SACE to support the development and construction of the Adriatic Link, a submarine power cable linking the Italian regions of Marche and Abruzzo.

The project will strengthen energy exchange in central Italy and promote the integration of renewable energy sources, Terna says.

The debt package is structured in three tranches: a €750 million loan granted by the EIB to Terna, with a duration of 22 years; a €500 million credit line provided by Intesa Sanpaolo to Terna, with a duration of seven years; an additional €250 million loan from Intesa Sanpaolo, with funding made available by the EIB and a duration of seven years. The loans are covered by SACE’s Archimede guarantee for an amount exceeding €1 billion.

The Adriatic Link is strategically important for Italy’s power grid and is part of the country’s national energy and climate plan. It will strengthen energy exchange in central Italy, meeting the security and flexibility needs of the national power grid as well as renewable energy development and integration targets.

The high-voltage direct current ( HVDC ) line will be 251 kilometres long, of which 210 kilometres will be submarine cable at a maximum depth of 100 metres. It will have a nominal active transmission capacity of 1 000 megawatts, and will link the Fano ( Province of Pesaro and Urbino ) and Cepagatti ( Province of Pescara ) electrical substations.

The cable will be underground or under the seabed for the entire route, minimizing the impact on the region. Work on the land began late last year.