Italy’s energy infrastructure is being redesigned for a system that will rely on more electricity, more variable renewable generation, and a broader range of import routes. It already has electricity links across the Alps and Mediterranean, a large gas network, underground storage, LNG terminals, and major port facilities. Its main infrastructure challenge is no longer basic access. It is the need to move greater volumes of renewable electricity from the south and the islands toward industrial and urban demand centres, while maintaining reliability as fossil-fuel generation plays a smaller role.
Italy’s Grid Must Connect Two Different Energy Geographies
Italy’s electricity system has a clear geographic imbalance. Much of the country’s strongest solar and wind potential is located in Sicily, Sardinia, Puglia, Calabria, and other southern regions. A large share of electricity demand, however, is concentrated in the industrial north. Existing transmission constraints can limit the amount of renewable power that moves between market zones, especially when solar and wind output is high.
This makes transmission central to Italy’s energy transition. Renewable sources supplied about 41% of Italian electricity demand in 2025. Solar generation reached a record 44.3 terawatt-hours, and the country added about 7.2 gigawatts of new renewable capacity during the year. Electricity consumption remained near 311 terawatt-hours, while imports covered around 15% of demand.
New renewable plants can be built faster than major transmission corridors. Without stronger internal links, Italy may face more congestion, curtailment, and regional price differences. Grid development therefore determines how much renewable capacity can be used effectively.
Terna’s 2025–2034 development plan provides for more than €23 billion of investment in the national transmission network. The plan is designed to integrate at least 65 gigawatts of additional renewable capacity by 2030, improve transfers between domestic market zones, and increase cross-border exchange capacity. Terna expects the planned projects to add around 7 gigawatts of internal exchange capacity by 2030 and raise total transport capability substantially over the following decade.
Subsea Cables Are Becoming the Backbone of the National System
Italy’s long peninsula and two large islands make high-voltage direct-current submarine cables especially important. Several of the country’s largest infrastructure projects are designed to move electricity across seas rather than over land.
The Tyrrhenian Link will connect Sicily, Sardinia, and the Italian mainland through two major undersea cable sections. It is intended to strengthen the security of the island systems, allow more renewable generation to reach the mainland, and reduce the need for local thermal generation. It is particularly important for Sardinia, where lower conventional generation requires stronger external connections.
The Adriatic Link is designed to increase transfer capacity between central and southern Italy. By linking Abruzzo and Marche through a submarine and underground system, it should relieve pressure on existing lines along the Adriatic corridor and help move power from renewable-rich southern regions toward northern demand.
The Sa.Co.I.3 project will modernize the connection among Sardinia, Corsica, and Tuscany. Other planned links include additional capacity with Montenegro and Greece, strengthening Italy’s role in the European market.
The ELMED interconnector between Sicily and Tunisia adds a different dimension. It would create the first direct electricity connection between Italy and North Africa, supporting two-way trade and linking the European and North African systems. Its value will also depend on the ability of the Sicilian grid to handle additional flows.
Storage and Digital Control Are Becoming Essential Infrastructure
A system with large solar output must manage rapid changes between midday production and evening demand. Italy has extensive pumped-hydroelectric capacity, but the future system will also require batteries and other forms of storage. Terna’s planning scenarios identify a need for around 71.5 gigawatt-hours of new storage by 2030, excluding existing pumped storage.
Installed battery-storage power expanded during 2025, reaching nearly 18 gigawatts according to Terna data. Much of this capacity is distributed among household and commercial systems, while larger utility-scale facilities are expected to become more important. A national procurement mechanism is intended to support storage that can shift energy across several hours and provide grid services.
Digital infrastructure is developing alongside physical assets. Modern controls, forecasting, smart meters, and automated substations help operators manage distributed generation, batteries, vehicles, and flexible loads. Cybersecurity has also become part of infrastructure planning because digital systems increase both operating capability and exposure to disruption.
Distribution networks will carry much of this burden. Rooftop solar, heat pumps, charging systems, and local storage connect below the national transmission level. Upgrading local transformers, medium-voltage lines, and control systems will determine whether electrification can expand without creating new bottlenecks.
Gas Infrastructure Still Provides Security and Flexibility
Italy’s transition is not based on electricity infrastructure alone. Natural gas remains important for heating, industry, and dispatchable power generation. Snam operates an extensive transmission network across Italy, supported by storage sites and connections to international pipelines. The wider Snam system includes about 40,000 kilometres of network in Italy and abroad, while its storage business represents roughly one-sixth of total European Union capacity.
Italy has worked to diversify gas supply since the sharp decline in Russian pipeline deliveries after 2022. Pipelines from Algeria, Azerbaijan, Libya, and northern Europe now operate alongside a larger LNG system. Regasification capacity has expanded through terminals at Panigaglia, Rovigo, Piombino, and Ravenna, giving the country more flexibility to purchase gas from global suppliers. Snam’s managed or co-managed regasification capacity is estimated at about 28 billion cubic metres per year when the Ravenna facility is included.
Storage is equally important. Italy can inject gas during lower-demand periods and withdraw it during winter or supply disruptions. This supports domestic security and the wider European market.
The long-term role of this network is changing. Gas demand is expected to decline as buildings electrify and renewable power expands, but parts of the system may be adapted for biomethane, hydrogen, or carbon dioxide transport. The economic case will vary by corridor. Italy’s advantage is that it already has a large, connected network that can be adapted selectively rather than built from the beginning.
Interconnection Supports Italy’s Position as a Mediterranean Energy Hub
Italy has electricity connections with France, Switzerland, Austria, Slovenia, Greece, Malta, and Montenegro. Terna reports 30 international interconnection lines with about 12 gigawatts of nominal capacity already in operation. Imports have historically helped Italy balance domestic demand and benefit from lower-cost generation elsewhere in Europe.
Future connections are intended to make the system more flexible and less one-directional. Stronger links with the Balkans and North Africa could support two-way renewable electricity trade between regional markets. Terna’s development plan aims to increase cross-border capacity by around 40% compared with current levels.
Italy’s energy infrastructure is therefore moving toward a more integrated model. Transmission projects must relieve north–south congestion, island links must support renewable development, storage must balance variable generation, and gas assets must provide security while adapting to lower fossil-fuel use. The country already possesses the physical foundations of a European and Mediterranean hub. Its next test is whether planning, permitting, grid construction, and market reform can move quickly enough to keep pace with the generation projects seeking connection.
