Fid Financial Close

On 28 May 2024, EDF and Terna finalised the main contractual arrangements for the Sa.Co.I.3 HVDC interconnection, effectively reaching the Final Investment Decision for the project. EDF signed a long-term cross-border cost-sharing contract with Terna for the Sardinia-Corsica-Italy link and simultaneously awarded construction contracts covering the Corsican scope, while Terna concurrently awarded the main EPCI contracts — to Prysmian Group for the two HVDC submarine cable systems (105 km Suvereto-Lucciana + 16 km Lucciana-Codrongianos at 200 kV, two poles each) and, a few days later on 31 May 2024, to Hitachi Energy for the three HVDC converter stations (Suvereto in Tuscany, Lucciana in Corsica and Codrongianos in Sardinia). As with other TSO-led interconnections (e.g. Cyclades Phase D and Bay of Biscay), Terna has no traditional external project-finance FID moment; the combined EPCI contract signings and the EDF-Terna cross-border cost agreement together commit the capital and function as the effective financial close for the SACOI 3 programme, which is financed through Terna's regulated CAPEX with ~45.5% contribution from EDF under the ARERA/CRE cross-border cost allocation arrangements and partial REPowerEU co-funding.