Three Italian Power and Utilities Firms Form Partnership to Build Italy-Slovenia Interconnection Lines

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Researched by Industrial Info Resources (Sugar Land, Texas)--Italy's three leading power generating and utility companies, Acegas-Aps SpA (BIT:AEG) (Trieste), Enel SpA (BIT:ENEL) (Rome), and TEI SpA (Milan), have formed an alliance to create Adria Link Srl (Gorizia). The new company will build and operate interconnecting power lines between Italy and Slovenia as per the provisions in the Scajola Decree, which aims to promote energy trade and efficient power usage between European Union countries. According to the memorandum of association, the companies will hold equal shares in Adria Link. Enel will appoint the managing director, and the chairman position will be held in rotation by Acegas-Aps and Tei.

Adria Link plans to develop two interconnection projects between Italy and Slovenia. This includes the construction of two underground power lines to connect Zaule station in the Italian province of Trieste with Slovenia's Dekani station, and the Redipuglia station in the Italian province of Gorizia with Slovenia's Vrtojba station. The lines will require an investment of about $40 million and will be capable of transferring 250 megawatts (MW). Part of the project investment will go toward minimizing environmental impact.

The project is a significant milestone in promoting cross-border energy trade and in improving Europe's overall energy infrastructure. The two underground lines will be linked to the National Transmission Network for enhanced operational efficiency and security. The proposed plan is to build the new power line infrastructure along existing roads and make them invisible once the work is complete. The projects have received energy approval from Slovenia's Ministry of Energy while in Italy they are in the latest stage of seeking local permits from the Friuli Venezia Giulia region. Further, the response from both the countries' power operators has been encouraging.

Enel is Italy's largest electricity company and the second largest utility company in Europe. The firm operates in 22 countries across Europe, North America and Latin America with a total installed capacity of about 83,000 MW. The company generates and distributes electricity and gas. Enel has a strong presence in Central and Eastern Europe, including Bulgaria, Slovakia, Romania and Russia. Enel has a 51% market share in Romania's distribution market while it operates an 840-MW facility in Bulgaria. Enel's current portfolio in the region has been built through key acquisitions.

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