Context, Management Approach and Objectives

For Terna, finding the right balance between energy requirements and protection of the environment and landscape means finding appropriate solutions to guarantee the country the electricity it needs at the best conditions in terms of reliabilityThe fulfilment of two conditions:• availability: capability to respond, statically and in every moment, to the customers’ global demand for power and electrical energy at the connection points, taking into account planned and forced going off-line of the components of the electricity system; • security: capability torespond to sudden disturbances such as short-circuits or forced loss of components of the electricity system. Thus, this aspect specifically considers transition effects which are not covered by the first criterion., cost and environmental sustainability.

Terna provides an electricity transmissionElectricity transport and transformation activities along the interconnected high- and very high-voltage grid forthe purposes of delivery to customers, distributors, and recipients of self-produced energy. service, and makes use of the high-voltage electricity gridA group of plants, lines and stations for transferring electrical energy and supplying the necessary ancillary services. to achieve this. From an environmental point of view, the most evident impact of this does not lie so much in the use of natural resources or in the emission of pollutants, but rather in the physical presence of the power lines and electricity substations and in their interaction with the surrounding environment, both natural and manmade.

Growing environmental awareness and widespread local opposition to building new infrastructures (a common trait in many industrialized countries, to which Italy is no exception) has in recent years led Terna to devote increasing attention to the needs of the landscape, which often coincide with the need to protect natural environments. The approach that was chosen is that of collaborating with the local institutions (regional, provincial, and municipal authorities, national parks, etc.) with the purpose of considering the environmental needs from the initial phases of planningDefinition of the usage plans, for a specific period of time, for the available means of production andtransmission, in order to satisfy the energy requirements with respect to quality and continuity of service. new power lines and increasingly taking them into account until the implementation phase.

Respect for the environment and the landscape are the foundation on which Terna intends to build a relationship of trust with central authorities (e.g. ministries and sector regulatory authorities) and with local institutions which hold the power to authorize new infrastructures. Therefore, consideration of environmental problems coincides with Terna's interests for implementing its investments in developing the grid, and also with the more general interest of society as a whole for the continuity, safety and efficiency of the electricity service. This approach is used both in Italy and in Brazil, and has implications that are presently more significant in Italy, where the construction of new power lines is an established part of Terna's core business.

A particularly important aspect in this regard is represented by the elimination of existing power lines which have become obsolete by the upgrading of other sections of lines or by the construction of new lines and substations: in these grid upgrading projects, the length (in km) of lines removed is often greater than that of new lines built, with the effect of freeing land from the presence of electrical infrastructures.

In the 2006-2007 two-year period, Terna's attention to its environmental impact also focused on the management of existing systems – power lines, substations and offices. The environmental analysis process and the identification of its most significant aspects was completed; an environmental management system was drawn up that obtained the ISO 14001 certification in December 2007. Certification involves all of Terna SpA’s activities and covers all of the transmission grid (substations and lines) and all of the company’s offices.

The following are some of the most important environmental aspects:

  • the emission of electrical and magnetic fields;
  • the visual impact of power lines and substations ;
  • the impact of the power lines on biodiversity, and specifically on birdlife;
  • hazardous waste and their disposal.

Water usage is not among these significant aspects since it is not part of Terna’s productionGeneration of electrical energy, in any way. process, only marginally for civil uses.

Greenhouse gas emissions are included among the most significant aspects. Terna does not actually generate electricity, and therefore greenhouse gas emissions are not a side-effect of its business; in fact, the company is not subject to the obligations of the Kyoto Protocol nor is obliged to engage in emission trading programmes. Terna's attention to emissions - which involves mainly controlling losses of SF6, a gas present in a number of substation devices, and controlling the emissions of the company fleet cars - is the effect of a general overall sensitivity to, and concern for, the problem of climate change. It is also worth mentioning that the investments planned in the electricity grid developmentWorks on the electricity grid which lead to the adjustment or upgrading of the transport, transformation,connection and interconnection capacity, or an increase in operating flexibility of the grid, or the removal ofgrid elements. plan could also have positive indirect effects on emission reductions by the National Electricity SystemThe national electricity system comprises the total of production plants, transmission and distribution grids,auxiliary services and interconnection and dispatching devices located in the Italian territory..

To address all these aspects, Terna is conducting a detailed monitoringAll the actions through which the current operational status of an electricity system is ascertained. on the basis of new procedures defined by the management system that will also enable defining performance objectives. The principal environmental data available are already expressed in the G3 Indicators of environmental performance given in this section and in the additional “Tables of indicators”. In a number of cases, the quality of this data, in particular data based on estimates, will be improved by the new environmental management system.

Regarding improvement plans, attention is continuing to be devoted to the reduction of emissions through feasibility studies and projects on SF6 losses and on the stations’ electricity consumption, while the implementation of collaboration projects with leading environmental associations on biodiversity is the main objective for 2008. Furthermore, the first assessments concerning the possible expansion of the environmental management system to the company’s operations in Brazil will be carried out.

Environmental policy is part of the Management System and is based on a specific condition: the search for solutions to control the effects on the environment may also imply the adoption of internal rules that are stricter than Law provisions; however, this should not compromise the protection of the other general interests that Terna is required to ensure: safety and continuity of the electricity service, an efficient Electricity System, adjusting the system to the production and consumption needs of the country, and equal access to the grid for operators in the sector.

Based on this condition, Terna's commitments are specifically oriented to the following:

  • when planning grid development investments, taking into account the needs expressed by regional institutions and seeking shared solutions
  • in the construction, management and maintenanceOperations and works for the maintenance or recovery of efficiency, and smooth operation of the electricplants, taking into account any decrease in performance. of the grid, adopting procedures in line with legislation and, where possible, with objectives for reducing the environmental impact
  • in relations with suppliers, requesting gradual introduction of the standards of environmental respect adopted by Terna
  • with regard to electromagnetic fields, strict compliance with the Law and attention to the developments in scientific studies; contribution to a correct representation and understanding of the phenomenon;
  • with regard to biodiversity, commitment to reducing the impact of systems, especially the effects on birdlife, with mitigation measures to be implemented as part of programs agreed with environmental associations (in this regard see also the Indicators EN12 and EN14)
  • with regard to climate change, recognizing the importance of the problem and commitment to action that favors reductions in the emissions of greenhouse gases.

In organizational terms, the environmental responsibility is subdivided among several different company departments. The directions are adopted by the top-management based on indications prepared by the External Relations and Communications Department (Social Responsibility Division) and by the Company Security Department which oversees the environmental management system. The Environmental Department (Grid Planning and Development) takes into consideration the environmental variables during the consultation phase with local bodies; the Engineering department then finds innovative technological solutions to reduce environmental impacts.

Highlight: Disposal of equipment having oils containing pcb

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