Italy, electricity grid under pressure: the challenge of saturation between input and output

Italy is currently facing a twofold challenge with regard to its national electricity grid: saturation not only in terms of input, but also in terms of output. While the difficulty of connecting new production plants – particularly those using renewable sources – due to network capacity limits and infrastructure congestion has been discussed for years, a mirror image but equally critical problem is now emerging: the growing demand for electricity consumption, driven by new and powerful consumption hubs.

Among these, data centres represent the focus of the new pressure on the grid. According to industry estimates, by 2030, Lombardyalone – and in particular the Milan metropolitan area – could absorb several gigawatts of additional power to power cloud computing, artificial intelligence and advanced digital services. Such concentrated increases in demand risk exceeding the available withdrawal capacity in primary substations and high-voltage backbones.

Data centres, which are central to cloud computing, artificial intelligence, financial services and telecommunications, are multiplying in the Milan metropolitan area, attracted by the quality of the infrastructure, connectivity and proximity to major ICT operators. But this development comes at a significant energy cost.

The phenomenon is already emerging in assessments by Terna and local distribution companies, which are detecting bottlenecks and connection requests that exceed installed technical capacity. Unlike traditional power plants or industrial facilities of the past, data centres require constant, stable and high-intensity power, often with demands in the order of hundreds of megawatts per site.

At the same time, electricity demand will be amplified by the decarbonisation of consumption, with the electrification of sectors such as transport, heating and industrial processes. The result is a scenario in which the grid will not only have to accommodate more and more distributed renewable sources, but also distribute energy in a widespread and reliable manner to new demand centres, often located in areas already densely populated with loads.

This scenario makes urgent infrastructure investment, the upgrading of transmission and distribution networks, the adoption of digital solutions for the intelligent management of energy flows and planning consistent with urban and industrial development plans. The balance between electricity supply and demand is no longer just a question of production, but increasingly of the absorption capacity and resilience of the grid.

According to current information, in this context, Terna has considered a mechanism similar to the so-called “Open Season” mechanism, intended for feed-in requests, also for withdrawal requests from new data centres. In particular, during the Open Season period, potential withdrawal users will have to express their interest and commitment to use future capacity. This would not, therefore, be a real auction, but priority would be given to those who first obtain authorisation.

* This article is the second in a series of articles published on virtual network saturation. The first can be found at this address.

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