Prysmian reports that it has been awarded a framework agreement with Italy’s Terna—which is responsible for the management, maintenance and development of the country’s high-voltage electricity grid—to support the strengthening of the Italian power grid.

A press release said that the framework agreement is for three years and includes an additional year which may be optioned by Terna—that has a potential total value of €382.5 million. Terna is one of the largest independent grid operators in Europe. As part of the agreement, Prysmian will supply Terna with HVAC cables, as well as maintenance of high voltage cables.

Terna is expected to acquire at least 50 km of high-voltage cable each year, a number that could rise considerably in line with their requirements. Based in Rome, Terna manages about 98% of Italy’s high-voltage and extra-high-voltage electricity transmission grid, operating over 75,000 km of power lines.

The award is aligned with Terna’s strategy for the development and modernization of the national transmission grid, aimed at supporting the objectives outlined in the European Green Deal and the Integrated National Energy and Climate Plan. Prysmian will make use of its extended facilities in Pignataro Maggiore, Campania, to manufacture these cables. That site recently received over €20 million in investment to support an increase in capacity, including in high voltage cables.

Prysmian Europe CEO Marcello Del Brenna said the deal was positive on multiple levels. Prysmian will help Terna improve its power grid and bolster progress for its energy transition while supporting the overall Italian economy by making the cables at its Pignataro Maggiore factory in Caserta. Added Italy Country Manager Fabio Zucca, “This framework agreement is an important commitment, from both Prysmian and Terna at a critical moment in the energy transition, and we are proud to have been entrusted with this significant award.”