<article><p class="lead">Italian grid operator Terna has begun construction of a new interconnection with Austria, which should be completed in the next two years.</p><p>The Glorenza-Nauders link will have a capacity of 300MW and a length of 28km, allowing doubling of cross-border capacity between the two countries for a total investment of around €85mn. Cross-border capacity with Austria is currently "meagre", and availability is highly susceptible to changes on the Swiss and Slovenian borders, Terna said in 2018. A wide price spread between Italy and the Austrian and German markets make this the most attractive border at which to increase interconnection capacity, it said. The Italian front month has averaged €43.79/MWh in November, €7.01/MWh higher than the corresponding Austrian contract, <i>Argus</i> data show.</p><p>Italian energy regulator Arera also approved the exemption from third-party rules for the Italian portion of the line, equal to 150MW. This will be reserved for private companies which are building the interconnector for a period of 10 years. The economic development ministry recently <a href="https://direct.argusmedia.com/newsandanalysis/article/2154865">revoked</a> part of the exemption accorded along the 1200MW Piossasco-Grand'Ile line with France, following a decision of the European Commission. But objections raised by the commission were specific to that line and do not apply in this case, Arera said. </p><p>The two countries are also working to build the 132KV Prati di Vizze–Steinach interconnector, which should be finished by 2023. Capacity at the Austrian border is scheduled to rise to 1GW for import and 600MW for export, increasing by 700MW and 500MW, respectively, excluding merchant lines. </p><p class="bylines"><i>By Fabio Roccon</i></p></article>
