Tunisia-Italy Electrical Interconnection Project (Elmed) Gains Momentum
The Higher Commission for Accelerating Public Projects recently reviewed the progress of the strategic Tunisia-Italy electrical interconnection project (Elmed), which aims to establish a bidirectional high-voltage direct current (HVDC) submarine link between Sicily and the Nabeul governorate.
Project Overview
Elmed is a major driver for strengthening Tunisia's electrical system, developing Euro-Mediterranean energy exchanges, and promoting renewable energy. It also enhances Tunisia's energy supply security and reduces its vulnerability to gas, climate, and geopolitical shocks.
The project includes two conversion stations, a 200-kilometer submarine cable crossing the Sicilian Strait, and connection, communication, and surveillance infrastructure. It is part of the national strategy to increase the share of renewable energy to 35% by 2030.
Project Updates
The project has undergone updates since its launch and is progressing steadily. Completion is expected by the end of 2028, with operations scheduled to begin in early 2029.
New Perspective for Diversification of Suppliers
According to Ezzeddine Khalfallah, an international energy expert, "the Elmed project comes at the right time, focusing on greater development of renewable energy and opening up new opportunities for diversification of suppliers in case of electricity import needs."
The initial design of the Tunisia-Italy electrical interconnection project (Elmed) included an electrical interconnection via a 200 km HVDC submarine cable and the construction of a 1,200 MW power plant in Tunisia, mainly for export to Italy (800 MW) via the cable, with the remainder for the local market.
Project Financing
The total cost of the project is €840 million, with the Tunisian side costing €420 million. The submarine cable is financed by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the German Development Bank (KfW), while the conversion station benefits from financing from the World Bank and the Tunisian Company of Electricity and Gas (Steg). The associated infrastructure receives financing from the World Bank and the Green Climate Fund (GCF).
The European program for supporting the development of infrastructure, "Connecting Europe Facility-CEF," grants the project a subsidy of €307 million, a first initiative of a subsidy allocated to a project involving a member country and a third country.
Benefits and Limitations
According to the expert, the project "will contribute to the diversification and securing of Tunisia's energy supply, particularly electricity, given the country's strong dependence on natural gas, mostly imported for electricity production." It will also enable Steg to supply electricity at a lower cost.
The project can help Tunisia become a regional player, either for North Africa or Southern Europe. "It is recognized as a key cross-border infrastructure project of the EU, and this interconnection constitutes a real bridge between Italy and Tunisia, linking two major electrical systems, Europe-North Africa, and will allow the creation of a Mediterranean electrical network and significant integration of the electricity market in the region."
Tunisia, given its regional position, can benefit from several opportunities, including direct access to the European electricity market, attracting investments for large solar and wind projects, and strengthening Tunisia's geopolitical role, allowing it to increase its weight in regional energy discussions.
The expert noted that beyond the potential benefits, "the project could present limitations that should not be underestimated and are of different orders: at the regulatory and market level, the sale of electricity to the European Union requires clear commercial frameworks such as export tariffs, guarantees of origin, and long-term contracts."
New Interconnection Projects
New Tunisia-Europe interconnection projects are planned and under study, including the Medlink project, an energy link initiative between Tunisia, Italy, and Algeria. This initiative is among the European Union's priority projects for renewable energy.
It involves a cross-border partnership aiming to develop terrestrial renewable power plants and energy storage systems (BESS) for local markets and export. The estimated cost of the project is around €5 billion, with €100 million already secured.
The second project, TuNur, is an old project that began to take shape in 2012 with the support of the Desertec Foundation but remained suspended. It is planned to be located in Réjim Maâtoug (Kébili Governorate) on an area of 10,000 hectares, consisting of a 2.25 GW capacity concentrated solar power (CSP) plant for the production of 9 TWh of electricity per year. The second component involves the installation of a 2 GW capacity submarine cable connecting Tunisia to Italy. The transport lines total 1,000 km.
