Italy and Tunisia advance first electricity link with Elmed project

Terna, the company that manages the Italian national electricity transmission grid, led by Pasqualino Monti, and STEG, the Tunisian electricity and gas grid operator, have awarded Hitachi Energy, a global leader in electrification, a contract worth approximately €770 million (approx. US$893mn) for the construction of the converter stations for the Elmed project, the first electricity interconnection between Italy and Tunisia

The awarding of the contract for the converter stations marks the completion of the procurement process for the first high-voltage direct current (HVDC) submarine link between Europe and North Africa.

The tender, published in 2023 jointly by Terna and STEG in the Official Journal of the European Union, concerned the design, supply and construction of the converter stations for the interconnection. The project is one of the infrastructure initiatives included in the Mattei Plan for Africa, aimed at strengthening economic, energy and geopolitical partnerships between Europe and African countries.

The two infrastructures will be built in Italy at Partanna, in the province of Trapani, and in Mlaabi, in the Menel Temime area of Tunisia. The link, powered by advanced HVDC technology, will have a capacity of 600 MW and extend for approximately 220 km, mainly through submarine cable, reaching a maximum depth of around 800 metres in the Strait of Sicily.

Hitachi Energy will provide the HVDC solution, combining its expertise in HVDC converter valves, its MACH digital control platform, power transformers and high-voltage switchgear. The company will also deliver system studies, design and engineering, supply, installation supervision and commissioning services. The project will leverage its experience gained through the successful delivery of some of the world’s largest and most significant interconnection projects.

Other consortium members, including D’Agostino Costruzioni Generali S.p.A. for the Partanna station and Orascom Construction SAE for the Mlaabi station, will mainly undertake civil works, electromechanical installations and auxiliary systems.

Representing a significant step towards greater interoperability between European and North African electricity systems, Elmed comes as governments and transmission system operators worldwide accelerate investment in transmission infrastructure. These developments are supporting the move towards fully electrified energy systems capable of integrating renewable energy sources at scale, strengthening cross-border interconnections and improving energy security.

Elmed is a major infrastructure project designed to strengthen energy security and integrate electricity systems between Europe and North Africa, aligning with energy transition and market integration objectives under the Integrated National Energy and Climate Plan (PNIEC).

The project, which is strategically important for Tunisia, has the full support of Tunisian authorities and forms part of the country’s national vision to strengthen energy security, promote regional electricity market integration and support the energy transition.

Elmed also supports the European Commission’s REPowerEU objectives of reducing dependence on fossil fuels and achieving decarbonisation targets, primarily through diversified energy supplies and increased renewable energy development.

With a total investment value of €1.42 billion (approximately US$1.65bn), the electricity link has received €307 million (approximately US$356 million) from the European Commission through the Connecting Europe Facility (CEF) grant programme managed by CINEA. For the first time, the European Union has financed a project involving a non-member country, highlighting the strategic importance of the interconnection.

The project is also supported on the Tunisian side by additional European and international financial institutions, including the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development and KfW.