- EBRD commits €45 million to support STEG in constructing ELMED, a 200km submarine cable linking Tunisia and Italy by 2028.
- The project’s total cost is €920 million, including a €307.6 million EU grant; it is co-financed by the EIB and KfW.
- ELMED aims to integrate electricity grids, boost renewables in Tunisia, and enable EU-Tunisia electricity trade by 2028.
The European Bank for Reconstruction and Development (EBRD) has pledged €45 million to support Tunisia’s Société Tunisienne de l’Electricité et du Gaz (STEG). This funding includes constructing a vital energy infrastructure project. It aims to develop ELMED, a 200-kilometre, 600MW HVDC submarine cable connecting Tunisia and Italy’s electricity grids by 2028.
In collaboration with Italy’s TERNA, STEG will lead the implementation of ELMED, with a total project cost of €920 million, including a significant €307.6 million grant from the EU’s Connecting Europe Facility (CEF). The EBRD’s financing specifically targets the Tunisian side of ELMED. It is part of a broader €125 million loan package co-financed with the European Investment Bank (EIB) and Kreditanstalt für Wiederaufbau (KfW).
The World Bank supports infrastructure in Tunisia. The project integrates European and North African electricity networks and accelerates Tunisia’s renewable energy sector. Additionally, it includes a €5 million grant from the EU Neighbourhood Investment Platform to support policy dialogue and regulatory frameworks essential for operationalising the interconnector.
Marcus Cornaro, head of the EU Delegation in Tunisia, highlighted ELMED’s transformative potential, emphasising its role in stabilising energy grids and fostering economic and environmental benefits through reduced emissions.
Dr Heike Harmgart, EBRD’s managing director for the Southern and Eastern Mediterranean, underscored the project’s significance in Tunisia’s energy transition and its broader implications for enhancing energy security across the Mediterranean region.
Scheduled for completion in 2028, ELMED aims to enable electricity trade between Tunisia and the EU, marking a milestone in regional energy cooperation. The initiative aligns with the EU’s Global Gateway strategy, promoting strategic infrastructure investments in partner countries.
Dr Andrea Hauser from KfW emphasised the project’s bilateral advantages, highlighting its contribution to mutual energy security and the expansion of renewable energy markets on both shores of the Mediterranean.
The ELMED project is a testament to international cooperation in advancing sustainable energy solutions and economic integration across Europe and North Africa.