Tunisian energy supplier STEG has secured $507 million in funding from Team Europe – a funding alliance comprising European Union governments – to implement the Italy-Tunisia Electricity Interconnection Project ELMED.
Financial institutions the European Bank for Reconstruction and Development, the European Investment Bank and German investment bank KfW have committed $134.4 million loans for the purchase of underwater sea cables and other components for ELMED, as part of the package. The $507.5 million funding includes grants approved in 2023 and 2024 to support project planning and construction phases.
“ELMED will enable stabilize the power grid on both sides of the Mediterranean, and export electricity when possible,” stated Marcus Cornaro, Head of the EU Delegation in Tunisia, adding “This is a real transition opportunity for Tunisia, in terms of economy, employment and emissions reduction.”
The $913.7 million, 200km undersea cable will transport 600 MW of electricity to Europe, while enhancing energy affordability and independence for Tunisia, once operational in 2028.
“It’s about energy and raw material security and securing global value chains in the long term. This is why KfW is supporting operators who are tapping into the excellent potential of renewable energies in Tunisia – especially wind and solar,” added Christiane Laibach, Member of Kfw’s Executive Board.
Operated by STEG and Italian transmission network operator TERNA, ELMED will be the first electricity interconnector between Tunisia and Italy.
