ROME – A 307 million euro loan was signed with the European Commission on Tuesday, following the agreement between the Italian and the Tunisian electricity operators. 

 Terna, the operator of the Italian electricity grid, and Steg, the Tunisian electricity and gas operator, have signed a Grant Agreement with the European Commission for 307 million euro to support ‘Elmed’, the project for a bridge between Italy and Tunisia in order to be electrically connected. 

 The authorization procedure was launched by the Italian Ministry of the Environment and Energy Security in late 2022, and the project is set to receive investments of approximately 850 million euro. Of these, 307 million have been allocated by the European Commission through the Connecting Europe Facility ('CEF'), the European Union fund established to support key projects that aim to optimise energy infrastructure in the. This is the first time that CEF funds have been allocated to an infrastructure project developed by a Member State and a Third Country.

 Giuseppina Di Foggia, Terna’s Chief Executive Officer, said that ‘The signing of the Grant Agreement marks yet another step towards the development of a strategic project for the electricity systems of the two countries […] Elmed will enable the development of renewable energy and […] deliver economic and industrial benefits, attracting investment and creating new jobs.’

 The Interconnection between Italy and Tunisia will help to integrate the electricity markets and improve energy procurement security and increase the renewable energy production in both Europe and Africa.

 Once it becomes fully operating, the power line will allow greenhouse gas emissions to drop, therefore contributing to the achievement of goals in place for safeguarding and improving the environment – as in the ‘Integrated National Energy’, ‘Climate Plan’ and ‘Green New Deal.’

 Additionally, the World Bank recently granted 268.4 million US dollars to Tunisia to build the converter substation (included in the scope financed by the CEF) and for internal grid reinforcements necessary for the interconnection to work effectively.

 The power line is planned to run from the electrical substation at Partanna, in the province of Trapani, up to the substation at Mlaabi on the Tunisian peninsula of Cape Bon, it will measure around 220 km (most of which is submarine cable). It will have a capacity of 600 MW and a maximum depth of approximately 800 m along the Strait of Sicily. The procurement process started last May.

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