Italy and Tunisia, separated by 200 kilometers of the Mediterranean Sea, are moving towards closer energy cooperation with a planned submarine power cable between Cap Bon in Tunisia and Sicily. This project, known as ELMED, is co-financed by KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The cable will span 220 kilometers, with 20 kilometers on land, creating an important power link between the continents. The Tunisian grid operator STEG and Italian grid operator TERNA are collaborating on this initiative.
ELMED represents a significant step in strengthening energy ties between Europe and North Africa. It is part of the EU's Global Gateway connectivity initiative, offering an alternative to China's New Silk Road infrastructure projects. This project aims to connect Tunisia to the European electricity grid while reducing its dependency on it. Europe gains access to potential green electricity sources from North Africa through renewable energies.
Tunisia has considerable potential for renewable energy, particularly solar and wind power. With approximately 3,000 hours of sunshine annually—double that of Germany—the country has untapped solar energy resources. Currently, only about 5% of Tunisia's electricity production comes from renewables, with most generated from gas. Additionally, Tunisia imports around 60% of its natural gas from Algeria, creating dependency issues exacerbated by rising prices.
Tunisia aims to change course by increasing its reliance on renewable energy sources. By 2030, it plans for 35% of its electricity to come from renewables and aims for climate neutrality by mid-century.
The ELMED cable supports these goals by enhancing generation capacities and adjusting the electricity grid. Integrating the Tunisian market into the European system will allow electricity purchases from Europe, reducing dependence on Algeria and increasing renewables' share in the mix. In Italy today, renewables account for 37% of electricity production, expected to rise to 70% by 2030.
The high-voltage cable will also improve grid stability in Tunisia—a key factor for integrating more renewable sources. Improved conditions may attract private investment; thus ELMED offers multiple benefits for Tunisia while enabling EU imports based on renewable energies in the future.
Besides the submarine cable itself, additional infrastructure like converter stations and a transformer station will modernize Tunisia's electricity system. KfW plans to finance upgrades to the Tunisian grid control room to stabilize and enhance efficiency further.
ELMED's total costs amount to around one billion euros. The EU Commission contributes EUR 307 million as part of the Global Gateway Initiative aimed at spending EUR 300 billion globally on digital, energy, and transport projects by 2027. The World Bank (WB), European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), along with KfW Development Bank representing BMZ are also involved with favorable loans.
When operational in 2029, this connection will bridge a crucial gap between Europe and Africa. Andrea Hauser from KfW Development Bank describes it as "historic" and "groundbreaking."