Tunisia’s share of the ELMED electricity interconnection project with Italy is estimated at about €582 million ($676 million), while the total cost of the project is expected to reach approximately €1.014 billion ($1.2 billion), said Wael Chouchane, Secretary of State in charge of Energy Transition at Tunisia’s Ministry of Industry, Mines and Energy.

Speaking at a session of Finance and Budget Committee, Chouchane said about €863 million ($1 billion) of the total cost will cover project components on both sides, while around €110 million ($128 million) will be allocated to strengthening Tunisia’s national electricity grid.

Annual revenues from the interconnector are expected to range between €71 million and €182 million ($82.5 million and $211 million), depending on operating scenarios, with income to be shared equally between STEG and Terna, he added.

The 200-kilometre, 600-megawatt (MW) subsea interconnector is being developed jointly by Tunisia’s state utility Société Tunisienne de l’Électricité et du Gaz (STEG) and Italy’s transmission operator Terna. The High-Voltage Direct Current (HVDC) link will operate at 500 kilovolts and reach depths of up to 800 metres in the Strait of Sicily.

The project is financed by the World Bank, European Bank for Reconstruction and Development, European Investment Bank and KfW, and supported by a €307.6 million grant from the European Union’s Connecting Europe Facility as well as $25 million in concessional financing from the Green Climate Fund.

Converter stations and grid upgrades

The project includes the construction of two 500/400 kV converter stations in Mlaabi, Tunisia and Partanna, Sicily. Tunisia’s domestic transmission network will also be reinforced through new 400 kV double-circuit overhead lines linking Mlaabi – Grombalia 2; Grombalia 2 – Mornaguia and Grombalia 2 – Kendar, and the construction of a new 400/225 kV substation in Grombalia 2.

Chouchane said international tenders have been launched for converter stations, submarine cables and transmission lines, with prequalification phase completed and several contracts already awarded.

In September 2025, Italy-based cable manufacturer Prysmian was awarded a contract that could reach €460 million to build the subsea electricity cable linking Sicily and Tunisia as part of the ELMED.

Completion may slip to 2031

Chouchane said the project could be completed in 2030 or 2031, later than earlier targets, due to strong global demand for electrical equipment following the war in Ukraine, which has strained supply chains.

In September 2025, Zawya Projects had reported that work on the €7 billion ($8.2 billion) Medlink cross-border electricity interconnection project linking Italy, Tunisia and Algeria is expected to start in 2027.

(Reporting by Majda Muhsen; Editing by Anoop Menon) (anoop.menon@lseg.com)

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