Summary:

On 5 March 2026, Tunisia’s Secretary of State for Energy Transition, Wael Chouchane, announced that the Tunisian share of the electricity interconnection project with Italy ELMED will cost approximately €582 million as part of a total project cost estimated at €1.014 billion.

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The overall budget includes around €863 million for the shared infrastructure between Tunisia and Italy and about €110 million dedicated to strengthening Tunisia’s domestic electricity network.

The ELMED project will establish the first high-voltage direct current (HVDC) interconnection between Europe and North Africa, enabling bidirectional electricity exchanges between the two systems.  

The 600 MW link will rely on a submarine cable of nearly 200 km across the Strait of Sicily, connecting Partanna in Sicily to Mlaabi in Tunisia’s Cap Bon peninsula. The project is supported by financing from several international partners, including the World Bank, the European Union, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and KfW Bank Group. 

Outlook: 

While this project represents significant progress for Tunisia’s energy system and its integration with European electricity markets, the announced budget may spark debate over spending priorities and the country’s capacity to absorb such a large financial commitment. Tunisia’s share of the project, even with international support, highlights the significant scale of the investment relative to ongoing fiscal pressures and public debt which continue to drive debate over priorities and other infrastructure projects. 

Authorities are expected to emphasize the strategic value and long-term benefits of the project, particularly for grid reinforcement and future renewable energy exports, but questions about fiscal management and budget allocation are likely to remain a key part of the discussion. 

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