The European Bank for Reconstruction and Development (EBRD) has announced the approval of a €45 million loan to Tunisia’s Société tunisienne de l’électricité et du gaz (STEG) for a submarine power cable linking Tunisia and Italy.
STEG will combine the loan with a €307.6 million grant from the European Union’s Connecting Europe Facility, and financing from the European Investment Bank, the World Bank and KfW to develop the 200-km 600 MW high voltage direct current transmission network.
The project – which marks the first energy bridge between Italy and Tunisia – is expected to help ensure the stability of North Africa and Europe’s grid networks by facilitating increased integration of renewable energy and energy trading between the two blocs.
The submarine power cable will provide a reliable and efficient means of transporting electricity between the two countries.
HVDC technology allows electricity to be transmitted over long distances with minimal energy losses. The interconnection will facilitate the exchange of renewable energy resources, helping to reduce carbon emissions and promote sustainable energy practices.
In addition, the project will stimulate economic growth and job creation by stimulating regional electricity markets and supporting the development of Tunisia’s renewable energy sector. Increased energy cooperation between Tunisia and Italy will also contribute to greater energy resilience in both countries.
Overall, the EBRD’s loan is an important step towards the further development of Tunisia’s energy infrastructure and the promotion of clean energy trade between Tunisia and Italy,” underlines the European website EnergyPortal.
