Summary:

On 24 June 2026, the Italian national electrical grid operator Terna and Tunisian electricity and gas company STEG awarded Hitachi Energy a contract worth around $873 million to build converter stations for the ELMED electricity interconnection project linking Italy and Tunisia. 

The project involves the construction of high voltage, direct current (HVDC) converter stations in Partanna in Sicily and Mlaabi on Tunisia’s Cap Bon, forming part of a 220 kilometers submarine cable with a capacity of 600 megawatts across the Strait of Sicily. 

The ELMED project, with a total investment of $1.61 billion, is supported by the European Union through the Connecting Europe Facility as well as international financial institutions including the World Bank, the EIB, the EBRD and KfW, and is framed within Italy’s Mattei Plan for Africa aimed at strengthening Euro Mediterranean energy and geopolitical ties. 

Outlook: 

The finalization of the converter station contract marks a decisive step toward the physical implementation phase of the ELMED interconnection, placing Tunisia in a more operational role where execution capacity and coordination become central to project success.  

Attention now shifts to delivery risks, particularly the alignment between STEG, civil engineering contractors, and international technology providers under tight technical requirements. 

The project also carries a notable institutional precedent, as it represents the first time the European Union has financed an infrastructure project involving a non-member country. This elevates Tunisia’s profile within EU external energy policy frameworks, while also increasing the degree of external oversight embedded in the structuring of its strategic electricity infrastructure. 

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