Summary:

On 15 January 2026, Tunisia and the European Bank for Reconstruction and Development (EBRD) signed a €43 million financing and guarantee agreement for ELMED 2, the second phase of the Tunisia–Italy submarine electricity interconnection.

The agreement was signed by Odile Renaud-Basso on behalf of the EBRD and by Samir Abdelhafidh, Tunisia’s Minister of Economy and Planning and EBRD Governor, on behalf of Tunisia.

The project focuses on reinforcing the electricity transmission network through the installation of 400 kV overhead lines, notably an 85 km link between Grombalia and Kondar, as well as additional connections around Grombalia.

According to STEG CEO Faisal Trifa, the infrastructure is intended to facilitate power transfers from southern production areas to northern demand centers and support cross-border exchanges with Europe.

Outlook: 

While the ELMED 2 project marks significant progress toward greater power transmission connectivity with Europe, the initiative underscores some persistent challenges within Tunisia’s domestic power infrastructure system.

Tunisia’s ability to play a significant role in providing energy to Europe during its transition away from Russian energy and toward green energy will be heavily dependent on local systems and infrastructure. At times, these systems can struggle to maintain high levels of reliability and performance, particularly in the face of high-load balancing scenarios.

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