The European Union and the EIB have announced a €12 million technical assistance grant (around TND 41 million) for Société tunisienne de l’électricité et du gaz (STEG). Today’s signing ceremony in Tunis was attended by European Commissioner for the Mediterranean Dubravka Šuica and Head of the EIB's Middle East and North Africa Division Ulrich H. Brunnhuber.
This grant, provided via the EIB, will finance the expertise required by STEG to oversee and manage the ELMED project, a pioneering 224 km submarine cable linking Tunisia and Italy. With an estimated total cost of €921 million, the project is being jointly implemented by STEG and the Italian operator TERNA. Its inclusion on the EU list of Projects of Common Interest (PCIs) also underscores its critical role for energy security and reducing CO₂ emissions in Tunisia, Italy and the European Union as a whole.
This grant continues the substantial support already mobilised by the European Union and Team Europe for ELMED. In June 2024, a commitment of €472.6 million was announced at the Tunisia Investment Forum, including EU grants and joint loans from the EIB, the EBRD and KfW.
ELMED represents a key link between Tunisia’s power grid and the EU market. It will strengthen the security of energy supply while facilitating the integration of locally produced renewable energy. It will also gradually open up access to the European electricity market and position Tunisia as a key player in the region’s energy transition.
“This EU grant enables the EIB to provide high-quality technical assistance to STEG to oversee the ELMED project, the first electricity interconnection between Tunisia and Italy. This support, included in the June 2024 Memorandum of Understanding on Energy, paves the way for €3 billion of investment in wind and solar energy. Together, we are helping to advance the energy transition and prosperity in the Mediterranean region,” said European Commissioner for the Mediterranean Dubravka Šuica.
“Thanks to this EU grant provided via the EIB, STEG will have the necessary expertise to carry out this pioneering ELMED project – the first electricity interconnection between Tunisia and Italy. This new support reflects the shared commitment of Tunisia and the European Union to invest together in the energy transition, providing stability and economic prosperity in the Mediterranean region,” said Head of the EIB’s Middle East and North Africa Division Ulrich H. Brunnhuber.
Since 1995, the EIB has supported STEG with 11 financing operations that demonstrate fruitful and sustainable cooperation. This new step confirms the decisive action taken by the European Union and Team Europe to successfully implement the ELMED project and thus strengthen the security and energy supply of Tunisia and the entire Mediterranean region.
“The European Union’s support for STEG in implementing the ELMED project, the first electricity interconnection between Tunisia and Italy, illustrates the joint commitment of our EU partners to this strategic project and confirms the determination to make Tunisia a key player in the region’s energy transition,” said Chair and CEO of STEG Faycel Tarifa.
Background information
The European Investment Bank
Since 1979, the European Investment Bank (EIB) has played a key role in Tunisia’s economic and social development, supporting projects that positively transform everyday life. Through substantial investments in vital areas such as renewable energy, education, urban development and support for small businesses, the EIB is strengthening critical infrastructure and fostering inclusive growth.
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance beyond the European Union. It is a key partner in the European Union’s Global Gateway initiative, and is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices around the world.
Global Gateway is the European Union’s strategy to narrow the global investment gap, boost smart, clean and secure links in the digital, energy and transport sectors, and strengthen education, health and research systems. The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States and European development finance institutions. It aims to mobilise up to €300 billion in public and private investment over the 2021-2027 period, creating essential links rather than dependencies, and closing the global investment gap.
Delegation of the European Union to Tunisia
The European Union is Tunisia's largest investor and trading partner, with European companies already creating more than 400 000 jobs in the country. Cooperation covers trade, renewable energy, mobility and migration, education and opportunities for young people, rural development and female empowerment – all areas that reflect our shared commitment to prosperity, stability and opportunities for all. This year marks the 30th anniversary of the EU-Tunisia Association Agreement, the cornerstone of a strong and lasting partnership with the European Commission. Since the signing of the Memorandum of Understanding on the Strategic and Comprehensive Partnership in 2023, the European Union has mobilized its financial instruments, including over €600 million in grants in sectors such as energy, transport and small businesses, to support an estimated €5 billion in investment.
Société tunisienne de l’électricité et du gaz (STEG)
Established by Decree-Law No 62-8 of 3 April 1962, Société tunisienne de l’électricité et du gaz (STEG) is the central public body in the production of electrical energy and LPG as well as the transmission and distribution of electricity and natural gas. Since its creation, it has played a strategic role in the country's energy development. Its main objective is to supply the domestic market with electricity and gas and to meet the needs of all its customers (residential, industrial, tertiary, etc.). As a committed player in the energy transition, STEG is actively involved in regional interconnection projects and infrastructure upgrading initiatives. It also contributes to the country’s economic and social resilience through investments in renewable energy and energy efficiency. A number of projects have been launched to achieve these transitions in line with the energy policy of Tunisia, which aims to generate up to 35% of its electricity from renewable energy sources by 2030, rising to 50% by 2035.
This vision reflects STEG’s intention to play a central role in the energy transition by being a key player in decarbonising the energy sector in line with the country’s climate goals.