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Terna, Steg and Hitachi Energy: €770 Million Contract for Elmed Converter Stations, The First Direct-Current Interconnection Between Europe and North Africa

Press Release | Rome, Italy, Zurich, Switzerland | 24.06.2026 | 4 min read

  • The Elmed project will play a strategic role in increasing the security and reliability of the electricity system in the Euro-Mediterranean area.
  • The converter stations will be built in Italy in Partanna, in the Sicilian province of Trapani, and in Tunisia in Mlaabi, on the Cape Bon peninsula.

Terna, the company that manages the Italian national electricity transmission grid, led by Pasqualino Monti, and STEG, the Tunisian electricity and gas grid operator, have awarded Hitachi Energy, a global leader in electrification, a contract worth approximately €770 million for the construction of the converter stations for the Elmed project, the first electricity interconnection between Italy and Tunisia.

The awarding of the contract for the converter stations marks the completion of the procurement process for the first high-voltage direct current (HVDC) submarine link between Europe and North Africa.

The tender, published in 2023 jointly by Terna and STEG in the Official Journal of the European Union, concerned the design, supply, and construction of the converter stations for the interconnection, one of the infrastructural projects included in the Mattei Plan for Africa to strengthen economic, energy, and geopolitical partnerships between Europe and African countries.

The two infrastructures now awarded will be built respectively in Italy in Partanna, in the province of Trapani, and in Mlaabi, in the Menel Temime area, in Tunisia. The link, powered by advanced HVDC technology, will have a capacity of 600 MW and will extend for about 220 km, mostly via submarine cable, reaching a maximum depth of about 800 meters in the Strait of Sicily.

Hitachi Energy is responsible for providing the HVDC solution that combines world-leading expertise in HVDC converter valves; its MACH™ digital control platform, power transformers, and high-voltage switchgear; as well as system studies, design and engineering, supply, installation supervision, and commissioning. The project will leverage its expertise developed through the successful delivery of some of the world’s largest and most significant interconnection projects.

Other companies in the consortium, including D’Agostino Costruzioni Generali S.p.A. for the Partanna station and Orascom Construction SAE for the Mlaabi station, will mainly carry out civil works as well as electromechanical installations and auxiliary systems.

Representing a significant step towards greater interoperability between Euro-Mediterranean electricity systems, Elmed fits into a context in which governments and transmission system operators worldwide are accelerating investments in transmission infrastructure, in preparation for a fully electrified system: a system capable of integrating renewable energy sources on a large scale, strengthening cross-border interconnections and increasing energy security.

Elmed is a major infrastructure project for strengthening energy security and integrating electricity systems between Europe and North Africa, in line with the objectives of the energy transition and market integration defined by the Integrated National Energy and Climate Plan (PNIEC).

The project, which is strategically important for Tunisia, enjoys the full support of the Tunisian authorities and is part of the national vision aimed at strengthening energy security, promoting the regional integration of electricity markets and supporting the energy transition.

Elmed also strongly supports the dual objective of the European Commission’s REPowerEU plan: ending the EU’s dependence on fossil fuels and achieving decarbonisation targets, primarily through diversifying energy supplies and developing renewable energy.

Of the total investment for the electricity link, €1,420 million, €307 million has been allocated by the European Commission through the Connecting Europe Facility (CEF) grant program managed by CINEA. For the first time, the European Union has financed a project involving a non-member country, confirming the importance of the interconnection project.

The project is also supported, on the Tunisian side, by additional European and international financial institutions such as the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development, and KfW.

About Hitachi Energy

Hitachi Energy is a global leader in electrification, powering the electricity era to meet the energy demands of today, and the next 25 years. As the energy arm of Hitachi Group, over three billion people depend on our pioneering, mission-critical technologies to power their daily lives. With over a century of innovation, we are addressing the most urgent energy challenge of our time: driving the evolution of the world’s energy system to ensure abundant, secure, affordable, and sustainable power for today’s generation and the next. With an unparalleled installed base in over 140 countries, we are the grid ecosystem partner across the utility, industry, data center, and transportation sectors. Headquartered in Switzerland, we employ over 56,000 people in 60 countries and generate revenues of around $20 billion USD.

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About Hitachi, Ltd.

Through its Social Innovation Business (SIB) that brings together IT, OT (Operational Technology) and products, Hitachi aims to be a global leader in continuously transforming social infrastructure through digital, contributing to a harmonized society where the environment, wellbeing, and economic growth are in balance. Hitachi operates worldwide across four sectors – Digital Systems & Services, Energy, Mobility, and Connective Industries – as well as a Strategic SIB Business Unit focused on new growth areas. With Lumada at its core, Hitachi creates value by combining data, technology and domain knowledge to solve customer and social challenges. Revenues for FY2025 (ended March 31, 2026) totaled 10,586.7 billion yen, with 606 consolidated subsidiaries and approximately 290,000 employees worldwide. Visit us at https://www.hitachi.com.

About Terna

Terna Group is one of the leading European and global operators in electricity transmission. It manages the national high-voltage transmission network, with about 76,000 km of lines and 926 electrical substations across Italy. Its mission is to ensure, 24 hours a day, 365 days a year, the safe, high-quality and efficient operation of the national electricity system, providing equal access to all market operators. An organisation of excellence comprising over 7,100 professionals, Terna plays a leading role in the energy transition towards full decarbonisation and the complete integration of renewable energy sources into the grid. For more information www.terna.it.

About STEG

STEG is the Tunisian electricity and gas operator. It has been managing the production, transport and distribution of electricity and natural gas in Tunisia since 1962. To cope with the growing demand for energy in Tunisia, a country with limited primary resources, STEG was set up to complete and develop the electrification of Tunisia and the interconnection of the grid.

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