Italy’s government, led by Giorgio Meloni, has expressed support and endorsement for an ambitious new plan aimed at increasing Europe’s imports of low-cost, clean energy to be produced in North Africa.
Italian officials met with the executives of what is known as the “Medlink” project, indicating Rome’s readiness to leverage its political weight to support the plan, according to sources familiar with the matter.
The project involves the construction of facilities and the erection of units, including solar panels, in Tunisia and Algeria, with the energy produced to be exported to the Tuscan and Ligurian regions of Italy via maritime transmission lines, as outlined in a confidential document about the project seen by Bloomberg.
The proposal, prepared by Zhero, a company founded by former executives of the gas network operator Snam, has recently raised over 100 million euros ($108 million) to finance the operational startup phase.
Zhero will need to raise approximately 5 billion euros to implement the plan, according to individuals who requested anonymity during private negotiation discussions.
This represents a financial challenge to the project’s economic viability, as development costs must be covered by customers who will book and purchase the electricity output.
“Medlink” also receives some support at the European level, having been included in the long-term plan of the European Network of Transmission System Operators for Electricity (Entso-e), as well as in Meloni’s broader Africa plan, which Rome says will support growth and curb illegal migration.
The energy produced by “Medlink” is expected to eventually account for 8% of Italy’s total annual electricity consumption, according to the document, which also notes that providing large new volumes of supplies to the continent could make the country a “power center for Europe.”
This aligns perfectly with Meloni’s regional plan, which she has visited at least three times since taking office in 2022. The initiative, known as the “Mattei Plan,” aims to support development in the region and reduce illegal migration.
Meloni’s government had previously approved another submarine cable project linking Tunisia and southern Italy. This project, known as “Elmed,” will be operated by the government-controlled electricity distribution network operator Terna and the Tunisian Electricity and Gas Company, according to a statement issued on May 15.
The new connection line will also give the Prime Minister a real opportunity to demonstrate her commitment to the region and energy security to her allies in European countries, as she seeks to enhance Italy’s position on the global stage, according to sources familiar with the matter.
The wind turbines, solar panels, and battery storage sites associated with the “Medlink” project in Tunisia and Algeria are expected to have a total installed capacity of 10 gigawatts, transmitting up to 28 terawatt-hours of energy annually to northern Italy via two high-voltage submarine cables, according to the document.
The project, scheduled to start operating in 2030, also aims to export electricity to Austria, Germany, and Switzerland.