Italy Backs Proposed HVDC Interconnection with Algeria
Italy is planning to provide political backing for the Medlink project in a bid to import renewable energy from North Africa to Northern Italy via subsea lines, Bloomberg reported on Thursday, citing a project document it has seen. Italian officials have reportedly met privately with Medlink executives, signaling Rome's potential support for the project.
The project is based on the installation of a high-voltage direct current (HVDC) submarine cable, connecting the Algerian coast to the Italian grid, helping to limit losses over long distances and to ensure stable transmission of electricity generated from solar sources. The route studied, about 300 kilometres long, should link an Algerian transformer station in the north-eastern region to a reception infrastructure on the Italian side, integrated into the European cross-border network.
Developed by Italian energy firm Zhero, the project is scheduled to kick off operations in 2030, and could eventually expand to deliver green energy to Austria, Germany and Switzerland. It is already included in the European Network of Transmission System Operators for Electricity (Entso-e) long-term power transmission plan.
Zhero has already secured over EUR 100 mn in startup financing but will need around EUR 5 bn for the project to be fully realized, the document disclosed, adding that development costs will need to be covered by future electricity customers.
The Medlink project, of which this link is a part, is jointly supported by public and private operators. It benefits from advanced discussions between Sonelgaz, the main player in electricity transmission in Algeria, and Edison, one of Italy's main energy companies.
The feasibility of the project is based on the ramp-up of the national solar park. Algeria has set a target of 15,000 megawatts by 2035. To date, 3,200 megawatts are already in the development phase. The national solar field, estimated at more than 2,500 kWh/m²/year in several regions, guarantees stable and competitive production. The planned power plants are mainly located in the Highlands and the south of the country, areas benefiting from strong sunshine and large areas available.
This deployment is led by the Algerian Renewable Energy Company (SHAEMS), in partnership with local and foreign companies. Recent calls for tenders include requirements on the local integration rate, in order to structure an industrial sector around solar energy.
Beyond the Italian market, Algeria is considering a regional integration scheme. Connection studies are underway with Libya, Egypt and Mauritania. These connections aim to build an interoperable African electricity grid, capable of supporting energy exchanges between the countries of the continent.
The connection to Europe responds to a logic of diversification of energy exports. By opening up to electricity, Algeria is completing its historic gas supply. This shift is part of the post-2022 context, marked by energy supply tensions in Europe and the acceleration of policies to transition to renewable energy.
Algerian Energy Minister Mohamed Arkab confirmed the project's alignment with the national roadmap. At the "Towards the South" forum in Sorrento, he insisted on the strategic interest of a direct connection with Europe, also mentioning partnerships around green hydrogen and electrical equipment. The project benefits from a favourable diplomatic climate, particularly with Italy, which is seeking to strengthen its relations with Africa within the framework of the Mattei Plan.
This energy partnership is based on a logic of co-benefit: security of supply for Europe, technological development and resource development for Algeria.
In parallel with its efforts in the electricity sector, Algeria is developing its water treatment capacities. The gradual commissioning of new desalination plants has increased the daily capacity to 3.7 million m³, with a target of 5.2 million by 2030. These facilities, powered in part by renewable energy, are part of an integrated approach to resource management.
The Algeria-Europe electricity link project represents a concrete step towards a more diversified and resilient economy. It places Algeria at the centre of a changing regional energy system, as a reliable supplier and a committed player in the low-carbon transition.
