KfW Bankengruppe

06/13/2024 | Press release | Distributed by Public on 06/13/2024 06:22

KfW finances Tunisian submarine cable for exporting green electricity to the EU

  • Laibach: "Development cooperation is in the strategic interest of Germany and Europe"
  • A total of EUR 35 million for a 200 kilometre-long electricity connection between Tunisia and Italy
  • Significant CO2 savings through electricity trade between Europe and Africa

On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW has signed a loan agreement for EUR 35 million with the Tunisian energy supplier STEG (Société Tunisienne de l'Electricité et du Gaz) for a 200 kilometre-long submarine cable. This project will enable the electricity grids of Tunisia and Italy to be connected for the first time. The high-voltage submarine cable and associated infrastructure has a capacity of 600 megawatts. As of 2028, trade in electricity between Tunisia and the EU will be possible and significant CO2 savings will be achieved.

"In an increasingly multipolar world, development cooperation is in the strategic interests of Europe and Germany,"

said Christiane Laibach, Member of KfW's Executive Board and responsible for international financing.

"It's about energy and raw material security and securing global value chains in the long term. This is why KfW is supporting operators who are tapping into the excellent potential of renewable energies in Tunisia - especially wind and solar."

The project is being carried out by the two system operators STEG (Tunisia) and TERNA (Italy). The EU provided the project with a grant of EUR 307.6 million through the Connecting Europe Facility. Other donors include the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development and the Green Climate Fund.

The project is one of the flagship projects of the EU Global Gateway initiative, which specifically supports geopolitically important projects and partner countries.

Further information about KfW Development Bank is available at: www.kfw-entwicklungsbank.de