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New European power links needed for renewables, grid resilience, Hitachi Energy says - Finance news and analysis from Global Banking & Finance Review
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New European power links needed for renewables, grid resilience, Hitachi Energy says

Published by Global Banking & Finance Review

Posted on July 8, 2026

2 min read

· Last updated: July 8, 2026

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Hitachi: New European Power Links Needed for Renewables and Grid Resilience

Strengthening Europe's Electricity Grid and Renewable Integration

Growing Demand for Cross-Border Electricity Connections

MILAN, July 8 (Reuters) - Europe and countries across the Mediterranean need more electricity connections to manage peak power demand efficiently and support the integration of renewable energy, a senior executive at Hitachi Energy told Reuters.

The comments come days after Portugal's energy minister said that Lisbon was exploring a power interconnection with Morocco to have an additional source of electricity in the event of supply disruptions. 

Major Projects and Strategic Initiatives

Italy-Tunisia Elmed Power Link

• Italian and Tunisian grid operators Terna and STEG have recently awarded Hitachi Energy, a subsidiary of Japan's Hitachi Ltd, a €770 million ($880 million) contract to build the converter stations for a new power link between Italy and Tunisia called Elmed.

Significance of the Elmed Project

• The link, designated as a strategic project by the European Commission, will be the first high-voltage direct-current interconnection between Europe and North Africa, creating a 600-megawatt link that can carry power to and from Italy.

• The connection will allow Italy to import electricity from renewable projects planned in Tunisia and strengthen both countries' ability to respond to periods of peak electricity demand, said Niklas Persson, CEO of Hitachi Energy Grid Integration Business Unit.

Technological Advancements in Power Transmission

• "High-voltage direct-current technology is a great enabler to integrate renewables, but also to transport power over long distances without losses," Persson said, adding that the project will be operational in 2031.

• Under the Elmed project, Hitachi Energy's converter stations will transform alternating current into direct current for transmission across the 220-kilometre link and convert it back into alternating current for integration into local electricity grids.

• Alternating current is normally used in homes and businesses, while direct current is used to lower power losses when transporting electricity over long distances.

Project Timeline and Local Sourcing

• Construction of the stations is expected to begin in about a year's time and will use equipment sourced in Europe, Persson said. ($1 = 0.8763 euros)

Reporting and Editorial Credits

(Reporting by Francesca Landini; Editing by Nina Chestney and Mark Porter)

Key Takeaways

  • Hitachi Energy awarded €770 million contract for Elmed HVDC converter stations, the first Europe–North Africa power link via submarine cable, capacity 600 MW over ~220 km of 800 m depth (hitachienergy.com)
  • Elmed supports EU’s REPowerEU goals and Mattei Plan for Africa; total project cost ~€1.42 billion, with >€300 million EU Connecting Europe Facility funding (hitachienergy.com)
  • Portugal is exploring an electricity interconnector with Morocco to diversify supply and increase grid resilience following Iberian Peninsula blackout vulnerabilities (zonebourse.com)

References

Frequently Asked Questions

What is the Elmed project mentioned in the article?
The Elmed project is a new high-voltage direct-current power link between Italy and Tunisia, seen as a strategic initiative by the European Commission and awarded to Hitachi Energy for converter station construction.
Why are new electricity connections needed in Europe and the Mediterranean?
New electricity connections are needed to efficiently manage peak power demand and support renewable energy integration across the region.
How does high-voltage direct-current (HVDC) technology benefit power transmission?
HVDC technology enables the integration of renewables and allows for long-distance power transmission with reduced energy losses.
When will the new Italy-Tunisia power link be operational?
The power interconnection between Italy and Tunisia is expected to be operational in 2031.
What role does Hitachi Energy play in the Elmed project?
Hitachi Energy will build and supply the converter stations for the Elmed project, converting alternating current to direct current and back for efficient power transmission.

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