Algeria–Italy: electricity interconnection enters a concrete phase

The electricity interconnection project between Algeria and Italy has reached a visible administrative milestone: public consultation is open in Italy from October 16 to 23, 2026, on proposed onshore installations. Affected communities and residents can examine routes and submit comments before permitting proceeds. This moves Medlink, also presented as Algeria-Italia Link, into a more concrete phase without meaning that construction has been decided or fully financed.

Developed by Italian company Zhero, the project combines renewable generation in Algeria’s desert with a subsea cable to Europe. Its significance extends beyond electricity exports: it raises questions about Algeria’s ability to develop large-scale generation, secure networks and share value with its European partner.

Distinguishing announced capacities

In its Algeria–Italy configuration, the project envisages at least 5,000 megawatts of renewable generation capacity, followed by a roughly 900-kilometer high-voltage direct-current subsea link with transfer capacity of 2,000 MW. Zhero targets more than ten terawatt-hours transported annually, a volume presented as equivalent to the electricity consumption of around four million households.

These are development targets, not installed capacities or guaranteed production. They depend particularly on building solar and wind facilities, connecting them to Algeria’s grid, converter availability and cable commissioning. The announced annual volume must also account for renewable variability and domestic requirements, which will remain a priority in a country with rising electricity demand.

The 2 GW Algeria–Italy link must also be distinguished from the overall Medlink program. The latter targets nearly 10 GW of onshore solar and wind, batteries in Algeria and Tunisia, annual generation of 30 TWh and up to 4 GW of transfer capacity between North Africa and Europe. These aggregates cover a broader scope than the bilateral cable alone. Confusing them would exaggerate the interconnection’s progress.

Useful consultation, but still preliminary

Italy’s consultation concerns installations on Italian territory and gathers comments on their location. It forms part of the procedure before the Ministry of the Environment and Energy Security. This step may lead to changes in the route or onshore equipment. It does not replace required Algerian approvals, detailed technical studies, commercial agreements or investment decisions.

The developer emphasizes private financing, but publicly available information does not establish that all required capital has been raised. For cross-border infrastructure of this scale, bankability will depend on generation costs, electricity selling prices, regulatory stability and risk allocation among generators, network operators and buyers. Consultation may reduce some permitting risk; it does not answer these financial questions.

European recognition may nevertheless facilitate preparation. In July 2025, the European Commission included Medlink Renewable Generation on its list of cross-border renewable energy projects. Listing makes it possible to seek support for studies or works under the Connecting Europe Facility, but is not a promise of a grant.

Long-term energy cooperation

Medlink forms part of an Algerian-Italian energy dialogue developed over several years. In 2022, President Abdelmadjid Tebboune discussed a subsea cable to deliver electricity to Italy and part of Europe. The project complements established natural gas trade and Europe’s desire to diversify supplies.

For Algiers, the challenge is turning abundant renewable resources into industrial capacity and export revenue while ensuring an export project does not divert investment needed for the domestic grid. Electrification of economic activity, service quality and rising domestic demand must therefore be reconciled with export contracts. This relationship will determine the cable’s economic and energy benefits for the country.

For Italy and the European Union, North African electricity could diversify energy sources and support decarbonization goals. Supply will be genuinely useful, however, only if transit rules, delivery guarantees and pricing mechanisms are clear. Stable political cooperation over several decades will also be decisive in recovering the cost of expensive assets.

The next test will be financial and technical

The next-stage timetable must clarify outstanding approvals, impact studies, purchase agreements and the final investment decision. Developers must also establish the division of responsibilities among Algerian generation, the transmission network and the subsea cable. Without these milestones, stated capacities remain a development scenario rather than construction under execution.

Italian consultation is therefore procedural progress, not yet a shift into operation. Medlink’s potential is real, but success will depend on consistency among generation ambitions, Algeria’s electricity needs, European consumer interests and financing conditions. Future announcements would benefit from clearly distinguishing what is being studied, authorized, financed and built.