Terna (TRN) and STEG award Hitachi Energy €770 million Elmed project contract
Terna, the Italian grid operator, in partnership with its Tunisian counterpart STEG, has awarded Hitachi Energy a contract valued at approximately €770 million. The agreement covers the construction of converter stations for the Elmed project, marking a significant step towards the realisation of the first electrical interconnector between Italy and Tunisia. This strategic infrastructure is designed to bolster energy security and foster electricity market integration across Europe and North Africa. Terna shares are trading up 0.8% today at €10.24, from a previous close of €10.16.
Elmed Project Details
The Elmed project involves a 600 MW, 220 km submarine cable link. The converter stations, crucial for direct current energy transmission, will be established in two key locations: Partanna, Sicily, and Mlaabi, Tunisia. The contract award to Hitachi Energy, announced on 25 June 2026, underscores the progress of this internationally significant infrastructure, which aims to create an energy bridge across the Mediterranean.
This interconnection will facilitate the exchange of electricity and contribute to the diversification of supply sources. It will also optimise the utilisation of renewable energy, aligning with the energy transition objectives pursued by both nations. The 600 MW capacity of the submarine link is expected to ensure a substantial energy flow, supporting grid stability and promoting greater resilience within the regional energy system.
Why a new energy bridge is boosting Terna's shares
Terna operates Italy's national electricity transmission grid, acting as the backbone that moves power from where it's generated to homes and businesses across the country. Essentially, it’s the vital infrastructure ensuring the lights stay on and the system remains stable and secure. The company generates its revenue primarily through regulated tariffs for transmitting this energy, alongside its ongoing investments in modernising and expanding the grid.
The specific catalyst moving Terna's shares today is the significant €770 million contract awarded to Hitachi Energy for the converter stations of the Elmed project. This ambitious undertaking will establish the first submarine electrical interconnection between Italy and Tunisia, featuring a 600 MW capacity across a 220 km link. This strategic infrastructure project is designed to bolster energy security, diversify supply sources, and integrate electricity markets between Europe and North Africa, all while supporting the broader energy transition.
This positive development has seen Terna's shares rise by exactly 0.8% today, with the price currently trading at €10.24, up from yesterday's close of €10.16.
Think of Terna as the conductor of Italy's energy orchestra. Introducing a new, powerful instrument like the Elmed interconnector doesn't just add another note; it expands the orchestra's entire repertoire, making it more versatile and resilient. This new connection enhances the overall harmony and stability of the system, allowing for a more robust and adaptable performance.
Terna
Terna - Rete Elettrica Nazionale Società per Azioni (TRN) operates Italy's national electricity transmission grid, extending its reach across Euro-area countries and internationally. The utility organises its operations into Regulated, Non-Regulated, and International segments. Its core activities encompass the planning, development, management, and maintenance of high-voltage infrastructure and electricity transmission assets. Beyond grid operations, Terna provides telecommunications systems, connectivity services, and energy solutions. The company also designs and manufactures power transformers for various applications, including electricity transmission, distribution, and industrial uses. Furthermore, it produces marine and terrestrial cables, develops renewable energy projects, and undertakes private interconnector initiatives. Terna was established in 1999.