The Mediterranean region is emerging as a key area for energy cooperation and renewable energy development. The Mediterranean basin, characterised by an increasing energy demand, especially in the countries of the southern bank, faces significant challenges related to energy security and environmental sustainability. These factors are pushing towards greater integration of regional energy markets and an acceleration in the transition to clean energy sources. Cross-border energy cooperation is becoming increasingly important, with a number of initiatives aimed at exploiting the potential of renewable energies and creating a more integrated and sustainable energy system. However, the path towards full Mediterranean energy integration is still fraught with obstacles, including differences in national regulatory frameworks, infrastructure deficiencies and the need to mobilise large investments. In this context, the transfer of technology and know-how between the two shores of the Mediterranean emerges as a key element to overcome existing challenges and realise the region’s potential in terms of clean energy.
Major projects
The Mediterranean Solar Plan (MSP) of the Union for the Mediterranean is one of the most ambitious initiatives for the development of renewable energies in the region. Launched by the European Union in 2008, the MSP aims to develop 20 GW of new renewable energy capacity by 2020, mainly through solar and wind projects. The plan aims not only to increase clean energy production, but also to promote energy efficiency and strengthen electricity interconnections between Mediterranean countries. To support the implementation of the MSP, the Mediterranean Solar Plan Project Preparation Initiative (MSP-PPI), a joint initiative of the European Investment Bank, the European Commission and other financial partners, has been launched. The MSP-PPI focuses on preparing concrete projects in the fields of renewable energy, energy efficiency and grid connections, covering project preparation costs and facilitating access to finance. Despite the ambitious goals, the implementation of the MSP has faced several challenges, including the need to harmonise national regulatory frameworks and mobilise large private investment.
The Euro-Arab Mashreq Gas Market (EAMGM) is another key project for Mediterranean energy integration, focusing on the natural gas sector. Launched in 2005, the EAMGM aims to create a regional integrated gas market between Egypt, Iraq, Jordan, Lebanon, Syria and Turkey, with the aim of extending it later to other countries in the region. One of the long-standing problems of the area is in fact the lack of "horizontal" integration between the countries of the South bank, which could not be compensated by a greater North-South interconnection. The project focuses on the harmonisation of national gas laws and regulations, the promotion of cross-border infrastructure investment and the development of technical and managerial skills. The EAMGM has helped to improve regional cooperation in the gas sector by facilitating the exchange of experience and best practices between participating countries. However, political instability in some countries of the region and differences in national regulatory frameworks have slowed down the integration process. Despite these challenges, the EAMGM remains an important forum for energy dialogue and cooperation in the Arab Mashreq region, with potential positive impacts also for Euro-Mediterranean energy integration.
The potential of renewable energies
The potential of renewable energy in the Mediterranean region is considerable, with particular reference to solar and wind technologies. According to a recent study by ECCO Climate, the region’s overall technical potential for these energy sources would exceed 3 TW, a figure that stands in stark contrast to the current installed capacity of only 90 GW for photovoltaic and 82 GW for wind. This gap highlights the huge growth space for the renewable sector in the Mediterranean area. North African countries in particular enjoy extremely favourable conditions for the development of solar energy, with some of the highest levels of radiation in the world. These natural conditions provide a significant competitive advantage for the development of large-scale projects, which could not only meet local energy needs but also allow the export of clean energy to Europe, Contributing to the decarbonisation of the entire Mediterranean basin.
However, exploiting this vast potential requires massive investment in new generation facilities and grid infrastructure. ECCO Climate estimates that annual investments of around $120 billion would be needed to achieve the target of installing 1 TW of renewable capacity by 2030. This figure, although considerable, must be seen in the context of recent declines in solar and wind energy costs, particularly significant in North Africa. Large-scale projects in these areas could benefit from economies of scale, further reducing the costs of producing renewable energy. In addition, the development of a local industrial chain for the production of components for solar and wind installations could help to reduce supply costs and maximise positive economic spillovers for countries in the region.
In addition to the environmental benefits in terms of reducing greenhouse gas emissions, such development of the renewable energy sector in the Mediterranean could generate important economic and employment benefits. ECCO Climate estimates that the creation of 1 TW of renewable capacity could lead to the creation of around 3 million new jobs in the solar and wind technologies sector alone. These jobs would be spread across the value chain, from component manufacturing to plant installation and maintenance, offering opportunities for skilled employment in regions often suffering high unemployment rates, especially among young people. The development of local skills in these high-tech sectors could also foster innovation and economic diversification, reducing dependence on traditional sectors such as hydrocarbons in some countries in North Africa and the Middle East.
The integration of electricity markets
The integration of electricity markets in the Mediterranean is a crucial element for the large-scale development of renewable energies in the region. Cross-border interconnection projects, such as Elmed between Tunisia and Italy or EuroAfrica Interconnector between Egypt, Cyprus and Greece, aim to create a more flexible and resilient regional electricity system. According to the European Economic and Social Committee, these interconnection projects are crucial for managing intermittent renewable energy sources and optimising the use of energy resources at basin level. The Mediterranean Electricity Interconnection Master Plan 2020, developed by the Mediterranean Transmission System Operators (Med-TSO), has identified 15 priority interconnection projects for a total of 18 GW of transmission capacity. These projects would not only facilitate the integration of renewable energies, but also contribute to improving energy security and reducing electricity costs through increased competition in regional energy markets.
However, the implementation of these cross-border infrastructures is facing significant technical, financial and geopolitical obstacles. The European Economic and Social Committee stresses the need to address the lack of a harmonised regulatory framework at regional, national and sub-regional levels, which is an obstacle to the development of an integrated Mediterranean energy market. The interoperability of electrical systems and proper management of interconnections are crucial elements to be addressed. In particular, the lack of modern south-south interconnections or their low utilisation with modest electrical exchanges (especially in the case of the Maghreb) represent significant challenges. To overcome these obstacles, strong coordination between the countries involved is necessary to harmonise technical standards, define mechanisms for sharing costs and benefits, and overcome political tensions which in some cases hamper regional energy cooperation.
The EuroAfrica Interconnector project is a concrete example of how the integration of electricity markets can promote the development of renewable energies in the Mediterranean. This project aims to connect the electricity grids of Egypt, Cyprus and Greece through a 1396 km submarine cable with a transmission capacity of 2000 MW. According to the project’s official website, the interconnection will allow electricity exchange between the three countries, facilitating the integration of renewable energies and contributing to the region’s energy security. The project has received political support from leaders in Egypt, Cyprus and Greece, as evidenced by the joint statement adopted at the 7th Trilateral Summit in Cairo. However, the technical and financial complexity of the project, which requires significant investment and coordination between different actors, underlines the challenges associated with the implementation of such cross-border infrastructures in the Mediterranean context.
The role of the European Union
The role of the European Union in promoting Mediterranean energy cooperation is of fundamental importance. The EU uses a number of instruments to promote the development of an integrated and sustainable energy system in the region. The European Neighbourhood Policy (ENP) is the main reference framework for the EU’s relations with its southern and eastern neighbours. Launched in 2004 and revised in 2015, the ENP aims to promote stability, security and prosperity in regions close to the EU. In the energy context, the ENP focuses on promoting tailor-made partnerships with partner countries based on shared interests and a flexible approach. Through the ENP, the EU offers partner countries greater access to its market, regulatory framework and programmes, thus facilitating energy cooperation and cross-border infrastructure development.
The European Fund for Strategic Investments (EFSI) and its successor, InvestEU, play a crucial role in catalysing public and private investment in energy infrastructure in the Mediterranean region. These financial instruments aim to mobilise private capital through public guarantees, reducing the risk for investors and facilitating the implementation of strategic projects in the field of renewable energy and energy efficiency. At the same time, specific initiatives such as the "Paving the Way for the Mediterranean Solar Plan" programme aim to create a regulatory and market framework favourable to the development of renewables in partner countries. These initiatives focus on the harmonisation of technical standards, the creation of effective support mechanisms and the training of local expertise in the clean energy sector.
However, as highlighted by the European Economic and Social Committee (the EU’s consultative body comprising business and consumer representatives), the EU approach must avoid imposing pre-packaged models, Focusing instead on removing specific barriers to private investment in renewables in each partner country. Improving the business environment in the southern and eastern Mediterranean countries is essential to attract more investment in the energy sector. This requires the removal of systemic barriers related to competition, liberalisation of electricity markets, lack of independent regulatory authorities and access to land for renewable energy projects. Targeted financial and technical support from the EU, conditional on concrete reforms in these areas, could be more effective in promoting a sustainable energy transition in the region. This approach would create a sense of ownership in the partner countries and adapt EU support to each country’s specific ambitions and challenges.
The challenges of climate change
The challenges posed by climate change make it increasingly urgent to accelerate the energy transition in the Mediterranean. The region is considered one of the major global climate hotspots, with particularly severe impacts expected in terms of rising temperatures, drought and sea level rise. In this context, the countries of the southern Mediterranean have adopted national plans for reducing greenhouse gas emissions and ambitious targets for the development of renewable energies under the Paris Agreement. However, as a recent study by the Policy Center for the New South shows, these commitments are largely conditional on international financial support. The ability to mobilise adequate investment is therefore a crucial challenge for the success of the energy transition in the region. At the same time, population growth and economic development are leading to a significant increase in primary energy consumption, particularly in North African and Middle Eastern countries, making the balancing of energy security even more complex, Affordability and environmental sustainability.
The European Union could play a key role in facilitating the Mediterranean energy transition by mobilising the necessary funding and providing technical support to partner countries. However, as the Policy Center for the New South has pointed out, it is essential that the European approach avoid imposing pre-packaged models, Focusing instead on removing specific barriers to private investment in renewables in each country. Targeted financial and technical support, conditional on the implementation of concrete energy reforms, could be more effective in promoting a sustainable transition in the region. This requires a careful analysis of the specific challenges and opportunities of each national context, taking into account differences in terms of energy mix, regulatory framework and institutional capacity. In particular, obstacles such as the lack of independent regulatory authorities, market access barriers for independent energy producers and land access difficulties for renewable energy projects need to be addressed.
A pragmatic approach to Euro-Mediterranean energy cooperation, focusing on the removal of legal, regulatory and financial barriers to private investment in renewable s; Could generate significant benefits for both sides of the Mediterranean. Helping the countries of the region to meet their growing energy needs in a sustainable way would open up new business opportunities for European companies in this sector, while contributing to the political and economic stability of the region. In addition, as ECCO Climate has shown, the development of an interconnected and renewable Mediterranean energy system could create around 3 million new jobs in the solar and wind technologies sector alone. Realising this potential, however, requires a holistic approach, taking into account not only the technical and economic aspects but also the social and political dimensions of the energy transition. This implies the need to promote an inclusive dialogue between all relevant actors in order to build a shared vision for the energy future of the Mediterranean region.
Mediterranean energy cooperation
Energy cooperation in the Mediterranean is indeed at a crucial turning point. The potential for renewable energy development in the region is considerable, but will require a significant increase in investment and regional cooperation to fully exploit it. According to a report by the European Investment Bank (EIB), the technical potential for renewable energy in the southern and eastern Mediterranean exceeds 10,000 TWh per year, far exceeding the region’s current and future energy needs. However, to realise this potential, investments of some €250 billion are estimated to be needed by 2030. The integration of electricity markets will play a key role in this process, allowing for more efficient management of intermittency of renewable sources and optimising the use of energy resources at basin level. Interconnection projects such as ELMED between Tunisia and Italy or EuroAfrica Interconnector between Egypt, Cyprus and Greece are concrete examples of initiatives to create a more flexible and resilient regional electricity system.
Transfer of technology and know-how, together with the creation of a stable and investment-friendly regulatory framework, will be key elements for the success of the Mediterranean energy transition. As highlighted by the Policy Center for the New South, it is essential that countries in the region develop local renewable energy capacity, not only to ensure long-term sustainability of projects, But also to maximise the economic and employment benefits of energy transition. At the same time, creating a regulatory environment conducive to private investment is crucial for attracting the capital needed. This requires the removal of systemic barriers related to competition, liberalisation of electricity markets, lack of independent regulatory authorities and access to land for renewable energy projects. The role of the European Union as an investment catalyst and reform promoter will be crucial in this context. Through instruments such as the European Neighbourhood Policy and the European Strategic Investment Fund, the EU can help to mobilise financial and technical resources to support the energy transition in the region.
However, the success of this cooperation will depend to a large extent on the ability to adopt a flexible approach adapted to the specificities of each partner country, avoiding pre-packaged solutions. As highlighted by a Bruegel policy brief, it is important that the European approach does not impose its own regulatory model but focuses instead on removing specific barriers to private investment in renewables in each country. Targeted financial and technical support, conditional on the implementation of concrete energy reforms, could be more effective in promoting a sustainable transition in the region. If managed properly, the energy transition in the Mediterranean has the potential to bring significant environmental, economic and geopolitical benefits on both sides. In addition to helping to combat climate change, it could boost economic growth, create new jobs and strengthen regional energy security. In addition, enhanced energy cooperation could act as a catalyst for wider economic and political integration in the Mediterranean basin, contributing to a more sustainable and prosperous future for the entire region.
Fonti e documenti
Climate and energy priorities for the European Commissioner for the Mediterranean
Energy policies and strategies in the Euro-Mediterranean region
The Euro-Mediterranean energy relationship: a fresh perspective
Mediterranean Solar Plan – Project Preparation Initiative (MSP-PPI)
Energy Cooperation in the Mediterranean Sea
Renewable Energy in the Euro-Mediterranean Framework
The Mediterranean Solar Plan Project Preparation Initiative begins
Five key action areas to put Europe’s energy transition on a more orderly path
Energy Transition in the Mediterranean: What Challenges and Potentials ?
Setting the scene for an interconnected, renewable Mediterranean energy system
Africa is leading the way in solar power potential
JOB CREATION AND SKILLS DEVELOPMENT DURING THE ENERGY TRANSITION – MOROCCO