The European Investment Bank (EIB) is supporting the development of the second electrical interconnector between Malta and Italy with €100 million.
The IC2 interconnector will consist of a new ~122-kilometer-long 225 MW HVAC electrical cable interconnection between the Terna substation at Ragusa, Sicily, and the Enemalta terminal station in Maghtab, to be laid in parallel to the existing HVAC cable link .
EIB approved the €100 million financing on July 8, 2025, with the signing held on April 23, allocating €49 million to Malta and €51 million to Italy.
The total project cost is estimated at €296.68 million, financed by EU funds under the European Regional Development Fund with €165.78 million, alongside the EIB loan and the Republic of Malta’s own resources.
EIB also provided advisory support through JASPERS, its joint initiative with the European Commission, offering guidance on project design, procurement and implementation. The project also benefited from earlier EIB advisory support during project preparation, including the assessment of its financial and economic viability, ensuring its maturity, financing eligibility and compliance with relevant EU requirements.
EIB Vice-President Marek Mora said: “Electricity interconnectors are essential to a secure, integrated and decarbonised European energy system. By backing Malta’s second interconnector with Italy, the EIB is strengthening energy security, facilitating cross-border electricity exchange and renewable integration, while ensuring that growing demand can be met in a reliable and sustainable manner. This project reflects the EIB’s key role in supporting strategic energy infrastructure across Europe.”
According to the bank, IC2 contributes to its sustainable energy and natural resources public policy goal, and supports its cross-cutting objectives for climate action and environmental sustainability, economic and social cohesion and, partially, security and defense.
The 100% government-owned Interconnect Malta is responsible for issuing tenders, implementing the project, and operating the assets under a public service obligation. The full interconnector capacity will be made available to Malta’s electricity distribution system operator Enemalta under a capacity agreement, with an annual tariff charged for its use.
The interconnector is scheduled to enter into operation in the first quarter of 2027.