BRUSSELS — The European Union is betting that the future of its energy system lies under the North African sun.
On Tuesday, the European Commission pledged €5 billion of EU money to renewables projects in North Africa and the Middle East, which could feed electricity back into Europe’s grid.
The dream is that solar panels in the sun-soaked Sahara Desert and wind turbines along the southern and eastern shores of the Mediterranean generate electricity that is then sent through high-voltage transmission lines under the sea and into Europe’s grid.
That electricity would replace imported fossil fuels, helping Europe meet its ambitious electrification and climate targets.
The Commissions hopes the EU funding will lure private money to co-invest, mobilizing up to €25 billion of investment in solar, wind, hydrogen, electricity grids and other clean technologies by 2035.
“The EU’s bill for fossil fuel imports has increased by over €47 billion in the past 100 days, but not a single molecule of energy in addition,” EU energy chief Dan Jørgensen said during a press conference announcing the new initiative on Tuesday.
European Commissioner Dan Jørgensen speaks to the media at the Berlaymont building in Brussels on April 22, 2026. | Thierry Monasse/Getty ImagesBy 2035, the Commission expects the initiative to support the development of at least 15 gigawatts of new renewable-energy capacity, create more than 100,000 jobs and strengthen electricity interconnections across the Mediterranean.
The solution to energy security
The launch of the initiative, known as T-MED, comes as Europe faces renewed volatility in global energy markets because of the war in Iran. Jørgensen linked the initiative directly to the current crisis, arguing that recent events have once again exposed the risks of relying on fossil fuels.
“Our energy security must be based on electrified energy systems that are based on clean energy, modern grids and increased connectivity,” he said.
According to Brussels, North Africa and the Middle East holds around 2,300 gigawatts of renewable-energy potential, more than twice the EU’s current installed capacity. Solar and wind power can be produced 30 to 40 percent more cheaply than in Europe, the Commission estimates.
Yet the scale of the challenge remains enormous.
The Commission’s own estimates suggest the region will require well over €100 billion in investment by the end of the decade to fully exploit its renewable-energy potential. Officials acknowledged Tuesday that the €25 billion target is only a starting point.
The Commission hopes a new T-MED investment platform, due to become operational in September, will help bridge that gap by bringing together governments, development banks, project developers and private investors. At the same time, Brussels plans to push partner countries to simplify permitting procedures, improve grid access and strengthen regulatory frameworks in order to make projects more attractive to investors.
The initiative resembles a strategy Europe has pursued before. More than a decade ago, the Desertec project sought to harness North African solar power and export it to Europe. Despite early enthusiasm, the project ultimately failed amid political uncertainty, financing challenges and concerns over the cost of new infrastructure.
Similar projects in other parts of the world have also collapsed — the Sun Cable project, for example, which promised to power Singapore with Australian sunlight via what would have been the longest undersea power cable in the world, was a flop.