The UAE, Italy, and Albania have signed a tripartite cooperation agreement to build a subsea interconnection across the Adriatic Sea, valued at approximately €1 billion, with a target completion date of 2028.

Per multiple media reports, the project is designed to transfer renewable energy from Albania to Italy to strengthen energy infrastructure in the Mediterranean region. The energy generated in Albania will be transferred to Italy via an underwater cable crossing the Adriatic Sea that would add to existing connections between Italy and the Balkans that include a 430-km subsea power link from Montenegro to Italy. The undersea cable will have the capacity to carry up to 1,000 megawatts of electricity, marking a significant milestone in renewable energy integration.

The deal, signed at the World Future Energy Summit in Abu Dhabi, will leverage the UAE’s expertise in solar and wind energy to bolster Albania’s renewable energy capacity. “The investment agreement for the underwater connection of the energy distribution network with Italy, as well as for investments in increasing production from renewable sources in Albania, was signed today,” said the Albanian government in a statement.

The underwater cable would link the Albanian port of Vlore with Italy’s Puglia region. The key participants would be Italian grid operator Terna and the UAE’s National Energy Company (Taqa). The project would allow Albania to invest in and develop its untapped solar and wind potential, while helping Italy reduce CO2 emissions and decrease reliance on non-allied states.

UAE Industry and Technology Minister Sultan al-Jaber described the agreement as a “far-sighted collaboration” that connects Albania’s renewable energy potential, the UAE’s expertise and Italy’s sophisticated energy market. Al-Jaber, who also chaired the COP28 climate summit, said the initiative aligns with global goals to triple renewable energy capacity and transition away from fossil fuels.

Italy is currently developing the Elmed submarine cable between Italy and Tunisia and the SoutH2 Corridor for the transport of hydrogen from North Africa to Central Europe, passing through Italy.

In 2019, Italian energy firm Terna inaugurated a similar cable connecting Montenegro and Italy, following an investment of €1.1bn.