The French government launched a project on 20th November 2009 under the aegis of the Mediterranean Solar Plan (MSP). It had two aims: firstly to study the feasibility of long-distance direct current links between solar and wind farms and areas of consumption on either side of the Mediterranean; secondly, to set up an industrial partnership.

On the 5th July 2010, twelve companies met in Paris in the presence of Jean-Louis Borloo and Henri Guiano to sign a draft partnership agreement. The purpose of the agreement was to investigate the feasibility of an electricity network between the North and South rims of the Mediterranean and to develop interconnections around the Mediterranean basin.

The agreement was made concrete on 9th December 2010 when Medgrid was set up at the behest of Eric Besson. This limited company now includes twenty shareholders.

Consistent with the aim of a 20GW increase by 2020 in renewable electricity from SEM countries, Medgrid’s goals are to:

• Draft a technical and financial plan for a trans-Mediterranean network to be implemented by 2020, leading to concrete projects;
• Promote a regulatory framework for the exchange of electricity that is favourable to investment and improves the viability of projects on the southern rim of the Mediterranean;
• Assess the benefits of investment in infrastructure and of electricity exchanges on growth, economic activity and jobs;
• Develop technical cooperations with countries on the southern rim of the Mediterranean around electrical network projects;
• Promote European technology and industry on the global market, especially in the areas of renewable energy generation, transmission of direct current and submarine high-voltage power cables.

Medgrid was set up to develop electrical interconnections between countries north, south and east of the Mediterranean.

Since its creation in December 2010, more than 20 French, German, Spanish, Italian, Moroccan, Egyptian, Syrian and Jordanian companies have joined. All sectors of the electricity market are represented in the same Mediterranean joint venture – generation, transmission and distribution, as well as infrastructure financing.

The challenges faced by Medgrid are strategic:

• To respond to a sharp rise in demand for electricity in SEM countries (to more than 6% a year), that is driving economic and social development.

Electrical interconnection between countries will improve security of supply and create a more efficient and competitive electricity network.

• To encourage the development of renewable wind and solar electricity. A new transmission network would enable this electricity to be carried to distant areas of consumption and to address the intermittence of these generation methods.

• To reinforce the security of supply by diversifying sources of electricity and reducing dependence on fossil fuels.

• To develop new green energy industries in cooperation with northern, southern and eastern Mediterranean countries.

Medgrid currently has 20 shareholders- Abengoa, Alstom grid, Areva renouvelables, Atos WorldGrid, CDC infrastructures, EDF, Ineo (GDF SUEZ), Nemo, Nexans, Nur Energie, ONE, Pan Med trading and investment, Prysmian, Red Eléctrica, RTE, Siemens, Soitec, Taqa Arabia, Terna and Walid Elias Establishment. The French development agency AFD has also signed a strategic and financial agreement with Medgrid.

Medgrid invites any company interested in taking part in the project to contact Medgrid directors by mail to arrange a meeting. Becoming a shareholder involves a capital commitment of 200,000 Euros per year for three years. Shareholders are entitled to take part in the five Medgrid working groups: Planning, Economy, Regulation, Financing and Technology, and to receive information on methods and feasibility studies. Shareholders are also able to take part in guiding and implementing the schedule of work.

The main purpose of DII is to generate renewable electricity and promote solar technology, with a long-term goal of 2050, whilst Medgrid has a medium-term goal of 2020-2030 and focuses on electricity transmission and developing interconnections.

DII and Medgrid coordinate their activities to avoid overlapping.