New European power links needed for renewables, grid resilience, Hitachi Energy says

MILAN, July 8 (Reuters) - Europe and countries across the Mediterranean need more electricity connections to manage peak power demand efficiently and support the integration of renewable energy, a senior executive at Hitachi Energy told Reuters.

The comments come days after Portugal's energy minister said that Lisbon was exploring a power interconnection with Morocco to have an additional source of electricity in the event of supply disruptions. 

• Italian and Tunisian grid operators Terna and STEG have recently awarded Hitachi Energy, a subsidiary of Japan's Hitachi Ltd, a €770 million ($880 million) contract to build the converter stations for a new power link between Italy and Tunisia called Elmed.

• The link, designated as a strategic project by the European Commission, will be the first high-voltage direct-current interconnection between Europe and North Africa, creating a 600-megawatt link that can carry power to and from Italy.

• The connection will allow Italy to import electricity from renewable projects planned in Tunisia and strengthen both countries' ability to respond to periods of peak electricity demand, said Niklas Persson, CEO of Hitachi Energy Grid Integration Business Unit.

• "High-voltage direct-current technology is a great enabler to integrate renewables, but also to transport power over long distances without losses," Persson said, adding that the project will be operational in 2031.

• Under the Elmed project, Hitachi Energy's converter stations will transform alternating current into direct current for transmission across the 220-kilometre link and convert it back into alternating current for integration into local electricity grids.

• Alternating current is normally used in homes and businesses, while direct current is used to lower power losses when transporting electricity over long distances.

• Construction of the stations is expected to begin in about a year's time and will use equipment sourced in Europe, Persson said. ($1 = 0.8763 euros)

(Reporting by Francesca Landini; Editing by Nina Chestney and Mark Porter)