EBRD Supports Tunisia’s Renewable Energy Goals With €61.3 Million Financing For 100 MW Solar Project

Tunisia is set to strengthen its renewable energy capacity with the development of a new 100 MW solar photovoltaic (PV) plant in the Sidi Bouzid region, backed by significant financial support from the European Bank for Reconstruction and Development (EBRD), the European Union (EU), and the European Investment Bank (EIB). The project will be developed by the Scatec-Aeolus joint venture through Scatec Khobna PV Power, a special-purpose company established in Tunisia for the construction and operation of the facility.

The EBRD is providing a loan as part of a €61.3 million financing package that will help bring the project to life. The investment represents an important step in Tunisia’s efforts to improve energy security, diversify its energy sources, and reduce dependence on natural gas. Once operational, the solar plant is expected to generate around 252 GWh of renewable electricity each year, enough to make a meaningful contribution to the country’s power supply while significantly reducing carbon emissions.

Over its lifetime, the project is expected to cut annual CO₂ emissions by approximately 107,000 tonnes.Beyond its environmental benefits, the project is also expected to encourage greater private-sector involvement in Tunisia’s renewable energy sector. As one of the country’s major privately financed renewable energy developments, it demonstrates growing investor confidence in Tunisia’s clean energy market and supports the country’s transition towards a more sustainable energy future.

The financing structure includes support mechanisms from the European Union. The EBRD’s contribution is backed by a first-loss guarantee provided under the European Fund for Sustainable Development Plus (EFSD+), while the EIB’s participation is supported through the Connectivity Component of the EFSD+ Open Architecture Guarantee Agreement.

These guarantees help reduce investment risks and encourage funding for strategic infrastructure projects.In addition, the project will receive €5.5 million in grant funding from the EU’s Neighbourhood Investment Platform (NIP). The grant will help finance the transmission infrastructure needed to connect the solar plant to the national grid.

This funding forms part of a wider €35.8 million package under the EU’s Global Gateway initiative, which aims to support renewable energy investments and sustainable infrastructure development across Tunisia.The solar project is part of Tunisia’s larger 1.7 GW renewable energy concession programme launched in 2022.

The programme plays a key role in the country’s ambition to generate 35 per cent of its electricity from renewable sources by 2030. Expanding solar and other renewable energy projects is seen as essential to meeting growing electricity demand while reducing greenhouse gas emissions and reliance on imported fossil fuels.

Commenting on the project, Harry Boyd-Carpenter, Managing Director of the EBRD’s Sustainable Infrastructure Group, highlighted the importance of the partnership between international financial institutions, private investors, and the Tunisian government. He noted that the project will help deliver affordable and clean energy while also strengthening the country’s energy security.

He also praised Tunisia’s efforts to advance energy sector reforms and support the transition to a more sustainable energy system.EIB Vice-President Ioannis Tsakiris described the project as an important milestone in Tunisia’s efforts to provide reliable, affordable, and sustainable energy. He emphasised that the collaboration reflects the broader Team Europe approach, which brings together European institutions to support strategic investments and strengthen energy infrastructure in partner countries.

The European Union also underscored the significance of the investment. EU Ambassador to Tunisia Giuseppe Perrone said the project reflects the commitments outlined in the EU-Tunisia memorandum of understanding on energy signed in June 2024. He noted that the initiative aligns with broader efforts to improve energy security and accelerate decarbonisation through increased renewable energy deployment.

Alongside the financing package, the EBRD will provide technical support funded through its Shareholder Special Fund. This programme will focus on building local skills and supporting workforce development in the energy sector, particularly in the Sidi Bouzid and Gabès regions. The initiative aims to address emerging labour market needs while ensuring that local communities benefit from the project’s development.

The technical cooperation package will also include awareness campaigns in the Khobna and Mezzouna areas focused on gender-based violence and harassment prevention, as well as promoting care-related benefits. These efforts are designed to create a more inclusive working environment and encourage greater participation of women in the renewable energy sector.The project also highlights the growing role of the European Fund for Sustainable Development Plus.

Established in 2021, EFSD+ supports partner countries through grants and financial guarantees that help attract public and private investment into sustainable development projects. With a global guarantee capacity of €39.8 billion for the 2021–2027 period, the programme serves as a key pillar of the EU’s Global Gateway strategy, supporting infrastructure, climate, and development goals around the world.

Tunisia has been one of the beneficiaries of EBRD support for more than a decade. Since 2012, the bank has invested over €3 billion across 90 projects in the country and has helped nearly 2,000 local small and medium-sized enterprises through EU-funded technical assistance programmes. The new solar project further strengthens this long-standing partnership and marks another important step in Tunisia’s transition towards a cleaner, more resilient, and sustainable energy future.