Tunisia has secured a €61.3 million financing package to construct a new 100-megawatt solar photovoltaic plant in the Sidi Bouzid region. The funding, a collaborative effort between the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the European Union, is poised to significantly advance Tunisia’s renewable energy ambitions.
The financial injection will support the Scatec-Aeolus joint venture, specifically the project company Scatec Khobna PV Power. Once completed, the facility is projected to generate an average of 252 gigawatt-hours of clean electricity annually, effectively cutting carbon dioxide emissions by roughly 107,000 tonnes each year. Beyond its environmental impact, the project marks a pivotal moment for private-sector involvement in Tunisia’s state-dominated energy landscape, showcasing a large-scale, privately financed renewable venture.
The financing structure underscores a robust international commitment, with the EBRD’s contribution backed by a first-loss guarantee from the European Fund for Sustainable Development Plus (EFSD+). The EIB’s participation is similarly fortified through the Connectivity Component of the EFSD+ Open Architecture Guarantee Agreement. Additionally, the initiative will receive €5.5 million in grant funding from the EU’s Neighbourhood Investment Platform, earmarked for critical transmission infrastructure, as part of a wider €35.8 million EU Global Gateway package for Tunisian renewables.
This development is a cornerstone of Tunisia’s 1.7 GW renewable energy concession programme launched in 2022, designed to hit the national target of sourcing 35% of its energy from renewables by 2030. European officials lauded the project as a testament to “Team Europe” cooperation and Tunisia’s determined reform agenda, particularly in the face of current energy security challenges.
Beyond the hardware, the project will foster human capital through technical cooperation support from the EBRD’s Shareholder Special Fund, focusing on capacity-building in the Sidi Bouzid and Gabès regions. Community engagement programmes, including awareness campaigns on gender-based violence and care-related benefits, are also planned to encourage greater female participation in the energy sector.
The funding is part of the EFSD+, established in 2021 to galvanise investment in partner nations, and aligns with the EU’s broader Global Gateway strategy. Since commencing operations in Tunisia in 2012, the EBRD has invested over €3 billion across 90 projects, reinforcing its long-term commitment to the country’s economic development.
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