The European Bank for Reconstruction and Development (EBRD) has approved a €12.5 million ($13.7 million) loan to finance the construction of two 60 MW solar power plants in Tozeur and Sidi Bouzid, Tunisia. The projects, developed by Scatec and Aeolus, will enhance energy security and support Tunisia's green transition.
The EBRD is financing the construction and operation of two solar plants in Tunisia. Its funding package, co-financed by French development agency Proparco, consists of a loan of up to €12.5 million, alongside a concessional tranche of €8.2 million from the Clean Technology Fund and €4.6 million from the Global Environment Facility.
The two solar plants in Tozeur and Sidi Bouzid will be developed by Scatec and Aeolus, a unit of Toyota Tsusho. They will be the developers’ first utility-scale projects in Tunisia and are expected to cut annual carbon emissions by up to 108,000 tons once operational. The projects also qualify for a financing program run by Japan’s Ministry of Environment in collaboration with Tunisia.
Nandita Parshad, managing director of the EBRD’s Sustainable Infrastructure Group, said the projects are “testament to the sponsors’ commitment to supporting the development of Tunisia’s renewable energy sector.”
The EBRD said that since 2012, it has invested more than €2.3 billion in 73 projects in Tunisia and provided support to around 2,000 small- and medium-sized local enterprises through European Union-funded technical assistance schemes.
Earlier this year, the EBRD announced financing for the construction of a 10 MW solar plant in the Feriana region of Tunisia, while Dubai-based Amea Power began work on a 120 MW plant located in the northeastern part of the country.
Tunisia had deployed 506 MW of solar by the end of 2023, according to figures from the International Renewable Energy Agency (IRENA).
