The European Bank for Reconstruction and Development (EBRD) has approved financing for a new 10-megawatt solar power plant in Romust, Tunisia, marking a significant step in the nation’s green energy transition.
The total financing package of 4.9 million euros includes a 3.9 million euro loan from the EBRD and 1 million euros in concessional funding from Finland’s High Impact Partnership with Climate Action (HIPCA). This project is set to advance Tunisia’s renewable energy goals and boost the share of clean energy in its national grid.
Solar Power Station: Who Are the Main Players?
Following a competitive tender process, European renewable energy company Qair was awarded the first project under Tunisia’s new renewable energy regulatory framework. This represents a significant step forward in the country’s commitment to increasing its electricity production from clean sources. Since 2015, the EBRD has played a pivotal role in developing Tunisia’s renewable energy sector.
Financed under the EBRD’s Private Sector Renewable Energy Framework for the Southern and Eastern Mediterranean region, the 10-megawatt solar power plant is expected to reduce greenhouse gas emissions by approximately 8,560 tons annually.
“We are delighted to partner with Qair in Tunisia to accelerate the country’s energy transition,” said Aida Sitdikova, Director of the EBRD and Head of Energy in Eurasia, Middle East, and Africa. “Tunisia boasts significant wind and solar potential, and this investment will contribute to the development of private-sector renewable energy projects and a diversified energy mix.”
“We are delighted to partner with the EBRD to contribute to Tunisia’s sustainable development and the transition to a low-carbon economy,” commented Eric Thaelmann, Chief Executive Officer of Qair. “This project aligns with Tunisia’s ambitious goal of achieving 30% renewable energy generation by 2030.”
Qair, a well-established European renewable energy company, specializes in developing, financing, operating, and owning solar, wind, hydro, and hydrogen energy projects. With a current operational capacity of 1.4 gigawatts, Qair is actively involved in innovative projects across various countries, including those supported by the European Bank for Reconstruction and Development (EBRD).
Since beginning its operations in Tunisia in 2012, the EBRD has invested over €2.2 billion in 70 projects and provided support to more than 1,200 small and medium-sized enterprises through EU-funded technical assistance.
Tunisia’s Renewable Energy Journey
For several years, Tunisia has been making steady progress in the renewable energy sector. The country’s seventh development goal focuses on overcoming barriers in this field by leveraging its abundant natural resources and strategic geographic location between Africa and Europe.
By harnessing this renewable potential, Tunisia aims to meet its domestic energy needs while also becoming a hub for sustainable energy production and export. The energy sector has been identified as a key driver of the nation’s green growth strategy.
As the World Bank points out, increasing renewable energy generation capacity can lead to lower energy production costs. By reducing reliance on fossil fuels, governments can avoid costly subsidies and improve their fiscal balances. This shift toward renewables not only enhances energy security but also contributes to a more sustainable future.
Aiming for 35% Renewable Energy by 2030
Tunisia has set an ambitious target to increase its renewable energy share in the electricity mix from the current 8% to 35% by 2030. To achieve this, the country plans to add another 1.7 gigawatts of solar power capacity by 2025.
With continued financial and technical support from the World Bank, the country also aims to mobilize one billion dollars for renewable energy projects over the next 24 months.
Despite significant progress, Tunisia’s energy sector still faces challenges, particularly the lengthy process of acquiring rights for renewable energy projects, which can take up to two years. However, Tunisia’s commitment to addressing climate change remains strong, and the country is determined to become a leader in renewable energy adoption.
