The European Bank for Reconstruction and Development (EBRD) has recently intended to finance the installation and turn on a 10-megawatt solar power station specifically the "Romust" area sited in the region of Tunisia to bring energy to the national grid using renewable sources.
The loan consists of 3.9 million euros loan from the EBRD and 1 million euros which are concessional financing from Finland who is a member of EBRD's climate action program for high impact (HIPCA - Finland).
Solar Power Station: Who Are the Main Players?
Recently, a company was engaged in the first project under the new regulatory framework for renewable energy by the Tunisian government. The project has been entrusted to the company following its public tender and needed the company to link a loan with local banks on a concessional basis.
The EBRD has carried out a significant role in developing the renewable energy sector in Tunisia since 2015, within the four years for which the organization has been present.
This Solar power station, we are talking about is not just a new path of development for Tunisia, but also a fulfillment of a commitment to increase electricity production under the category of renewable energy. A package of approximately 3.9 million euros is being given to "Centrale Solaire Feriana", a special purpose company owned by Qair company, a European company specialized in renewable green energy.
The solar power station which totals 10 megawatts of solar PV is being financed under the EBRD's Private Sector Renewable Energy Framework for the Southern and Eastern Mediterranean region. The greenhouse gas reduction that the project yields is equivalent to an annual decrease of 8560 tons (* annually).
Aida Sitdikova, Director of the EBRD and Head of Energy in Eurasia, Middle East, and Africa, commented: “We are extremely pleased to work with (Qair) in Tunisia to accelerate the energy transition, a country with very high wind and solar potential.This investment is going to help develop privately owned renewable energy aspects and create an energy mix that is diversified”.
Moreover, the Chief Executive Officer of the Affiliated Company Qair, Eric Thaelmann stressed, “We are delighted to have the ability to be a successful strategic partner of EBRD for the enlargement of sustainable development and hybrid society by creating cleaner expanses, culminating in a brighter future for all, which matches well with the Tunisian Proposal to reach a 30% on renewable energy by 2030.”
“Qair” is an established European renewable energy company that develops, finances, operates, and owns Solar power stations of renewable energies (photovoltaic energy, wind energy, water energy, hydrogen energy). The firm currently has an operational base of 1.4 gigawatts and introduces innovative projects which are under construction and operates in countries accessing funding from EBRD.
Since the EBRD began operations in Tunisia in 2012, it has invested more than 2.2 billion euros in 70 projects and provided support to more than 1,200 small and medium-sized enterprises through technical assistance funded by the European Union.
Tunisia’s Renewable Energy Journey
Having started years ago, Tunisia has been entering the renewable energy sector. Tunisia's seventh goal was to break the limits in the renewable energy sector. The moving power behind the Tunisian plan is not only the huge resources of the renewable energies the country has but also the geographical location that lies between Africa and Europe which allows Tunisia to meet its energy needs and transform into a place for sustainable energy production and export.
The country’s development plan has pointed out the energy sector as the engine for driving and encouraging the green growth of Tunisia.
It is also said by the World Bank in the same context that building the renewable energy generation capacity can be one way to lower the cost of energy production and that the state should not have to pay government money to support the energy sector, instead raise the fraction of renewable energy in the total energy production of the country.
This also refines the state budget by putting less emphasis on the use of fossil fuels and thereby means that the trade balance is being equalized.
Aiming for 35% Renewable Energy by 2030
With a conversion rate of merely 8% in 2022, the government of Tunisia is targeting 35% of the installed electricity production capacity to be derived from the renewable energy by the year 2030, and for additional 1.7 gigawatts of electricity to be generated by 2025 most will comes out of Solar power stations.
Given the continuous technical and financial support the World Bank gives to the Tunisian government, this support plays an essential role in mobilizing one billion dollars for the investment in the renewable energy projects in the next 24 months.
However, Tennisia's Energy sector is still facing major obstacles with the biggest being the long process of defining the rights in renewable energy. The whole procedure takes about 2 years to start the electricity generation. Nevertheless, they are not being discouraged as Tunisia has turned out to be a forerunner to the global warming phenomenon.
However, Tennisia's Energy sector is still facing major obstacles with the biggest being the long process of defining the rights in renewable energy. The whole procedure takes about 2 years to start the electricity generation. Nevertheless, they are not being discouraged as Tunisia has turned out to be a forerunner to the global warming phenomenon.