The European Bank for Reconstruction and Development (EBRD) has recently approved financing for a 10-megawatt solar power plant in Romust, Tunisia. The loan, totaling 4.9 million euros, includes a 3.9 million euro loan from the EBRD and 1 million euros in concessional financing from Finland under the High Impact Partnership with Climate Action (HIPCA) program. This project will contribute to Tunisia's renewable energy goals and increase the share of clean energy in the national grid.
Solar Power Station: Who Are the Main Players?
Recently, a company has been awarded the first project under Tunisia's new renewable energy regulatory framework. Following a competitive tender process, the company secured financing from local banks with the support of the European Bank for Reconstruction and Development (EBRD). Since 2015, the EBRD has played a pivotal role in developing Tunisia's renewable energy sector.
This solar power station represents a significant step forward for Tunisia's renewable energy sector, fulfilling the country's commitment to increasing electricity production from clean sources. Qair, a European renewable energy company, has been selected to develop the project, and will receive a €3.9 million loan from the European Bank for Reconstruction and Development (EBRD).
The 10-megawatt solar power plant, financed under the EBRD's Private Sector Renewable Energy Framework for the Southern and Eastern Mediterranean region, 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," said 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 its operations began in Tunisia in 2012, the EBRD has invested over €2.2 billion in 70 projects and provided support to over 1,200 small and medium-sized enterprises through EU-funded technical assistance.
Tunisia’s Renewable Energy Journey
Tunisia has been steadily progressing in the renewable energy sector for several years. The country's seventh development goal emphasizes breaking barriers in renewable energy, leveraging its abundant resources and strategic geographic location between Africa and Europe. By harnessing its renewable energy potential, Tunisia aims to meet its domestic energy needs and become a hub for sustainable energy production and export. The energy sector has been identified as a key driver of Tunisia'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 towards renewable energy not only enhances energy security but also contributes to a more sustainable future.
Aiming for 35% Renewable Energy by 2030
Tunisia aims to increase its renewable energy share in the electricity production mix from the current 8% to 35% by 2030. The country plans to add an additional 1.7 gigawatts of solar power capacity by 2025.
With the continued financial and technical support from the World Bank, Tunisia 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 in 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.
However, Tunisia's energy sector still faces significant challenges, particularly the lengthy process of acquiring rights for renewable energy projects, which can take up to two years. Despite these hurdles, Tunisia remains committed to addressing climate change and is determined to become a leader in renewable energy adoption.
