The European Bank for Reconstruction and Development (EBRD) is evaluating a loan of up to €19 million for the development of a 100 MW solar power plant in Metbassta, Tunisia. The project is a key component of Tunisia’s renewable energy strategy, aimed at addressing national energy deficits and reducing the country’s reliance on imported fuel.
Private Sector Involvement in the Tunisian Solar Project
The proposed solar plant will be developed by a special purpose vehicle (SPV) that is 60% owned by Scatec ASA — a Norwegian renewable energy company — and 40% owned by its Tunisian partner, Tozzi Green Tunisia, a subsidiary of the Italian company Tozzi Green S.p.A. Understanding the plant cost breakdown is crucial for such large-scale international collaborations.
This project is set to be the first privately-owned solar power plant to operate under a 20-year power purchase agreement (PPA) with the Tunisian Electricity and Gas Company (STEG). The PPA was signed in 2020 as part of Tunisia’s second round of solar energy tenders. This followed a successful first tender phase that awarded 500 MW of capacity to private developers, signaling a strong commitment to public-private partnerships.
The EBRD has been actively supporting Tunisia’s transition to a low-carbon economy since 2012, providing over €1.5 billion in financing for various projects. The bank’s involvement in the country’s solar sector is extensive, including a 60 MW plant in Tozeur, a 100 MW plant in Tataouine, and a 10-megawatt solar power station in Romust. Further demonstrating this commitment, the EBRD is also considering a similar €19 million loan for another 100 MW solar project by developer Qair in Gafsa, underscoring the growing investor confidence in Tunisia’s renewable energy market.
Tunisia’s Solar Energy Expansion for the Tunisian Solar Project
Tunisia’s government has prioritized renewable energy as a key driver of economic growth and energy security. The country has set an ambitious target to increase its renewable energy share to 30% of the electricity mix by 2030, a significant leap from the current 3%. Solar energy is central to this vision, with plans to install 1.5 GW of solar capacity by 2025. This push is part of a larger trend, with the government recently awarding contracts for 1700 MW worth of solar projects set for completion between 2025 and 2026.
The 100 MW solar power plant in Metbassta aligns with Tunisia’s broader strategy to diversify its energy sources and reduce its dependence on fossil fuels. The solar plant is expected to generate around 200 GWh of electricity annually, enough to power approximately 50,000 households. For those interested in the technology behind this, understanding the basics of solar panel manufacturing provides valuable context. Furthermore, the project will help reduce Tunisia’s greenhouse gas emissions by an estimated 100,000 tonnes of CO2 per year.
Impact on Tunisia’s Energy Sector from the Tunisian Solar Project
The solar plant is poised to have a significant positive impact on Tunisia’s energy sector, which has faced growing challenges in recent years. The nation has been struggling to meet a rising electricity demand that has been growing at an average rate of 5% annually. Compounding this issue, Tunisia’s domestic gas production has been declining, leading to an increased and costly reliance on imports.
The Metbassta solar plant will contribute directly to reducing Tunisia’s energy deficit by providing a stable and reliable source of clean electricity. The project is also a source of economic opportunity, expected to create around 300 jobs during the construction phase and 20 permanent jobs during operation. The complete solar panel manufacturing process from raw materials to finished modules underpins this job creation. The solar plant will also help reduce Tunisia’s energy import bill, which has been putting pressure on the country’s balance of payments.
The EBRD’s proposed loan is part of a broader international effort to support Tunisia’s energy transition. Other institutions are also playing a vital role, with the World Bank financing several Tunisia solar power plants. This collective support from the government and private sector is creating a favorable environment for renewable energy investments, which you can read more about in this market insights report.
The Metbassta solar plant is expected to be completed by the end of 2025 and will be one of the largest solar projects in Tunisia. It stands as a testament to the series of solar and wind projects the Tunisian government has launched to diversify the country’s energy mix and build a more sustainable future.
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