Tunisia Secures a €200 Million EIB Tunisia solar plant loan for Tozeur Expansion
Tunisia is taking a monumental step forward in its clean energy transition, securing a €200 million loan from the European Investment Bank (EIB) to significantly expand the Tozeur solar photovoltaic (PV) plant. This strategic investment not only scales up the country’s renewable energy capacity but also reinforces its commitment to achieving energy independence and sustainable development.
The Tozeur Expansion: Building on a Successful Tunisia solar plant loan
The newly approved funding is earmarked for the second phase of the Tozeur solar project, located in the sun-drenched landscape of southwest Tunisia. The expansion aims to add a substantial 100-150 MW of capacity, a massive increase from the initial 10 MW plant that has been operational since 2018—a first phase also financed by the EIB.
Tozeur’s location is no coincidence. With a solar irradiance level exceeding 2,200 kWh/m² per year, the region is one of the most suitable in the world for solar power generation. This project will leverage that natural advantage to its fullest potential. Once complete, the expanded facility is projected to have a total capacity of around 160 MW, generating approximately 300 GWh of clean electricity annually—enough to power over 60,000 Tunisian homes.
A Strategic Push for Energy Independence and National Goals with Tunisia solar plant loan
This project is a cornerstone of Tunisia’s 2030 energy strategy, which ambitiously targets a 35% share of renewables in the national electricity mix. For a country that currently imports around 80% of its gas needs, this shift is critical. By harnessing its own solar resources, Tunisia can bolster its energy security and significantly reduce its reliance on volatile international energy markets.
The economic implications are profound. The Tunisian Ministry of Energy estimates that the project will cut the country’s annual energy import bill by €50-70 million. Furthermore, the construction phase is expected to create over 500 jobs, providing a welcome boost to the local economy. On the environmental front, the expanded plant will prevent the emission of an estimated 150,000 tons of CO₂ each year, marking a significant contribution to global climate action.
A Collaborative Financial Framework including Tunisia solar plant loan
The deal, formalized in late 2025 with disbursements expected to begin in 2026, showcases a robust, multi-partner financial model. While the EIB is providing the cornerstone loan, covering 50-60% of the costs, the remainder will be sourced from the African Development Bank, EU grants, and private equity. The project will be developed under a build-operate-transfer (BOT) model, inviting international developers to bring their expertise to the table.
This investment aligns perfectly with the European Union’s Global Gateway initiative, which aims to support sustainable infrastructure projects in partner countries. It demonstrates a shared commitment between Tunisia and the EU to foster green growth and energy resilience in the North African region.
Challenges and the Path Forward for the Tunisia solar plant loan
While the outlook is overwhelmingly positive, the project is not without its challenges. Integrating this new, large-scale capacity into Tunisia’s aging grid infrastructure may present delays and require further investment in modernization.
However, this ambitious undertaking is a clear signal of Tunisia’s forward-thinking reforms designed to attract foreign direct investment into its renewables sector. With similar deals materializing for projects in Gabès and Kairouan, Tunisia is firmly positioning itself as a leader in North Africa’s solar energy landscape. With a pipeline of projects aiming for over 1 GW by 2030, the Tozeur expansion is not just a single project—it’s a powerful catalyst for a brighter, cleaner, and more self-sufficient energy future.
For the latest developments on this and other renewable energy initiatives, interested parties can follow updates from the European Investment Bank (EIB) and Tunisia’s state electricity and gas utility, STEG.
