EU Signs New Contribution Agreements with EBRD (€20 million) and EIB Global (€15 million) to Support Solar Photovoltaic Projects and Electric Grid Infrastructure
The European Union's Team Europe is taking coordinated action to help Tunisia reach 35% of renewable electricity by 2030 and supply the ELMED interconnection with renewable energy.
The initial investments include 400 MW of solar capacity split between Sidi Bouzid and Gafsa.
The European Union (EU) is strengthening its support for Tunisia's energy transition with €35.8 million in grants under the Neighbourhood Investment Platform (NIP), to accelerate the development of renewable energy production and electric infrastructure in the country. The EU has signed a €20.4 million contribution agreement with the European Bank for Reconstruction and Development (EBRD) and a €15.4 million contribution agreement with the European Investment Bank (EIB Global). These grants will improve the bankability of large-scale renewable energy projects and support investments in grid connections and electricity transmission infrastructure, thereby mobilizing additional public and private financing. The project also benefits from the EU's EFSD+ guarantees.
The first projects supported under this framework include a 100 MW solar photovoltaic plant in Sidi Bouzid, developed by Scatec and Aeolus, and a 300 MW solar photovoltaic portfolio in Gafsa, carried by Qair. Together, these initial investments represent a total installed capacity of 400 MW and are expected to encourage increased private sector participation and international co-financing.
"Tunisia is a key partner for EIB Global, and this €15 million European grant is a crucial step in turning priority renewable energy projects into bankable investments," said Ioannis Tsakiris, Vice-President of the European Investment Bank. "It clearly demonstrates how EU financial support, combined with EIB Global financing, can mobilize large-scale investments in solar energy and the necessary grid infrastructure, thereby accelerating Tunisia's energy transition and strengthening the impact of the Global Gateway initiative."
Giuseppe Perrone, EU Ambassador to Tunisia, stated: "In perfect alignment with Tunisia's national energy strategy, the European Union is investing in renewable energies and modern infrastructure to accelerate the country's energy autonomy, stimulate sustainable growth, and enhance its climate resilience. These efforts translate into concrete improvements for citizens and contribute to broader stability in the Mediterranean."
Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, said: "We are proud to collaborate with the EU and EIB to accelerate Tunisia's ecological transition. By combining EU grants and financing, we can mobilize massive investments in renewable energies and grid infrastructure. These projects will help harness Tunisia's abundant energy resources to provide safe, local, and affordable electricity."
These agreements directly contribute to Tunisia's 1.7 GW renewable energy program and its goal of producing 35% of its electricity from renewable sources by 2035, as defined in the EU-Tunisia energy cooperation agreement.
The EU grants, funded by the Neighbourhood Investment Platform, will help reduce the risks associated with strategic investments and mobilize public and private co-investments. They are part of the Africa-Europe Investment Package of Global Gateway and reflect the EU's commitment, through a Team Europe approach, to supporting sustainable, secure, and inclusive energy systems in partner countries.
