EBRD promotes renewable energy in Tunisia

This article is brought to you in association with EBRD.

• EBRD lends €25 million for the construction of two 60 MW solar power plants
• Scatec and Aeolus to develop the solar plants in Tozeur and Sidi Bouzid
• Investment to support Tunisia’s energy security and green transition and cut CO2 emissions

The European Bank for Reconstruction and Development (EBRD) and the French development agency, Proparco, are promoting the green transition of Tunisia by financing the construction and operation of two solar photovoltaic power plants in the areas of Tozeur and Sidi Bouzid.

The EBRD’s financing package consists of a loan of up to €12.5 million, a concessional tranche of US$ 8.9 million (€8.2 million) extended by the Clean Technology Fund (CTF) and US$ 5.0 million (€4.6 million) provided by the Global Environment Facility (GEF).

The EBRD has been a key partner in the development of Tunisia’s renewable sector over the past seven years and has been supporting Scatec since the inception of these projects.

The two solar photovoltaic power plants, each with an installed capacity of 60 MW, will be developed by Scatec, a leading renewable energy provider, and Aeolus, part of Japanese conglomerate Toyota Tsusho Group. The projects qualify for the financing programme for Joint Crediting Mechanism (JCM) model projects implemented by Japan’s Ministry of the Environment in cooperation with Tunisia and will provide low-cost green electricity.

The projects mark a significant milestone for the country in meeting its pledge to scale up renewable energy electricity production while reducing its reliance on fossil fuels. Once operational, they are expected to reduce annual CO2 emissions by up to 108,000 tonnes.

Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, said: “We are proud to partner with Scatec and Aeolus-Toyota Tsusho Group on their first utility-scale solar projects in Tunisia. These projects, co-financed with our long-standing partners Proparco, the Clean Technology Fund and the Global Environment Facility, are testament to the sponsors’ commitment to supporting the development of Tunisia’s renewable energy sector.”

Terje Pilskog, CEO of Scatec, said: “We are excited to have reached financial close on the Tunisian projects and are looking forward to embarking on the construction phase. We would like to welcome our new partner, Aeolus-Toyota Tsusho Group, to the projects and express our appreciation to the EBRD, Proparco and other financing partners for their invaluable commitment. We would further like to thank the Governments of Tunisia and Japan for their support and for driving the green transition in the region.”

Hideharu Toba, President of Aeolus, said: “We are delighted to have partnered with Scatec on these projects. They mark Aeolus’s first commemorative investment since our establishment in March 2024. We are also grateful for the persistent efforts and support of the EBRD and Proparco for many years, as well as the advisors and everyone involved in bringing these projects to fruition.”

Françoise Lombard, CEO of Proparco, said: “We are very proud to strengthen our long-term relationship with Scatec, a key player in the renewable energy sector across emerging markets, and to join forces with Aeolus-Toyota Tsusho Group, as both are now jointly engaged in the Sidi Bouzid and Tozeur solar projects, which we have supported from their inception.”

Scatec is a leading Norwegian renewable power producer. It develops, builds, owns and operates solar, wind and hydropower plants and storage solutions. Currently, it has 4.6 GW in operation and under construction across four continents.

Toyota Tsusho Corporation is a leading Japanese multinational trading and investment company, and the trading arm of the Toyota Motor Corporation. In March 2024, it established Aeolus, a joint venture to promote renewable energy business in Africa. Aeolus is owned by Toyota Tsusho’s wholly owned subsidiaries, CFAO and Eurus Energy Holdings Corporation.

Since 2012, the EBRD has invested more than €2.3 billion in 73 projects in Tunisia and provided support to around 2,000 small and medium-sized local enterprises through European Union-funded technical assistance.