EBRD financing in Tunisia for 120 MW of solar power plants in Tozeur and Sidi Bouzid

EBRD lends €25 million for construction of two 60 MW solar power plants

Scatec and Aeolus to develop solar power plants in Tozeur and Sidi Bouzid

Investments supporting Tunisia’s energy security and green transformation and reducing CO2 emissions

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

The EBRD financing package consists of a loan of up to €12.5 million, a concessional tranche of US$8.9 million (€8.2 million) from the Clean Technology Fund (CTF) and US$5 million (€4.6 million) from the Global Environment Facility (GEF).

For seven years, the EBRD has been a key partner in the development of the renewable energy sector in Tunisia and has supported Scatec from the very beginning of the projects.

The two photovoltaic power plants, each with an installed capacity of 60 MW, will be developed by Scatec, a leading renewable energy supplier, and Aeolus, part of Japanese conglomerate Toyota Tsusho Group. The projects are eligible for the Joint Credit Mechanism (JCM) model project financing program implemented by the Japanese Ministry of Environment in cooperation with Tunisia and will provide affordable green electricity.

The projects represent a significant milestone for the country in fulfilling its commitment to increase electricity generation from renewable sources while reducing its dependence 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 Sustainable Infrastructure Group at the EBRD, said: “We are proud to partner with Scatec and Aeolus-Toyota Tsusho Group on their first utility-scale solar projects in Tunisia. Co-financed by our long-standing partners Proparco, the Clean Technology Fund and the Global Environment Facility, these projects are evidence of the sponsors’ commitment to supporting the development of the renewable energy sector in Tunisia.”

Terje Pilskog, CEO of Scatec, said: “We are excited to have achieved financial close on the Tunisian projects and look forward to starting the construction phase. We would like to welcome our new partner, Aeolus-Toyota Tsusho Group, to the projects and express our gratitude to the EBRD, Proparco and other financial partners for their invaluable commitment. We would also like to thank the governments of Tunisia and Japan for their support and for driving the green transformation in the region.”

Hideharu Toba, CEO of Aeolus, said: “We are delighted to be working with Scatec on these projects. They mark Aeolus’ first commemorative investment since our inception in March 2024. We are also grateful for the sustained efforts and support of the EBRD and Proparco over the 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 partnership with Scatec, a key player in the renewable energy sector in emerging markets, and to join forces with Aeolus-Toyota Tsusho Group, as both companies are now jointly involved in the solar projects in Sidi Bouzid and Tozeur, which we have supported from the very beginning.”

Scatec is a leading Norwegian renewable energy producer. It develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. It currently has 4.6 GW in operation and under construction on four continents.

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

Since 2012, the EBRD has invested over €2.3 billion in 73 projects in Tunisia and supported some 2,000 local small and medium-sized enterprises through EU-funded technical assistance.