In a groundbreaking partnership, the African Development Bank (AfDB) and the Sustainable Energy Fund for Africa (SEFA), along with the International Finance Corporation (IFC) and UAE’s AMEA Power, have announced the launch of Tunisia’s first privately-financed solar project.
This initiative, signed into action on Tuesday, September 26th, at the government headquarters in Al Qasba, Tunis, is poised to reshape the nation’s energy landscape by reducing power generation costs, slashing greenhouse gas emissions by more than 90,000 tons annually, and propelling Tunisia’s green transition.
The USD 86 million project, boasting a capacity of 100 megawatts, is situated in Tunisia’s Kairouan governorate and will receive up to USD 26 million in debt financing from the African Development Bank, including USD 13 million sourced from SEFA, a multi-donor fund dedicated to unlocking private sector investments in renewable energy and energy efficiency.
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The plant will be strategically located approximately 150 kilometers south of Tunis, in El Metbassta and holds a central position in Tunisia’s strategy to decrease its dependence on natural gas, aiming to increase its renewable energy share to an ambitious 35% by 2030.
Hela Cheikhrouhou, IFC’s Regional Vice President for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan, underscored the broader impact of this venture, stating, “This project represents a positive stride towards Tunisia’s green transition. South-South investments such as this one underscore the essential role that private sector partners can play in the energy transition. This project is in line with our strategy to enable South-South investments, including from Gulf Cooperation Council countries to emerging markets.”
Sérgio Pimenta, IFC’s Vice President for Africa, added, “This ambitious, renewable energy project will not only bring more affordable, clean energy to the people of Tunisia, but it will help Tunisia achieve its energy goals and attract more private investments into future green projects. Through the project, we’re proud to build on our partnership with AMEA Power to expand their operations across North Africa, helping address the effects of climate change in the region.”
Reflecting on this historic agreement, Dr. Kevin Kariuki, Vice President of Power, Energy, Climate, and Green Growth at the African Development Bank, stated, “We are thrilled to achieve this pivotal moment as we sign the first solar IPP project in Tunisia. This achievement results from AfDB’s unwavering commitment to fostering sustainable energy solutions on the continent. Today’s success is the result of a strong partnership between the Government of Tunisia, AMEA Power, the Bank, SEFA, and the IFC. It embodies our joint commitment to help move the country close to its 35% clean energy target.”
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AMEA Power’s Chairman, Hussain Al Nowais, expressed delight at reaching financial close on this 120MW solar power plant in Tunisia, the company’s first project in the country. He noted, “This is a significant milestone for AMEA Power and for Tunisia, as it represents the largest solar project fully developed in the country to date. Despite all the challenges that the market has been experiencing since the COVID pandemic, we are proud that we are delivering this project and honoring our commitment to supporting Tunisia’s transition to clean energy. We are grateful for the strong support of our lenders and the Tunisian government in making this project a reality.”
This project comes at a time when investment in green technology is increasing due to the challenges posed by climate change. In this year alone, Africa faces a USD 213.4 billion climate financing gap.
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