The European Bank for Reconstruction and Development (EBRD) announced that it is collaborating with Proparco, a French development agency, to promote Tunisia’s green transition.
To advance the transition, EBRD and Proparco intend to advance the transition by financially backing the construction and operation of two solar photovoltaic power plants in the areas of Tozeur and Sidi Bouzid.
The EBRD’s financing package includes a loan of up to €12.5 million. In addition, The Clean Technology Fund (CTF) has provided a concessional tranche of $8.9 million (€8.2 million), and the Global Environment Facility (GEF) has contributed $ 5 million (€4.6 million).
Scatec, a prominent renewable energy provider, and Aeolus, a division of the Japanese conglomerate Toyota Tsusho Group, are set to construct the two solar photovoltaic power plants, each generating 60 megawatts (MW) of power.
In addition, these projects, in collaboration with Tunisia, are eligible for funding under Japan’s Ministry of the Environment’s Joint Crediting Mechanism (JCM) model and are expected to supply affordable eco-friendly electricity.
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.”
She added, “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.”
The initiatives represent an important achievement for the nation in fulfilling its commitment to increase the production of renewable energy electricity and decrease its dependence on fossil fuels.
The two PV plants, once operational are anticipated to lower annual CO2 emissions by as much as 108,000 tonnes.