EBRD’s €25 Million Loan for Construction of Two 60 MW Solar Power Plants in Tunisia

EBRD’s €25 Million Loan for Construction of Two 60 MW Solar Power Plants in Tunisia

(IN BRIEF) The EBRD and Proparco are financing two 60 MW solar power plants in Tozeur and Sidi Bouzid, Tunisia, with a €25 million loan. Developed by Scatec and Aeolus (Toyota Tsusho Group), these projects will reduce annual CO2 emissions by up to 108,000 tonnes and support Tunisia’s renewable energy goals.

Key leaders from EBRD, Scatec, Aeolus, and Proparco expressed enthusiasm for the collaboration and its impact on Tunisia’s green transition. The EBRD has invested over €2.3 billion in Tunisia since 2012.

(PRESS RELEASE) LONDON, 6-Aug-2024— /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), along with the French development agency Proparco, is advancing Tunisia’s green transition through the financing of two solar photovoltaic power plants in Tozeur and Sidi Bouzid. This initiative aims to bolster Tunisia’s energy security and reduce CO2 emissions.

The EBRD’s financial package includes a loan of up to €12.5 million, supplemented by a €8.2 million concessional tranche from the Clean Technology Fund (CTF) and €4.6 million from the Global Environment Facility (GEF).

Scatec, a prominent renewable energy provider, and Aeolus, a subsidiary of the Japanese conglomerate Toyota Tsusho Group, will develop these 60 MW capacity solar power plants. The projects qualify for Japan’s Joint Crediting Mechanism (JCM) model, providing low-cost green electricity and marking a significant milestone in Tunisia’s renewable energy production goals.

The completion of these projects is expected to reduce annual CO2 emissions by up to 108,000 tonnes, signifying a critical step towards reducing reliance on fossil fuels. The EBRD has been instrumental in supporting Tunisia’s renewable sector for the past seven years and has been a consistent partner to Scatec from the inception of these projects.

Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, expressed pride in partnering with Scatec and Aeolus-Toyota Tsusho Group on Tunisia’s first utility-scale solar projects. She emphasized the significance of co-financing with Proparco, the Clean Technology Fund, and the Global Environment Facility, highlighting the commitment to developing Tunisia’s renewable energy sector.

Scatec’s CEO, Terje Pilskog, celebrated the financial closure of the Tunisian projects and looked forward to the construction phase. He welcomed Aeolus-Toyota Tsusho Group as a new partner and acknowledged the invaluable commitment of EBRD, Proparco, and other financing partners. Pilskog also thanked the Governments of Tunisia and Japan for their support in driving the region’s green transition.

Hideharu Toba, President of Aeolus, expressed delight in partnering with Scatec and gratitude towards EBRD and Proparco for their persistent support. He noted that these projects represent Aeolus’s first significant investment since its establishment in March 2024.

Proparco’s CEO, Françoise Lombard, reiterated the importance of the long-term relationship with Scatec and the collaboration with Aeolus-Toyota Tsusho Group in the Sidi Bouzid and Tozeur solar projects, which Proparco has supported since inception.

Scatec, a Norwegian renewable power producer, currently operates 4.6 GW of solar, wind, hydropower plants, and storage solutions across four continents. Toyota Tsusho Corporation, a leading Japanese multinational trading and investment company, established Aeolus in March 2024 to promote renewable energy in Africa.

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

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SOURCE: EBRD