European Union Strengthens Support for Tunisia’s Energy Transition with €35.8 Million for Solar Power and Grid Infrastructure

European Union Strengthens Support for Tunisia’s Energy Transition with €35.8 Million for Solar Power and Grid Infrastructure

(IN BRIEF) The European Union has committed €35.8 million in grant financing through the Neighbourhood Investment Platform to support Tunisia’s energy transition, signing contribution agreements with the EBRD and EIB Global. The funding will help de-risk large-scale solar projects and strengthen electricity grid infrastructure, unlocking further public and private investment. Initial projects include 400 MW of solar capacity in Sidi Bouzid and Gafsa, supporting Tunisia’s renewable energy programme and its ambition to significantly increase the share of electricity generated from renewable sources while reinforcing EU–Tunisia energy cooperation.

(PRESS RELEASE) LUXEMBOURG, 16-Jan-2026 — /EuropaWire/ — The European Union has reinforced its support for Tunisia’s energy transition by committing €35.8 million in grant financing through the Neighbourhood Investment Platform (NIP) to accelerate renewable energy generation and strengthen electricity grid infrastructure. The funding is intended to support large-scale solar photovoltaic projects and key transmission investments, helping Tunisia advance toward its long-term renewable energy targets.

As part of this initiative, the EU has signed two new contribution agreements: €20.4 million with the European Bank for Reconstruction and Development and €15.4 million with the European Investment Bank Global. The grants are designed to improve the bankability of major renewable energy projects while supporting grid connections and transmission infrastructure, thereby unlocking additional public and private investment. The financing framework is further supported by EU-backed EFSD+ guarantees.

The first investments under this coordinated framework include a 100 MW solar photovoltaic power plant in Sidi Bouzid, developed by Scatec and Aeolus, alongside a 300 MW solar PV portfolio in Gafsa led by Qair. Together, these projects will deliver 400 MW of new solar capacity and are expected to catalyse further private sector participation and international co-financing in Tunisia’s renewable energy sector.

The initiative reflects a coordinated Team Europe approach, aligning EU institutions and financial partners to support Tunisia’s national energy strategy. By combining EU grants with EBRD and EIB Global financing, the framework aims to reduce project risk, accelerate implementation, and ensure that renewable energy investments are matched with the grid infrastructure required to deliver power reliably and efficiently.

These agreements contribute directly to Tunisia’s 1.7 GW renewable energy programme and support the country’s ambition to significantly increase the share of electricity generated from renewable sources. The investments are also aligned with the EU–Tunisia Memorandum of Understanding on energy cooperation and form part of the wider Global Gateway Africa–Europe Investment Package, which seeks to promote sustainable growth, energy security, and climate resilience across partner countries.

By supporting solar generation in regions such as Sidi Bouzid and Gafsa and strengthening electricity transmission networks, the EU aims to help Tunisia build a more resilient, autonomous, and sustainable energy system. The initiative also supports the development of renewable energy capacity that could contribute to regional interconnection projects, including the ELMED interconnector, reinforcing Tunisia’s role in the Mediterranean energy landscape.

Background information

About the EU

The EU is Tunisia’s largest investor and trading partner, with European companies already creating over 400,000 jobs in the country. Cooperation spans over trade, renewable energy, mobility and migration, education and youth opportunities, rural development and women’s empowerment – reflecting our shared commitment to prosperity, stability and opportunity for all. Since the signature of the MoU on the Strategic and Comprehensive Partnership in 2023, the EU has mobilised its financing instruments, including over EUR 600 million grants in sectors such as energy, transport, and SMEs, to support an estimated 5 billion EUR of investments.

About EBRD

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 42 economies across three continents. The Bank is owned by 77 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, X and YouTube.

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.

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About the Global Gateway

Global Gateway is the European initiative to boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world. Global Gateway aims to mobilise up to €300 billion in investments through a Team Europe approach, bringing together the EU, its Member States and their financial and development institutions. It seeks a transformational impact in the digital, climate and energy, transport, health, and education and research sectors.

Media contact:
Driss Charrier-Rachidi
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+352 4379 – 70495

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SOURCE: European Investment Bank