EU Invests €35.8 Million to Boost Tunisia's Clean Energy Transition

The European Union (EU) is intensifying its support for Tunisia’s energy transition with €35.8 million in grant financing through the Neighbourhood Investment Platform (NIP) to accelerate renewable energy generation and electricity infrastructure development. Contribution agreements of €20.4 million with the European Bank for Reconstruction and Development (EBRD) and €15.4 million with the European Investment Bank (EIB Global) aim to improve the bankability of large-scale renewable energy projects while supporting investments in grid connections and transmission infrastructure, unlocking further public and private financing. The initiative is also reinforced by EFSD+ guarantees from the EU. The first projects under this framework include a 100 MW solar photovoltaic (PV) power plant in Sidi Bouzid, developed by Scatec and Aeolus, and a 300 MW solar PV portfolio in Gafsa led by Qair, totaling 400 MW of installed capacity. These projects are expected to attract additional private sector participation and international co-financing, advancing Tunisia’s renewable energy programme and contributing to the country’s target of generating 35% of electricity from renewable sources by 2035. EU and EIB officials emphasized the strategic importance of combining grant support with financing to mobilize large-scale investments in solar energy and grid infrastructure. This partnership aims to accelerate Tunisia’s energy transition, strengthen energy security, and support the broader Global Gateway initiative, which promotes sustainable, secure, and inclusive energy systems in partner countries. The projects are aligned with Tunisia’s national energy strategy and are expected to deliver concrete benefits for citizens while enhancing climate resilience and sustainable growth. The EU grants, financed through NIP, will de-risk strategic investments and mobilize both public and private co-investment. These efforts form part of the Global Gateway Africa–Europe Investment Package, reflecting a coordinated Team Europe approach that combines EU institutions and partner development banks to support long-term sustainable infrastructure projects. Tunisia is a key partner for the EU, which is its largest investor and trading partner, with European companies creating over 400,000 jobs in the country. This cooperation spans energy, trade, mobility, education, rural development, and women’s empowerment. Since signing the Strategic and Comprehensive Partnership MoU in 2023, the EU has mobilized over €600 million in grants for investments estimated at €5 billion across Tunisia. The initiative also highlights the roles of EBRD and EIB Global in advancing renewable energy and sustainable infrastructure. EBRD promotes private sector development and green investment across its regions, while EIB Global serves as the EU’s arm for international partnerships and development finance, aiming to support €100 billion of investment by 2027. The broader Global Gateway initiative seeks to mobilize up to €300 billion in investments worldwide, with a transformational focus on energy, digital, transport, health, and education sectors.