The Tunisian government is strengthening its investments in renewable energy with a new project in Tataouine, southern Tunisia. A 50 million euro loan from the European Bank for Reconstruction and Development (EBRD) will fund the construction of a 50-megawatt (MW) photovoltaic power plant equipped with a battery storage system. The agreements for financing and guarantees were signed on November 11, 2026, by Minister of Economy and Planning Samir Abdelhafidh, EBRD Tunisia head George Akhalkatsi, and Société nationale d'électricité et de gaz (STEG) general director Fayçal Trifa.
The financing package consists of a 30 million euro loan from the EBRD and a 20 million euro loan from the Clean Technology Fund (CTF), along with a 4 million euro grant for technical assistance. The power plant will have an installed capacity of 50 MW and will be coupled with a storage system with a power of 10 MW and a capacity of 20 megawatt-hours (MWh). This system will enable the storage of electricity produced during peak sunshine hours for later use.
According to the EBRD, this is the first Tunisian investment in battery energy storage, a strategic technology to compensate for the intermittency of photovoltaic production and strengthen the national grid stability. The bank estimates that the installation will reduce greenhouse gas emissions by around 50,100 tons of CO2 equivalent per year. The project, approved by the EBRD on July 22, 2026, also includes high-voltage infrastructure necessary for connection to the national grid.
The Société nationale d'électricité et de gaz (STEG) has already launched an international tender for the realization of the installation, with a deadline for bids set for December 10, 2026. This new power plant is part of Tunisia's energy strategy, which aims to increase the share of electricity produced from renewable sources to 35% by 2030.
In addition to this project, the government has initiated studies for a second 200 MW photovoltaic power plant with a 100 MW storage system, also in the Tataouine governorate. The EBRD's investment in Tunisia's renewable energy sector is part of its broader efforts to support the country's transition to a more sustainable and environmentally friendly energy mix.
The loan agreement demonstrates the international community's confidence in Tunisia's renewable energy ambitions. The country's commitment to reducing greenhouse gas emissions and increasing the share of renewable energy in its energy mix is reflected in this project. The EBRD's support will help Tunisia achieve its energy goals and improve the stability of its national grid.
The project is expected to have a positive impact on the local economy and environment. The construction of the power plant and storage system will create jobs and stimulate economic growth in the Tataouine region. Moreover, the reduction in greenhouse gas emissions will contribute to a cleaner environment and improved public health.
Key points
- The EBRD loan will fund a 50MW solar plant with 10MW battery storage in Tataouine.
- The project aims to reduce greenhouse gas emissions by 50,100 tons of CO2 equivalent per year.
- Tunisia targets 35% of electricity from renewable sources by 2030.
