A New Phase of Investing in Energy
Tunisia is rapidly emerging as a leader of renewable energy in North Africa, thanks to a combination of recent collaborations with the public and private sectors and increased offers of international funding. In aiming to have even 35% of its energy come from renewables by 2030, Tunisia is receiving enlistment of significant investments on solar energy, green hydrogen, and cross-border energy projects. green hydrogen, and cross-border energy projects.
Major Solar Projects in Development
The Kairouan Solar Power Station is an important step towards renewable energy, and the UAE investment company, AMEA Power, is establishing a world class 120 MW photovoltaic power station with a preliminary budget of $86 million. It involves main backers, the African Development Bank (AfDB), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), which is providing US $23.5 million for political risk. Once operational, the solar power station will supply renewable energy into Tunisia’s national grid via a 20-year contract with the state utility, STEG.
Additionally, the European Bank for Reconstruction and Development (EBRD) is supporting the development of two 60mW solar power plants in Tozeur and Sidi Bouzid. Led by Scatec and Aeolus – a subsidiary of Toyota Tsusho – those projects are expected to reduce carbon emissions by a remarkable 108,000 tons every year.
Green Hydrogen and International Energy Exchange
Tunisia appears to be on the way to becoming the premier location for Green Hydrogen. The “H2 Notos” initiative, the vision made possible by TotalEnergies’ TE H2 and Austria’s VERBUND, intentionally plans to produce an astounding 200,000 tons per year of Hydrogen from solar, wind, and desalinated seawater. Through the SoutH2 Corridor pipeline, this clean hydrogen will be transported to Europe. The ELMED interconnection project will enhance energy exports to Italy, making the link between the electricity grids of Tunisia with an investment of 840 million euros through an underwater cable of 600 MW. The project is being implemented in partnership with all the international financing institutions, including the World Bank, EIB, EBRD and KfW, and it is vital to Tunisia’s ambition to become a regional energy exporter.
A Unique Way to Sustainable Development
Tunisia’s renewable energy endeavors demonstrate the outstanding possibilities of international collaboration combined with inventive funding. By developing partnerships between public and private actors and supporting international climate objectives, the country is enhancing its energy integrity and establishing new economic opportunities, all while reducing its environmental impact. With these projects in progress, Tunisia has the potential to help spark the global movement toward sustainable energy.
