Société Tunisienne de l’Electricité et du Gaz (STEG) is planning to secure a loan of EUR 40 million from the European Bank for Reconstruction and Development (EBRD) to support a new solar and battery storage project in Tunisia. The funding will be used to develop a photovoltaic power plant along with a battery energy storage system (BESS) in the El-Medina region of the Gabes governorate.
The proposed solar park will have a capacity of 50 MWp. Along with this, a battery storage system will be installed to help manage the variability of solar power generation. Solar energy production changes depending on sunlight availability during the day. With the help of battery storage, excess electricity generated during peak sunlight hours can be stored and then supplied to the grid when demand increases or when solar generation drops. This will help ensure a more stable and reliable supply of clean electricity to Tunisia’s national grid.
The total estimated cost of the project is around EUR 82 million. If approved, the EBRD loan will cover nearly half of the total investment. The remaining amount is expected to be financed through other international lenders and STEG’s own financial resources. This partnership reflects the growing role of international climate finance in supporting renewable energy development in North African countries.
Tunisia is working to reduce its dependence on fossil fuels and diversify its energy mix. At present, a large share of the country’s electricity is generated using imported natural gas. This makes Tunisia vulnerable to global fuel price changes and supply risks. By increasing the use of renewable energy sources such as solar power, the country aims to improve energy security and lower carbon emissions.
The El-Medina solar and storage project is aligned with Tunisia’s National Climate and Energy Strategy. The country has set a target to generate 35 percent of its electricity from renewable sources by 2030. Projects like this are considered important steps toward achieving that goal.
The EBRD is currently reviewing the environmental and social aspects of the project to ensure it meets international standards. If the loan is approved, it will also include technical support to help STEG improve its operational performance and manage higher levels of renewable energy integration. The project represents a key move toward modernizing Tunisia’s power sector and building a more sustainable energy future.
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