The African Development Bank (AfDB) has announced the launch of Tunisia‘s first privately financed solar project.

Development Diaries reports that AfDB, Sustainable Energy Fund for Africa (SEFA), International Finance Corporation and AMEA Power are joint partners for the project.

The project, according to the bank, is aimed at revolutionising the country’s energy scene by cutting power generation costs, significantly trimming greenhouse gas emissions by over 90,000 tons annually, and bolstering green transition.

A 2022 overview by the International Trade Administration (ITA) showed that only three percent of Tunisia’s electricity was generated from renewables in 2021, including hydroelectric, solar, and wind energy.

To cover its basic energy requirements, Tunisia mostly imports gas. In 2016, gas accounted for nearly 97 percent of the country’s electrical production, according to figures from International Energy Agency.

According to figures from the country’s Ministry of Energy and Mines, Tunisia’s power production decreased by three percent in 2022, with natural gas making up 95 percent of the total and wind contributing 2 percent.

In a statement, AfDB said the 100-megawatt solar plant located in Tunisia’s Kairouan governorate will benefit from up to U.S. $26 million in debt financing from AfDB, including U.S.$13 million sourced from SEFA.

The financing scheme, it is understood, is designed to ensure the holistic development, financing, operation, and maintenance of the plant, located roughly 150 km south of Tunis, in El Metbassta.

The plant is central to Tunisia’s strategy to reduce its reliance on natural gas. It aims to bolster the country’s renewable energy share to an ambitious 35 percent by 2030, the bank added.

Photo source: AfDB