The European Union (EU) is strengthening its support for Tunisia’s energy transition with €35.8 million in grant financing provided under the Neighbourhood Investment Platform (NIP), to accelerate the development of renewable energy generation and electricity infrastructure in the country.

The EU has signed a €20.4 million contribution agreement with the European Bank for Reconstruction and Development (EBRD) and a €15.4 million contribution agreement with the European Investment Bank (EIB Global). These grants will enhance the bankability of large-scale renewable energy projects and support investments in grid connections and transmission infrastructure, helping to unlock additional public and private financing. The project is also supported by EFSD+ guarantees from the EU.

The first projects supported under this framework include a 100 MW solar photovoltaic power plant in Sidi Bouzid, developed by Scatec and Aeolus, and a 300 MW solar PV portfolio in Gafsa led by Qair. Together, these initial investments represent a total installed capacity of 400 MW and are expected to mobilise further private sector participation and international co-financing.

“Tunisia is a key partner for EIB Global, and this €15 million EU contribution agreement is a decisive step towards turning priority renewable energy projects into bankable investments,” said EIB Vice-President Ioannis Tsakiris. “It clearly illustrates how EU grant support, combined with EIB Global financing, can mobilise large-scale investment in solar power and the grid infrastructure required to deliver it, accelerating Tunisia’s energy transition and strengthening the impact of the Global Gateway.”

Giuseppe Perrone, Ambassador of the European Union to Tunisia, said: “In close alignment with Tunisia’s national energy strategy, the European Union is investing in renewable energy and modern infrastructure to accelerate the country’s energy autonomy, drive sustainable growth, and reinforce climate resilience. These efforts deliver concrete improvements for citizens while contributing to wider stability across the Mediterranean.”

Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, said: “We are proud to be partnering with the EU and EIB to accelerate Tunisia’s green transition. By combining EU grant support with financing, we can unlock large-scale investment in renewable energy and grid infrastructure. These projects will help unlocking Tunisia’s abundant energy resources to deliver secure and domestic cheap power.”