AMEA Power has initiated a solar power project in Tunisia, with the groundbreaking ceremony for the 120MWp Kairouan Solar Photovoltaic project recently held. This venture, supported by the IFC and AfDB, is in line with Tunisia's 2035 energy strategy.
The Solar Project Costs $86 million
Image: Collected
AMEA Power secured $86 million in financing in September 2023 through the International Finance Corporation (IFC) and the African Development Bank (AfDB) for its Kairouan Solar PV project. The project is scheduled for commissioning in the fourth quarter of 2025. It will be carried out by Kairouan Solar Plant — a Tunisian project company wholly owned by AMEA Power — under a Build-Own-Operate (BOO) model.
The $86 million investment aims to produce 222GWh of renewable energy annually, supplying over 43,000 households and cutting carbon emissions by 117,000 tonnes throughout its lifespan. The project was initially awarded through an international tender program led by Tunisia’s Ministry of Industry and SMEs. It has since attracted considerable attention, as reported by Oil & Gas Middle East.
Hussain Al Nowais, the chairman of AMEA Power, highlighted Tunisia's potential to emerge as a key hub for green energy and trade by harnessing its renewable resources and strategic positioning between North Africa and Europe. He emphasized that the groundbreaking project sets a precedent for forthcoming renewable energy initiatives in the nation, thereby aligning with the government's target of integrating 35% renewable energy into its energy portfolio by 2030.
“As we formally announce the groundbreaking for the nation's first privately-financed solar project, AMEA Power is reaching a major milestone that will help Tunisia become a greener country. Tunisia has the potential to become a leading hub for green energy and trade by using its renewable energy resources and advantageous location between North Africa and Europe. The government's aim of having 35% renewable energy in its energy mix by 2030 is supported by this ground-breaking project, which serves as a model for other renewable energy initiatives in the nation,” Al Nowais stated.
Tunisia Inaugural Photovoltaic Solar Power Facility
Earlier this year, Wael Chouchane, Tunisia’s Secretary of State for Energy Transition, inaugurated the country's inaugural photovoltaic solar power facility in Djerba, situated in the southeast. This 1 MW plant — situated in the Ajim area — is anticipated to supply electricity to 500 households, contributing to the decrease in carbon emissions.
Constructed with an investment of 3 million dinars, the facility spans 1.5 hectares and consists of around 2,000 solar panels — each with a capacity of 510 watts. Furthermore, in June 2021, a concession agreement and a 20-year power purchase agreement were formalized with the Société Tunisienne de l’Electricité et du Gaz (STEG), backed by the Tunisian government in May 2022.
Solar Business Investment in Tunisia
Tunisia — with its rich history and a commitment to sustainable energy — is poised for significant strides in solar power development in 2024. Despite recent progress, the nation's solar capacity remains below its potential, with installed capacity exceeding 200 MW in 2023. However, Tunisia boasts abundant solar resources and a government dedicated to renewable energy, evidenced by supportive policies and incentives, setting the stage for substantial market growth and reduced reliance on imported fossil fuels.
The expansion of Tunisia's solar energy sector not only promises environmental benefits but also presents a pathway to economic development. Job creation opportunities abound across various sectors, including manufacturing, installation, and research, fostering economic growth and stability. Nonetheless, challenges such as high initial costs, grid infrastructure limitations, and regulatory complexities loom large, demanding strategic solutions to ensure sustainable expansion and investor confidence.
Despite these obstacles, Tunisia has the potential to emerge as a regional leader in solar energy. By continuing its commitment to renewable energy, attracting investments, and prioritizing workforce development, Tunisia can unlock the full potential of solar power, contributing to a cleaner and more sustainable future. The journey ahead may be challenging, but the promise of a brighter and greener future makes the pursuit of sustainable energy solutions imperative for Tunisia's continued prosperity and environmental well-being.