French renewable energy company Qair is seeking €54 million (USD 62.9 million) in financing from the European Bank for Reconstruction and Development (EBRD) to support the development of two large-scale solar power projects in Tunisia with a combined capacity of 298 megawatts (MW).
The proposed financing includes two separate senior debt facilities of €19 million and €35 million, earmarked for the construction and operation of:
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A 100 MW solar plant in Gafsa Governorate, with a total estimated cost of €84 million
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A 198 MW facility in Sidi Bouzid Governorate, still in early financing stages
In addition to the loans, the EBRD has mobilised grants of up to €3 million and €4 million, respectively, from the EU Neighbourhood Investment Platform (EU NIP) to help fund the associated transmission infrastructure.
Risk Mitigation and Support
The projects will also benefit from a first-loss risk guarantee provided by the European Fund for Sustainable Development Plus (EFSD+) under the Hi-Bar guarantee programme, aimed at de-risking investment in frontier markets.
Long-Term Power Purchase Agreements
Both solar projects are backed by 25-year power purchase agreements (PPAs) with Tunisia’s state utility, Société Tunisienne de l’Électricité et du Gaz (STEG). These projects were selected under Tunisia’s 1.7 GW renewable energy programme tendered in 2024, within the Concession Regime framework.
Timeline and Next Steps
A decision on the Gafsa project financing is expected by November 11, according to the EBRD. The Sidi Bouzid project remains at an earlier documentation stage, and details may be adjusted as preparations progress.
If completed, the projects will significantly boost Tunisia’s solar capacity and support the country’s transition toward cleaner energy sources.
