The European Bank for Reconstruction and Development (EBRD) has agreed a €50 million financing package with Tunisia’s state-owned utility Société Tunisienne de l’Electricité et du Gaz (STEG) for a 50 MW solar project integrated with the country’s first utility-scale battery energy storage system.
The project, located at Beni Mhira in the southern governorate of Tataouine, will combine a 50 MWac photovoltaic plant with a 10 MW/20 MWh battery system. A 1.2 km high-voltage transmission line will connect the facility to the national grid.
The financing comprises a €30 million EBRD loan to STEG, backed by a sovereign guarantee, and a €20 million concessional loan from the Climate Investment Funds’ Clean Technology Fund (CTF). The CTF contribution is provided through its Global Energy Storage Program.
The battery is intended to improve the flexibility of Tunisia’s electricity system as more renewable generation is connected. The project will also provide STEG with experience in operating grid-scale storage and integrating it into the national network.
“This first utility-scale battery is an important milestone for Tunisia’s energy security and its energy transition,” said Aida Sitdikova, EBRD director of sustainable infrastructure for the Middle East and Africa. She said the project would help establish the experience and frameworks needed for further storage developments, including private-sector investment.
The scheme forms part of STEG’s wider programme to develop 380 MWac of solar capacity and 100 MWh of battery storage. It supports Tunisia’s efforts to diversify its energy mix and reduce reliance on imported fossil fuels.
The EBRD said it has invested more than €3.3 billion in over 100 projects in Tunisia since beginning operations in the country in 2012.
