MIGA Increases Support For Tunisia's Energy Transition With New Guarantees To Large-Scale Renewable Energy Project

Guarantees will help diversify energy sources and boost energy security in the country.

The Multilateral Investment Guarantee Agency (MIGA), home of the World Bank Group Guarantee Platform, has issued a new guarantee to help finance construction of a large, grid-connected solar power plant in central Tunisia. This marks MIGA’s fourth solar independent power producer project in the country.

MIGA is providing a guarantee of up to €13.05M for 20 years to AEOLUS SAS (France), a joint venture between Eurus Energy Holdings Corporation (Japan) and CFAO SAS (France), both wholly owned subsidiaries of Toyota Tsusho Corporation (Japan). The guarantee supports AEOLUS’ investment in Scatec Khobna PV Power SARL to construct, own, and operate a 100-megawatt plant in Mezzouna, Sidi Bouzid.

The project comprises a photovoltaic plant and high-voltage transmission infrastructure, which includes 12 kilometers of overhead transmission lines. Electricity generated from the projects will be sold to a state-owned utility, Société Tunisienne de l’Electricité et du Gaz, under a 25-year power purchase agreement.

The project is being developed in partnership with SCATEC (Norway) and financed by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The project also benefits from support provided by the European Union, including an EFSD+ guarantee mechanism and grant.

The project supports the government of Tunisia’s efforts to enhance energy security, improve energy efficiency, and reduce reliance on imported energy through the expansion of renewable energy. Tunisia currently relies on fossil fuels for 94 percent of its domestic power generation, with ambitions to increase the share of renewables to 35 percent by 2030. The project is strategically important for Tunisia, helping the country to meet growing demand for energy sustainably.

“Tunisia is continuing to take important steps to diversify its energy sources and increase energy security,” said MIGA Managing Director Tsutomu Yamamoto. “We are excited to support the country in furthering these ambitions through the Sidi Bouzid II solar project, which will help the country increase its energy self-reliance in a sustainable, affordable manner.”

The project is also supported with reinsurance coverage from Nippon Export and Investment Insurance, the Japanese export credit agency.

Aeolus President, Hideharu Toba said "We are delighted to achieve another important milestone in Tunisia together with our trusted partner Scatec. Following the successful commissioning of the Sidi Bouzid and Tozeur solar projects earlier this year, Sidi Bouzid II solar project further demonstrates our shared commitment to supporting Tunisia's energy transition through long-term investment and partnership. We sincerely thank the Government of Tunisia, EBRD, EIB, MIGA, the Government of Japan and all stakeholders whose support has made this project possible.

"As Aeolus continues to expand its renewable energy portfolio across Africa, we remain committed to delivering sustainable infrastructure that enhances energy security, supports economic development and contributes to a low-carbon future for the continent."

The project follows an engagement in 2024, when MIGA issued a guarantee of €18.45M to AEOLUS for its investments in the Sidi Bouzid I and Tozeur solar power plants.