EBRD finances Tunisia’s first utility-scale battery storage

• EBRD provides €30 million sovereign-guaranteed loan to Tunisia’s national electricity and gas utility, STEG
• €20 million concessional loan from the CIF’s Clean Technology Fund, under the Global Energy Storage Program
• New 50 MW solar plant with 10 MW/20 MWh battery storage

The European Bank for Reconstruction and Development (EBRD) has signed a €50 million financing package with Société Tunisienne de l'Electricité et du Gaz (STEG) to finance a new solar power plant integrated with Tunisia’s first utility-scale battery energy storage system.

The package consists of a €30 million EBRD sovereign-guaranteed loan to STEG, complemented by a €20 million concessional loan from the Climate Investment Funds’ (CIF) Clean Technology Fund (CTF). Under the Global Energy Storage Program, the CTF’s concessional financing makes the investment more affordable, and supports the deployment of battery storage technology in Tunisia.

Located in Beni Mhira in the southern governorate of Tataouine, the project will comprise a 50 MWac solar photovoltaic plant integrated with a 10 MW/20 MWh battery energy storage system. It will also include a 1.2 km high-voltage transmission line connecting the facility to the national grid.

Integrating solar generation with battery storage will increase the flexibility of Tunisia’s power system as more renewable capacity comes online. As the country’s first utility-scale battery storage project, the investment, supported by EBRD technical cooperation, will also help STEG to develop the technical and operational capabilities needed to integrate storage into the national grid.

Aida Sitdikova, Director of Sustainable Infrastructure, Middle East and Africa, said: “Tunisia has outstanding solar potential, and storage will help the country to make greater use of it. This first utility-scale battery is an important milestone for Tunisia's energy security and its energy transition. Beyond the asset itself, it will help build the experience and frameworks needed for further storage projects, including private-sector investments.”

Faycel Tarifa, Chief Executive Officer of STEG said: “This project marks a new chapter for STEG and for Tunisia’s power system. As our grid takes on more renewable energy, the ability to store and dispatch it becomes essential to keep supply secure and reliable. With Tunisia’s first utility-scale battery, STEG will build the know-how to operate storage at scale and integrate it into the national grid. We thank the EBRD and the Clean Technology Fund for their continued trust and support in this important step.”

The project is part of STEG’s wider programme to develop 380 MWac of solar generation capacity and 100 MWh of battery storage, and is aligned with Tunisia’s efforts to diversify its energy mix and reduce its dependence on imported fossil fuels. It builds on the EBRD’s longstanding support for Tunisia’s power sector, including grid reinforcement, the first large-scale private renewable energy projects and the ELMED electricity interconnector between Tunisia and Italy.

The EBRD is one of Tunisia’s leading institutional investors. Since the start of its operations in the country in 2012, the Bank has invested more than €3.3 billion in over 100 projects there.