Photovoltaic plant with Battery Storage - STEG

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a senior loan of up to EUR 40 million to Societe Tunisienne de L'Electricite et du Gaz (STEG), to finance the construction and development of a 50-MWac photovoltaic solar power plant, with a 20-MWh Battery Energy Storage System (BESS), and associated high-voltage transmission infrastructure to integrate the project into the Tunisian electricity grid at Beni M'Hira, in the Tataouine Governorate, south Tunisia. The project also benefits from a senior loan of up to EUR 20 million from the Clean Technology Fund (CTF).

Project ID 56916

Status Exploratory

Location

Tunisia

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Wajdi Ben Khaled
wbenkhaled@steg.com.tn
+21627633222
www.steg.com.tn
38 Rue Kamel Atatürk, 1080 Tunis, Tunisia

Project ID 56916

Status Exploratory

Location

Tunisia

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

17 Jun 2026

Disclosure date

25 Feb 2026

Project Description

Project Objectives

The project's BESS workstream will be the first investment in a BESS within Tunisia, and will help unlock Tunisia's renewable energy potential by addressing the intermittency of renewable energy, a key obstacle to the deployment of additional renewables. The quantifiable benefits of the project include increased Tunisian energy production resulting from the additional 50 MWac of capacity added to the grid, as well as reduced greenhouse gas emissions. The unquantifiable benefits include stabilising the grid and removing the first-mover externality/risk associated with the novel BESS technology.

Transition Impact

ETI score: 80

The project is on the Green Economy Transition (GET) Direct Track. All the loan proceeds will be used to develop and construct the 20-MWh BESS, the 50-MWac photovoltaic solar power plant, and associated high-voltage transmission infrastructure to integrate the project into the Tunisian grid. This allows for the project to be 100% GET. The project is expected to lead to greenhouse gas emission reductions of 498,000 tonnes of CO2 equivalent per annum.

Client Information

SOCIETE TUNISIENNE DE L'ELECTRICITE ET DU GAZ

STEG is Tunisia's 100% state-owned vertically integrated national electricity and gas utility company under the supervision of the Ministry of Industry, Mines and Energy. It was founded in 1962 and is responsible for the generation, transmission, distribution, import and export of electricity and gas.

EBRD Finance Summary

EUR 60,000,000.00

Total EBRD financing of up to EUR 40 million and total CTF financing of EUR 20 million to finance the 20-MWh BESS, the 50-MWac photovoltaic solar power plant, and associated high-voltage transmission infrastructure to integrate the project into the Tunisian grid.

Total Project Cost

EUR 60,000,000.00

Additionality

The additionality derives from the financing structure and instruments provided. EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions for such a strategic public project.

Environmental and Social Summary

Category B (ESP 2024). Environmental and social risks associated with the construction and operation of a 50-MWac photovoltaic power plant, a 20-MWh BESS, and a1.2-km, 225-kV grid connection and associated substation are site-specific, and can be readily assessed and managed by implementing an Environmental and Social Action Plan (ESAP).

Environmental and social due diligence is ongoing, and consists of a review of the existing environmental and social assessment carried out for the project, a review of the Client's Health and Safety, Social and Environmental Management System, and site visits. This PSD will be updated when the due diligence is completed.

STEG ("the Client") is an existing client of the Bank and has the capacity to align projects with the EBRD Environmental and Social Requirements (ESRs). It also has a positive track record of compliance with existing ESAPs. The Client already has a standard Health and Safety, Social and Environmental (HSSE) management plan developed for previous projects to World Bank Standards, which will be adapted for this project and aligned with EBRD ESRs. This will include specific management plans to be cascaded to sub-contractors. The HSSE plan will be included in the tender documents to be issued to potential EPC contractors.

As part of the HSSE plan, a labour management plan will be developed for the project to manage contractor- and other intermediated labour in line with labour laws and EBRD's ESR2. Any worker accommodation needed for the project will comply with the EBRD worker accommodation guidance (2009). Project-specific Occupational and Community H&S Plans will be developed with particular attention to worker influx, work in extreme heat conditions, gender-based violence and harassment risks to workforce and communities, as well as traffic management. An appropriate ventilation system will be installed together with the BESS, and an emergency response plan covering fire hazards will be prepared for the operations.

The supply chain associated with the photovoltaic panels and BESS will be managed through specific representations and requirements in public procurement bidding documents. Relevant measures on supply chain mapping, presentation of declaration and no objections of the Bank, as well as verification of sourcing from assessed suppliers, are also included in ESAP. The Client will be required to monitor any emerging risks during project implementation as part of the ESAP.

Environmental and social due diligence results indicate limited air emissions, minimal wastewater generation, and minor use of hazardous materials. Management plans will include dust control measures and waste handling procedures. Dry cleaning of photovoltaic panels will be used during operations to the extent possible, and specific actions regarding photovoltaic material sourcing, maintenance and disposal will align with good international practices.

The project will not result in any physical displacement, and no structures have been identified on site. The land required for the entire project footprint was acquired through negotiated settlements with the previous owner. Limited informal extensive grazing has been recorded on site and further assessment is ongoing to assess appropriate compensation and livelihood restoration measures according to ESR5.

The project is not located in the vicinity of protected or sensitive areas. Biodiversity surveys are still ongoing but are unlikely to identify any sensitive species. In any case, habitat clearance and construction will be undertaken outside of breeding season, and precautionary measures including installation of bird divertors on the grid connection will be implemented by the project. In addition,

minimisation of lighting within the photovoltaic and BESS sites during project implementation, and appropriate fencing to maintain ecological continuity, will be implemented by the project to eliminate any pressure on fauna.

Archaeological screening surveys are ongoing in conjunction with the competent authority, as some burial sites have been reported in the vicinity of the project location. A precautionary chance find procedure will be established to handle any accidental archaeological discoveries during the construction phase. Corresponding trainings will be implemented for the project's workers.

Early engagement with local authorities and adjacent communities has been undertaken by the Client. A dedicated Community Liaison Officer will be designated in the zonal office of the Client before the commencement of the construction phase; the Officer will be responsible for the implementation of the Stakeholder Engagement Plan and management of external grievances throughout the lifetime of the project.

The project's ESAP will be agreed with the Client prior to its presentation to the Board of Directors. The Non-Technical Summary, Stakeholder Engagement Plan, and ESAP have been disclosed on the Client's and the Bank's websites in English, French and Arabic, alongside the PSD. The Bank will closely monitor implementation of the project through environmental and social reporting from the Client and the lender's environmental and social advisor, as well as the Bank's monitoring visits to the project, as necessary.

Green assessments

Paris Agreement alignment

The Project is considered to be aligned with both the mitigation and adaptation goals of the Paris Agreement, based on the application of the EBRD's Paris alignment approach for directly financed investments.

The project is aligned with mitigation goals of the Paris Agreement as it features on the joint MDB aligned list under the category "Energy storage or measures to improve network stability or flexibility that increase consumption of very-low carbon energy" and "Generation of renewable energy with low lifecycle GHG emissions to supply electricity, heating, mechanical energy or cooling".

Material physical climate risks were identified for the project and were found to be either non-material upon further investigation or sufficiently managed via mitigating measures. The project does not contravene national policies for adaptation or the climate resilience of the wider system. It is, therefore, aligned with the adaptation goals of the Paris Agreement.

Green finance attribution

100% of the EBRD financing is classified as green finance, as it supports activities to achieve climate mitigation objectives. The attribution is made in line with the methodology to determine the green finance attribution of EBRD investments, specifically under the criteria "Generation of renewable energy with low lifecycle GHG emissions to supply electricity, heating, mechanical energy or cooling" and "Energy storage or measures to improve network stability or flexibility that increase consumption of very-low carbon energy".

Technical Cooperation and Grant Financing

A comprehensive Technical Cooperation (TC) package, mainly funded by the EBRD's Shareholder Special Fund (SSF), has been mobilised to support the project. The TC package covers a broad range of implementation, due diligence and capacity-building needs.

It includes a Project Implementation Unit (PIU) support consultant to support procurement implementation, as well as implementation support for Enterprise Resource Planning (ERP) to assist with the implementation of the EU-funded ERP system previously mobilised by the Bank for STEG under the Stabilisation and Restructuring Facility. The TC package also supports advance procurement to ensure the timely launch of works' tenders and the PIU support consultant, and further covers all key due diligence workstreams required for project assessment and preparation, including technical due diligence, environmental and social due diligence, and financial and economic feasibility analysis.

In addition, targeted support is provided for the management of PCB-contaminated equipment, helping mitigate environmental risks and ensure compliance with applicable standards.

Company Contact Information

Wajdi Ben Khaled
wbenkhaled@steg.com.tn
+21627633222
www.steg.com.tn
38 Rue Kamel Atatürk, 1080 Tunis, Tunisia

PSD Last Updated

25 Feb 2026

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Photovoltaic plant with Battery Storage - STEG

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)