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Tunisia Lays the Foundation for a Nationwide Solar Energy Support Programme

November 13, 2023
Scaling up Renewable Energy and Energy Efficiency in the Tunisian Building Sector.
Image: © National Agency for Energy Conservation (ANME)

The month of October began with the signing a financing agreement worth EUR 10 million between the Tunisian Energy Agency (ANME) and GIZ, laying the foundation for an unprecedented push for widespread solar PV adoption across Tunisia. Shortly after, on 31 October, ANME and the Tunisian utility STEG celebrated another achievement with the adoption of a convention on the implementation of PROSOL ELEC Economique, a large-scale solar energy support programme. Both agreements mark crucial milestones for the Tunisian renewable energy strategy, as PROSOL ELEC Economique will finance residential photovoltaic (PV) systems for 65,000 middle-income households in the whole country.

The energy transition on the roofs of the Tunisian middle class is thus continuing to take shape, as the decentralised expansion of renewable energies remains a central building block of Tunisia’s green transformation. In the wake of rising energy costs and high inflation, the programme brings much needed relief to households, who can reduce their monthly electricity bills and also become electricity self-sufficient in the long term. Besides such crucial economic benefits, the initiative is expected to yield a substantial reduction of almost one million tonnes of greenhouse gas (GHG) emissions over the coming years.

Implemented by ANME and GIZ, the programme is co-financed by the Mitigation Action Facility and the Government of Tunisia, in close collaboration with Attijari Bank, as well as STEG. By providing financial incentives for middle-income households to install PV systems, the programme aims to increase the accessibility and affordability of renewable energy, enabling citizens to contribute actively to mitigating climate change while reaping economic benefits.

Eligible households will benefit from a 1,500 TND (approx. 470 EUR) investment subsidy as well as a subsidised loan with only 3% interest. This loan is automatically repaid through the monthly electricity bill. As the monthly repayment does not exceed the household’s previous electricity bill, there is no additional cost to the beneficiaries. Learn more about PROSOL ELEC Economique and the Tunisia – Clean Energy in Buildings project behind it here.