EU boosts Tunisia’s clean energy transition with €35.8m funding
Photovoltaic power plant for solar power in Tunisia (via Eni)
The European Union has agreed to provide Tunisia with €35.8 million in grant financing under the Neighbourhood Investment Platform (NIP) to speed up Tunisia’s renewable energy and grid infrastructure projects, according to fundsforNGOs on January 19th.
The grant is split between two major EU development partners, €20.4 m with the European Bank for Reconstruction and Development (EBRD), and €15.4 m with EIB Global (European Investment Bank’s international arm). The grant fits the broader Global Gateway Africa–Europe Investment Package, which is a coordinated effort by Europe to support long-term sustainable infrastructure projects.
Tunisia’s energy transition is one of its national development goals, as the country moves to more sustainable energy resources like solar energy to promote energy security. As of 2025, Tunisia’s electricity production falls short of national demand, and it gets most of its energy resources from Algeria’s gas.
Tunisia also faces regular power outages, especially after its main energy supplier, Algerian gas, came under domestic strain. The EU grant is meant to accelerate renewable energy generation and electricity infrastructure development, with its first project being to build two large solar power developments meant to add 400 megawatts of solar power to Tunisia’s electricity system.
In the long term, the project will support Tunisia’s goal of getting 35% of its electricity from renewable sources by 2035, by also encouraging private investors and international lenders to put more money into the renewable energy sector.
The EU has been one of Tunisia’s largest partners in finance, trade, and development cooperation for decades, with European companies creating over 400,000 jobs in Tunisia. In 2025, the former head of the European Investment Bank (EIB), Jean-Luc Revereault, boasted of Tunisia’s rank among the EU’s top beneficiaries, suggesting that the EIB’s reach extends beyond infrastructure into social provision, including education initiatives, school refurbishments, and wheat purchase financing.
Since 2023, the EU has committed over €600 million in grants for investments estimated at €5 billion across Tunisia. But Revereault has attributed project delays to the agreements being rushed through without adequate feasibility studies, prompting concerns about the strength of oversight and whether pressure to release funds takes precedence over long-term stability.
Some critics even argue that European energy projects are driven by Europe’s energy diversification needs rather than Tunisia’s national interests. Europe eyes Africa as its green energy source, with Tunisia’s Ministry of Industry, Mines, and Energy, saying that it will be able to export at least 5.5 to 6 million tonnes of green hydrogen to Europe by 2050.
As green hydrogen is the fuel of the future, European delegations have previously discussed the potential of using solar power to produce green hydrogen and transferring it to Europe. As part of this agenda, Tunisia is giving up large amounts of land for these projects, often from its farmers, ultimately threatening the food security of the African nation as well.
While Tunisia tries to recover from its debt, the government tries to push on its national development goals through sustainable practices, yet in some instances, with heavy environmental and health risks; as seen in the recent protests against the phosphate processing plant in the coastal city of Gabes.
fundsforngos.org, Maghrebi.org
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