AMEA Power Reaches Financial Close on the 120MW Solar Power Plant in Tunisia

• The 120-megawatt solar photovoltaic project is the first project under the Tunisian Concession Regime, reaching financial close

• The project was awarded to AMEA Power in December 2019 further to an international tender program

Dubai, United Arab Emirates; September 26th 2023: AMEA Power, one of the fastest growing renewable energy companies based in the Middle East, announced today it has reached financial close on its 120MW solar PV project in Tunisia. When commissioned, the US$86 million project, will be the company’s first operational asset in the country.

His Excellency, Ahmed Hachani, Head of Government of Tunisia; Ms Ahlem Beji Sayeb and Mr. Belhassen Chiboub, respectively Head of Cabinet and General Director of Electricity and Renewable Energies at the Ministry of Industry, Mines and Energy; Her Excellency Dr. Iman Al-Salami, Ambassador of the United Arab Emirates to the Republic of Tunisia; Mr. Hussain Al Nowais, Chairman of AMEA Power; and Nicolas Felix Souche, Regional Industry Manager, Infrastructure, North Africa and the Horn of Africa at the International Finance Corporation (IFC) and other dignitaries attended the ceremony, which took place at the government headquarters in Al Qasba.

The solar plant is being implemented by Kairouan Solar Plant, a project company registered in Tunisia and fully owned by AMEA Power, and will be located in Metbassta, Kairouan governorate. The project is being financed by IFC, a member of the World Bank Group, and the African Development Bank (AfDB).

The project was awarded to AMEA Power in December 2019 further to an international tender program launched by the Ministry of Industry and SMEs in Tunisia. The Concession Agreement and the Power Purchase Agreement were signed in June 2021 and ratified by the government of Tunisia in May 2022.

This is the first solar project to reach financial close under the concession regime in Tunisia. The concession regime covers projects over 10MW for solar PV, awarded through a competitive bidding process. The solar project is being built under a Build-Own-Operate (BOO) model and will generate 222 GWh of clean energy per year, enough to power more than 43,000 households. The solar plant is expected to be commissioned by mid-2025 and will avoid 117,000 tonnes of CO2 over the course of its life.

As part of AMEA Power’s “Community Investment and Development Program”, the company is working closely with the local community on planned initiatives aligned with the United Nations’ Sustainable Development Goals.

The government of Tunisia aims to increase the share of renewable energy in its energy mix to 35% by 2030. This is a significant commitment in a country that is highly dependent on fossil fuel-based energy, mostly through imports. The Kairouan project directly supports the reduction of Tunisia’s energy dependence and improves the trade deficit of the country.

“The Government is expressing its firm commitment to successfully develop the 120MW Kairouan PV Solar project, which represents a significant step forward in the country’s energy transition,” said Tunisia’s Head of Government, Ahmed Hachani.

Following the ceremony, AMEA Power’s Chairman, Hussain Al Nowais, said: “We are delighted to reach financial close on this 120MW solar power plant in Tunisia, our first project in the country. This is a significant milestone for AMEA Power and for Tunisia, as it represents the largest solar project fully developed in the country to date. Despite all the challenges that the market has been experiencing since the COVID pandemic, we are proud that we are delivering this project and honoring our commitment to supporting Tunisia’s transition to clean energy. We are grateful for the strong support of our lenders and the Tunisian government in making this project a reality.”

“This project represents a positive stride towards Tunisia’s green transition. South-South investments such as this one underscore the essential role that private sector partners can play in the energy transition. This project is in line with our strategy to enable South-South investments, including from Gulf Cooperation Council countries to emerging markets,” said Hela Cheikhrouhou, IFC’s Regional Vice President, Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan.

“This ambitious, renewable energy project will not only bring more affordable, clean energy to the people of Tunisia, but it will help Tunisia achieve its energy goals and attract more private investments into future green projects,” said Sérgio Pimenta, IFC’s Vice President for Africa. “Through the project, we’re proud to build on our partnership with AMEA Power to expand their operations across North Africa, helping address the effects of climate change in the region.”

“We are delighted to reach this milestone, the signing of project agreements, making the first disbursement, and therefore commencement of construction of Tunisia’s first solar Independent Power Producer (IPP) project imminent. This accomplishment is testament to AfDB’s dedication to promoting sustainable energy solutions in Africa. Moreover, the successful collaboration between the Government of Tunisia, AMEA Power, the African Development Bank, SEFA, and the IFC speaks volumes about our collective commitment to helping Tunisia reach its 35% clean energy target by 2030,” said Dr Kevin Kariuki, Vice President of Power, Energy, Climate, and Green Growth at the African Development Bank.

AMEA Power is rapidly expanding its investments in wind, solar, energy storage and green hydrogen, demonstrating its long-term commitment to the global energy transition. AMEA Power has committed to mobilizing US$5 billion to achieve 5GW of renewable energy capacity in Africa by 2030. The company is currently active across 20 countries.

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About AMEA Power

Headquartered in Dubai, AMEA Power is a developer, owner and operator of renewable energy projects. As one of the fastest growing renewable energy companies in the region, the company is rapidly expanding its investments in wind, solar, energy storage and green hydrogen, demonstrating its long-term commitment to the global energy transition. AMEA Power has assembled a world class team of industry experts to deliver projects across Africa, the Middle East and other emerging markets.

Contacts:

E-mail: Barbro.Ciakudia@ameapower.com

Landline: +971 (0) 4 310 7050

Mobile: +971 (0) 56 412 1756

For more information, please visit: www.ameapower.com