The funds will be used by local state-owned utility STEG to support the deployment of 85 MW of new residential PV capacity across the Northern African country.
The solar facility will be built by Italian PV developer Ternienergia in the south of the country.
The German Federal Enterprise for International Cooperation (GIZ) will provide the Tunisian government with €7 million. The North African country will use the donation to finance the preliminary support project of its 1 GW renewable energy plan, which includes the installation of 650 MW of solar.
The Italian solar developer will build a 10 MW PV facility in Tozeur, southern Tunisia. The company will sign the $12.5 million contract for the project within a few days.