AMEA Power Reaches Financial Close on 120 MW Solar Project

AMEA Power, a renewable energy company, achieved financial closure on its 120 MW solar project in Tunisia. When commissioned, the $86 million project will be the company’s first operational asset in the country.

The solar project 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 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 through  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.

According to the press release, This is the first solar project to reach financial close under the concession regime in Tunisia. The concession regime covers projects over 10 MW for solar PV, awarded through a competitive bidding process.

The government of Tunisia aims to increase the share of renewable energy in its energy mix to 35% by 2030. 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.

AMEA Power’s Chairman, Hussain Al Nowais, said: “We are delighted to reach financial close on this 120 MW 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.”

According to Mercom’s 1H and Q2 2023 Solar Funding and M&A Report, in the first half (1H) of 2023, 116 solar project acquisitions totaling 25.5 GW were announced compared to 148 project acquisitions totaling 37.8 GW in 1H 2022.

Recurrent Energy, a wholly-owned subsidiary of Canadian Solar and a utility-scale solar and energy storage project developer, recently closed project financing for its 134 MW (100 MWac) Liberty Solar project.