AMEA Power has commissioned a 120 megawatts-peak solar photovoltaic plant in Tunisia’s Kairouan Governorate, adding one of the country’s largest utility-scale renewable assets to the national grid and strengthening North Africa’s push to diversify power generation. The project operates under a 20-year power purchase agreement with Société Tunisienne de l’Electricité et du Gaz, providing long-term offtake certainty for the state utility and stable revenues for the developer.

Located inland from the coast, the Kairouan facility is designed to supply clean electricity at scale, reducing reliance on gas-fired generation and lowering exposure to imported fuels. The plant’s commissioning comes as Tunisia works to accelerate renewable capacity to meet rising demand, manage public finances under energy subsidy pressures, and advance climate commitments that target a larger share of renewables in the power mix by the end of the decade.

The project was financed through a blended structure led by the International Finance Corporation and the African Development Bank, reflecting sustained multilateral support for private power development in emerging markets. Construction progressed through a period marked by global supply-chain volatility and higher borrowing costs, underscoring the role of long-tenor development finance in keeping large infrastructure projects on track. The lenders’ involvement also reflects due diligence standards around environmental and social safeguards, grid integration and operational resilience.

AMEA Power, headquartered in the United Arab Emirates, has expanded rapidly across Africa, the Middle East and Central Asia, positioning itself as a specialist in utility-scale renewables in frontier and growth markets. The Kairouan plant strengthens its footprint in North Africa and adds to a portfolio that spans solar, wind and hybrid projects under long-term contracts with state utilities. For Tunisia, the project demonstrates the bankability of private renewable investments backed by clear regulation and credible offtake arrangements.

Officials involved in the project have highlighted its expected contribution to emissions reduction and local economic activity. During construction, the site generated employment for contractors and suppliers, while ongoing operations are expected to support skilled technical roles and ancillary services. Grid studies were undertaken to ensure smooth integration and system stability, an issue of growing importance as variable renewable energy rises within the national network.

The power purchase agreement with STEG provides a predictable framework for tariff payments over two decades, a feature that remains central to attracting private capital into the power sector. Tunisia has refined its renewable procurement processes in stages, balancing competitive pricing with bankability, and the Kairouan project is widely viewed as a reference point for future tenders. Market participants note that clarity on grid access, land allocation and payment security has been decisive in sustaining investor interest.

Beyond the immediate capacity addition, the project fits within a broader regional trend. North African countries are scaling solar deployment to harness high irradiation levels, ease fiscal pressures from fuel imports and position themselves for potential cross-border power trade. Multilateral lenders and export credit agencies continue to play a catalytic role, particularly where local capital markets remain shallow or where currency risks require mitigation.

For AMEA Power, commissioning the plant advances a strategy focused on disciplined growth and operational delivery. The company has signalled interest in further opportunities across Africa, including hybrid solutions that pair solar with storage to enhance dispatchability. Industry analysts view such combinations as the next phase of market development, especially as grids absorb higher shares of intermittent generation and seek flexibility without escalating costs.