The smart grid project was announced in 2017 by the Tunisian Electricity and Gas Company (STEG), but was delayed due to lack of funding.
The AFD funds will be allocated to the implementation of the first phase of the project, which will involve the development of control and communication stations and the improvement of infrastructure. It includes installation of 430,000 “intelligent” meters over three years in homes and businesses in Sfax Governorate in southern Tunisia.
Smart meters will later be deployed throughout the country.
Tunisia is planning to increase its electricity generation capacity to 8,300 MW by 2023 and secure universal access to energy by that date.
The AFD loan, to be repaid over 20 years with a grace period of up to 7 years, is part of the Tunisian government’s efforts to establish a strategy of energy switching aimed at reducing costs and enhancing operational efficiency.
The objective of this smart grids program is to integrate renewable energies into the Tunisian electricity grid, making it possible to support the energy transition and the fight against climate change. In its energy strategy, the country aims to install an additional 1,000 megawatts of photovoltaic power by 2020.