The European Bank for Reconstruction and Development (EBRD) has approved EUR 19 million in debt financing for Qair’s 100 MW solar PV project in Gafsa, Tunisia, marking another key step in the country’s transition toward renewable energy. The total project cost is estimated at EUR 84 million, with funding structured through Qair Gafsa Solar, a special purpose vehicle backed by CVC DIF and Qair International.
About the Sponsors 🤝💼🌍
CVC DIF Capital Partners is a leading global infrastructure investment firm headquartered in Amsterdam, the Netherlands, and now part of the CVC Group. It manages several multi-billion-euro funds with a focus on renewable energy, transport, and social infrastructure. The firm is known for supporting sustainable assets through long-term partnerships and value creation strategies across Europe, North America, and emerging markets.
About Qair International 🌍⚡💼
Founded in Montpellier, France, Qair is an independent renewable energy producer with a portfolio exceeding 1 GW of installed capacity and a global development pipeline of over 30 GW. The company operates across Europe, Africa, Asia, and Latin America, emphasizing sustainable, community-driven energy solutions. Backed by investors such as CVC and DIF Capital Partners, Qair develops, finances, builds, and operates renewable assets including offshore wind, solar PV, and hydroelectric plants. Its growing African footprint includes projects in Uganda, Tanzania, and now Tunisia, where it continues to expand through public-private partnerships.**. ☀️⚡🌿
Project Overview 📊🌞🌍
The Gafsa solar project represents one of Tunisia’s most significant private renewable energy investments to date. Under a 25-year Power Purchase Agreement (PPA) with STEG (Société Tunisienne de l’Électricité et du Gaz), the project will supply all generated electricity directly to the national grid. This long-term offtake arrangement ensures predictable cash flows, crucial for both lenders and equity investors. ☀️⚡📈
Once operational, the facility will generate enough clean energy to power approximately 70,000 Tunisian households, displacing over 90,000 tonnes of CO₂ annually. 🌱💡🇹🇳
Financial Structure and Modelling Considerations 💰📊💡
The project’s capital structure combines senior debt from EBRD with equity provided by Qair and its partners. With a debt-to-equity ratio likely between 70:30 and 75:25, this transaction aligns with typical non-recourse project finance standards for solar IPPs in emerging markets. ☀️💶📈
For financial modellers, key aspects include:
- PPA Revenue Modelling: Indexed tariff structure ensuring inflation-linked returns across 25 years.
- Debt Service Coverage Ratios (DSCR): Minimum DSCR expected above 1.3x, ensuring sufficient cash buffer for repayment.
- IRR Estimation: Equity IRR projections are expected to range between 11–13%, depending on final construction costs and energy yield assumptions.
- Sensitivity Testing: Scenarios for solar irradiance variation (±10%), O&M cost escalation, and FX exposure to EUR/TND should be modelled to evaluate robustness.
For those interested in building or benchmarking similar financial structures, the Finteam Solar PV Model Template provides an advanced tool for IRR, NPV, and DSCR simulation in solar projects. You can explore it here: Finteam Solar PV Model Template on Eloquens. 🌞📘💼
Strategic Context: Tunisia’s Energy Transition 🌍⚡🌱
Tunisia is targeting 35% renewable generation by 2030, in line with its National Energy Transition Strategy. However, achieving this goal requires over 3 GW of new renewable capacity within five years. Projects like Gafsa’s 100 MW solar plant play a crucial role in reducing fossil fuel dependency and stabilising grid supply, particularly in southern regions. ☀️🌞📊
The EBRD’s involvement underscores the importance of multilateral participation in de-risking infrastructure finance in North Africa. The Bank has financed over EUR 1.6 billion in Tunisia across various sectors, with energy representing a growing share of its portfolio. 💶🏦🌍
Why It Matters for Investors and Modellers 📈💼🌿
For investors, this project represents a clear example of how structured PPAs, long-term concessional financing, and robust risk allocation can create a bankable renewable energy asset even in frontier markets. For modellers, the project offers a case study in: ☀️📊💡
- Integrating sovereign credit risk into discount rate calibration.
- Assessing climate and currency risks on project IRR.
- Optimising the blend between concessional and commercial capital for sustainable financing.
Looking Ahead 🚀☀️🌍
With EBRD’s support, Tunisia continues to attract credible international sponsors like Qair. This transaction will likely serve as a template for future solar IPPs under the country’s renewable procurement framework. As the pipeline of solar projects expands, investors and developers will increasingly rely on transparent financial modelling to secure optimal terms and mitigate project-level risks. 🌱📊⚡
The Gafsa solar project thus stands as a benchmark for how well-structured, privately financed renewables can accelerate North Africa’s energy transition — one modelled spreadsheet, and one megawatt, at a time. 🌞🌿🇹🇳
Finteam 