By: Ecofin agency

Tunisia will host a 130-MW photovoltaic solar power plant financed by Japan under its Joint Crediting Mechanism (JCM), local media reported on March 16. The project was selected in February 2026 to receive funding from Japan’s carbon financing program.

The plant will be built in the Gabès region and operated by the Tunisian Company for Electricity and Gas (STEG).

Funding is provided under the JCM, a Japanese government program aimed at supporting low-carbon projects overseas. The mechanism allows greenhouse gas emission reductions to be shared between Japan and the host country, African Manager reported.

Under the agreement, Japan will provide a grant of up to 2 billion yen, equivalent to about 37 million Tunisian dinars ($13.5 million), to support the project. The funding will cover part of the construction costs.

The project will be carried out by Japanese company Marubeni, in partnership with a French firm that has not been named. No commissioning date has been announced so far.

The project is part of efforts to expand renewable electricity generation in Tunisia. According to official data, Tunisia aims to raise the share of renewables in its electricity mix to 35% by 2030. Renewables accounted for about 3.8% of the country’s electricity production, according to International Energy Agency data published in 2023. Natural gas dominates the electricity mix, accounting for most of the country’s electricity generation.