Renewable energy company Scatec has completed financing and begun construction of the 120 MW Sidi Bouzid II solar power plant in Tunisia.
The €96 million project is expected to become operational in the second half of 2027.
According to Scatec, the Sidi Bouzid II project will generate 276 GWh of electricity annually and reduce CO₂ emissions by nearly 107,000 tons per year.
In Tunisia, 95% of electricity production relies on natural gas, more than 60% of which is imported.
The country aims to reach 35% renewable energy in its electricity mix by 2030. Scatec said renewables will help reduce production costs and strengthen energy independence.
The power purchase agreement was awarded in December 2024 following a government tender aimed at supporting Tunisia’s renewable energy goals and strengthening national energy security.
The project is being developed in partnership with Aeolus Renewable Energy, with Scatec and Aeolus each holding a 50% stake.
“Sidi Bouzid II is our third project under construction in Tunisia and strengthens our partnership with Aeolus and our position in the country,” said Scatec CEO Terje Pilskog, cited by Engineering News.
“The project demonstrates our ability to grow through repeated tender-based opportunities supported by a strong partnership model.”
Scatec will provide engineering, procurement and construction (EPC), asset management and operations and maintenance services, with EPC accounting for about 75% of total capital expenditure.
The project will be financed through a mix of non-recourse debt and equity, with leverage of around 70%.
Tunisia’s renewable energy roadmap
Tunisia began developing wind energy in the 1990s with pilot projects using low-capacity turbines for rural electrification, later expanding to higher-capacity installations including a 10 MW wind farm in 2000.
Following the success of the Sidi Daoud wind farm, a second project was built in Bizerte, consisting of 143 turbines with a total installed capacity of 190 MW across the Métline and Kchabta sites.
Wind energy development is expected to contribute to job creation, industrial integration, and added value. Tunisia’s strategy aims to increase the share of renewables (excluding hydropower) in electricity production from around 3% in 2013 to 30% by 2030.
The national solar plan targets 3,725 MW of installed renewable capacity by 2030, including at least 1,700 MW from wind energy.
With new regulations supporting renewable electricity production and strong wind potential, Tunisia’s wind sector is expected to grow significantly, contributing to energy diversification and economic growth. Renewables are also seen as a promising sector for private investment.
Environmentally, large-scale wind energy deployment is expected to significantly reduce greenhouse gas emissions and help Tunisia access international climate financing.
