Scatec, the Norway-based global renewable energy company, and Aeolus SA, a subsidiary of the Toyota Tsusho Group, have formed a strategic partnership to develop and own renewable energy projects in Tunisia.
The collaboration has already yielded results with the successful financial close of the 60-megawatt (MW) Sidi Bouzid and Tozeur solar projects, Scatec said in a press release reported by Zawya.
According to the statement, Scatec will now commence construction of the two solar plants, having secured 20-year power purchase agreements (PPAs) with Tunisian state-owned utility STEG in 2019.
Aeolus has acquired a 49 per cent stake in the projects, while Scatec retains a 51 per cent majority stake. Scatec will be responsible for EPC, asset management and O&M services, and will contribute approximately 84 percent of the total investment.
The statement said that thanks to Aeolus’ involvement, the project has been selected by the Japanese Ministry of the Environment for the Joint Crediting Mechanism (JCM) model project program.
With a total project cost of €79 million, the projects will be financed through a combination of non-recourse project finance debt, concessional loans and equity contributions from the partners. The Japanese carbon credit funding, expected after the commercial operation date (COD), will significantly reduce the equity requirement to approximately 15 percent.
The European Bank for Reconstruction and Development (EBRD) and Proparco are the senior lenders for the projects, with additional concessional financing from the Clean Technology Fund and the Global Environment Facility (GEF).
Tunisia has set an ambitious target to increase the share of renewable energy in the country’s electricity generation mix to 35 per cent by 2030.
