Scatec ASA, a leading provider of renewable energy solutions, has signed a 25-year Power Purchase Agreement (PPA) with Tunisian state-owned utility Société Tunisienne de l’Electricité et du Gaz (STEG) for another 120 MW solar power plant (Sidi Bouzid II) in Tunisia, it said Monday.
The PPA was awarded through a government tender in December 2024 to support Tunisia’s ambitious renewable energy targets and enhance the country’s energy security.
Scatec has also signed a joint development agreement for the project with Aeolus SAS (Aeolus), part of the Japanese conglomerate Toyota Tsusho Group.
The agreement strengthens the partners’ collaboration in Tunisia, building on the success of the 60 MW Sidi Bouzid I and 60 MW Tozeur solar projects currently under construction. Scatec will own 50% of the Sidi Bouzid II project, while Aeolus will own 50%.
The total estimated capital expenditure (capex) for the project is EUR 87 million and Scatec will be the designated EPC provider with an EPC share of approximately 85% of the capex.
Scatec is currently in dialogue with selected financial institutions for debt financing of the project and the overall financing structure will be communicated at financial close, which is expected in the second half of 2025.
“This agreement marks a significant milestone for Scatec in Tunisia, reinforcing our collaboration with Aeolus and our commitment to driving the transition to renewable energy in the region.
Tunisia is heavily dependent on gas imports, so projects like this are essential to diversify the energy mix and meet the country’s ambitious renewable energy targets,” said Terje Pilskog, CEO of Scatec.
Tunisia has committed to achieving 30% renewable energy by 2030 in order to reduce emissions, cut costs and increase energy security. With 97% of electricity generation currently coming from gas, around half of which is imported, Tunisia has an urgent need for additional renewable energy generation.
To meet this demand, the authorities are planning further solar and wind auctions in the coming years. Scatec will continue to explore Tunisia’s attractive renewable energy market through upcoming auctions, leveraging its partnership with Aeolus and fully integrated business model.
