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Scatec ASA, a global leader in renewable energy solutions, has signed a 25-year Power Purchase Agreement (PPA) with the Tunisian state utility Société Tunisienne de l’Electricité et du Gaz (STEG) for the development of a new 120 MW solar power plant, Sidi Bouzid II, in Tunisia. This agreement was awarded in December 2024 through a government-led tender designed to support Tunisia’s ambitious renewable energy targets and enhance the nation’s energy security. In addition to the PPA, Scatec has entered into a Joint Development Agreement with Aeolus SAS, a subsidiary of the Japanese conglomerate Toyota Tsusho Group, to collaborate on the Sidi Bouzid II project. Both partners will hold equal ownership, with Scatec and Aeolus each owning 50%. This partnership builds on the success of their previous ventures, the 60 MW Sidi Bouzid I and 60 MW Tozeur solar projects, which are currently under construction. The total capital expenditure (capex) for Sidi Bouzid II is estimated at EUR 87 million. Scatec will serve as the engineering, procurement, and construction (EPC) provider, covering approximately 85% of the capex. The company is currently in discussions with select financial institutions to secure debt financing, with the final financial structure expected to be confirmed by the second half of 2025. Terje Pilskog, CEO of Scatec, said in a statement, “This agreement marks a significant milestone for Scatec in Tunisia, reinforcing our collaboration with Aeolus and our commitment to driving the renewable energy transition in the region. Tunisia depends significantly on gas imports, making projects like this essential for diversifying the energy mix and achieving the country’s ambitious renewable energy goals.” Tunisia has set an ambitious target to achieve 30% renewable energy by 2030 to reduce emissions, lower energy costs, and strengthen energy security. Presently, 97% of the country’s electricity is generated from gas, with around half of that being imported. To reduce reliance on imported gas and increase renewable energy capacity, Tunisia plans to hold more solar and wind energy auctions in the coming years. Scatec, with its proven track record and strong partnership with Aeolus, aims to continue exploring Tunisia’s growing renewables market, leveraging its fully integrated business model to pursue future projects. |
