Renewable energy developer, Scatec ASA, has announced the conclusion of a 25-year Power Purchase Agreement (PPA) with Tunisian state utility Société Tunisienne de l’Electricité et du Gaz (STEG) for the building of a 120 MW solar power plant (Sidi Bouzid II) in Tunisia.
The Norwegian renewable energy company was awarded the tender in December 2024 by the government of Tunisia. The project is expected to help Tunisia achieve its target to have renewable energy constitute 30% of its energy mix by 2030.
Scatec has signed a Joint Development Agreement with Aeolus SAS, a subsidiary of Japan’s Toyota Tsusho Group, for the project. This agreement strengthens their partnership in Tunisia, following the successful collaboration on the 60 MW Sidi Bouzid I and 60 MW Tozeur solar projects, which are currently under construction. Under the terms of the deal, Scatec and Aeolus will each hold a 50% stake in the Sidi Bouzid II project.
Diversifying the energy mix of Tunisia
The project’s total capital expenditure (capex) is estimated at €87 million, with Scatec serving as the designated EPC provider, covering approximately 85% of the capex. Scatec is currently in discussions with selected financial institutions to secure debt financing. The full financing structure will be disclosed upon financial close, 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 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,” says Terje Pilskog, CEO of Scatec.
Tunisia currently relies on gas for 97% of its electricity production, with around half of this fuel imported. This heavy dependence creates an urgent need to expand renewable energy generation to enhance energy security and sustainability.
To address this challenge, Tunisian authorities plan to launch additional solar and wind auctions in the coming years. Scatec aims to capitalize on these opportunities by participating in upcoming tenders, building on its successful partnership with Aeolus and its fully integrated business model to strengthen its presence in Tunisia’s promising renewables market.
