Image: Scatec ASA

Scatec ASA, a leading provider of 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 a new 120 MW solar power plant, Sidi Bouzid II, in Tunisia. Awarded in December 2024 through a government tender, the PPA will support Tunisia’s ambitious renewable energy goals and bolster the country’s energy security.“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.

In addition, Scatec has entered into a Joint Development Agreement with Aeolus SAS (Aeolus), a subsidiary of the Japanese Toyota Tsusho Group, to collaborate on the project. This partnership builds on the success of their ongoing 60 MW Sidi Bouzid I and 60 MW Tozeur solar projects. Scatec and Aeolus will each hold a 50% stake in the Sidi Bouzid II project.

The total estimated capital expenditure (capex) for the project is EUR 87 million, with Scatec designated as the EPC provider, responsible for about 85% of the capex. Scatec is currently in talks with financial institutions to secure debt financing for the project, and the full financing structure will be announced at financial close, expected in the second half of 2025.

Tunisia is committed to reaching 30% renewable energy by 2030 to reduce emissions, cut costs, and increase energy security. With 97% of electricity production currently derived from gas, of which approximately half 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 years to come.