Norwegian renewable energy producer Scatec ASA has signed a 25-year power purchase agreement (PPA) with the Tunisian national electricity and gas company (STEG) for a new 120 MW solar power plant in Sidi Bouzid, Tunisia.
Awarded in December 2024, this contract (named Sidi Bouzid II) is part of a government tender aimed at supporting Tunisia’s ambitious renewable energy targets in order to strengthen the country’s energy security.
In parallel, Scatec has also signed a joint development agreement with Aeolus SAS (Aeolus), part of the Japanese conglomerate Toyota Tsusho Group, for this project. This agreement, which aims to strengthen the partners’ collaboration in Tunisia, builds on the success of the 60 MW Sidi Bouzid I and 60 MW Tozeur solar projects currently under construction. As a result, Scatec and Aeolus will each own 50% of the Sidi Bouzid II project, according to a statement issued by the company from Oslo
The total cost of the project is 87 million euros. Scatec will be the engineering, procurement and construction (EPC) supplier, with an EPC share of around 85% of the total cost. Scatec is currently in discussions with selected financial institutions for the debt financing of the project. The full financial structure will be announced at financial close, scheduled for the second half of 2025.
“This agreement marks an important milestone for Scatec in Tunisia, strengthening our collaboration with Aeolus and our commitment to fostering the transition to renewable energy in the region. Tunisia relies heavily on imported gas, which makes projects like this essential to diversify the energy mix and meet the country’s ambitious renewable energy targets,” said Scatec CEO Terje Pilskog.
Tunisia is committed to achieving 30% renewable energy by 2030 in order to reduce emissions, cut costs and boost energy security. With 97% of electricity generation currently based on gas, about half of which is imported, Tunisia urgently needs additional renewable energy production. To meet this demand, the authorities plan to issue new calls for tenders for solar and wind power in the coming years.
As a result, Scatec will continue to explore the Tunisian renewable energy market through these tenders, while building on its partnership with Aeolus and its fully integrated business model.
Scatec ASA, based in Oslo, Norway, is a provider of renewable energy solutions, accelerating access to clean, reliable and affordable energy in emerging markets. As a leading player in the sector, Scatec today develops, builds, owns and operates renewable energy plants on five continents.
Scatec remains deeply committed to growing its renewable energy capacity, driven by its passionate employees and partners, united by a common vision: “Improving our future”.
TunisianMonitorOnline (Dhouha Talik – English: NejiMed)
