Project secures €96 million in financing, marks third renewable venture for Norwegian developer Scatec in the country
Norwegian renewable energy firm Scatec has given the green light to construction of a 120-megawatt solar facility in central Tunisia, marking a significant step in the country’s drive to reduce its heavy reliance on imported natural gas.
The Sidi Bouzid II project, which secured financing this week, will generate 276 gigawatt-hours of electricity annually once operational in late 2027 — enough to offset nearly 107,000 tonnes of carbon dioxide emissions each year.
Scatec, which holds a 50% stake alongside Japanese partner Aeolus SAS — a Toyota Tsusho Group subsidiary — won the power purchase agreement through a government tender in December 2024. The €96 million venture represents the company’s third solar project in Tunisia, following earlier developments that have cemented its presence in the North African market.
“This demonstrates our ability to scale through repeatable tender opportunities,” said Terje Pilskog, Scatec’s chief executive. “The fundamentals for renewables here are strong, and the growth potential remains significant.”
The timing is critical for Tunisia, where natural gas accounts for 95% of electricity generation — with over 60% of that supply imported. The government has set an ambitious target of sourcing 35% of its power from renewable sources by 2030, aiming to both cut costs and strengthen energy security.
The project’s financing package includes loans from the European Bank for Reconstruction and Development and the European Investment Bank, supplemented by grant funding from the EU Neighbourhood Investment Platform and guarantees under the European Fund for Sustainable Development Plus. Debt will cover approximately 70% of the total cost.
Scatec will manage engineering, procurement, construction, and ongoing operations, with construction expected to ramp up immediately toward a late-2027 commercial launch.
TunisianMonitorNews
