Scatec and Aeolus Partner to Develop 120 MW Solar Projects in Tunisia

Scatec ASA and Aeolus SA, part of the Japanese conglomerate Toyota Tsusho Group, have signed a partnership agreement to jointly develop and own renewable energy projects in Tunisia. Financial close has been achieved for the 120 MW Sidi Bouzid and Tozeur solar projects (each 60 MW), which are part of this agreement. Scatec will now commence construction.

Under the partnership, Aeolus has acquired a 49% stake in the projects, while Scatec holds the remaining 51%. With Aeolus’s participation, the project has been selected by Japan’s Ministry of the Environment for the Financing Programme for Joint Crediting Mechanism (JCM) Model Projects in FY2023.

The total project cost (capex) is estimated at EUR 79 million, financed through non-recourse project finance debt, concessional loans, and equity from the partners. Japanese carbon credit funding, which will be received post-commercial operation date (COD), will reduce the equity partners’ funding need to approximately 15%.

Scatec will provide Engineering, Procurement & Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services, with the EPC scope covering approximately 84% of capex.

“We are excited to welcome Toyota Tsusho – Aeolus on board for the development of our projects in Tunisia. We would like to thank Toyota Tsusho Group’s management for their support and trust in Scatec and are looking forward to embarking on the construction phase of the two projects. The partnership highlights our track record in structuring projects, securing strong partners, and obtaining the necessary financing to drive profitable renewable energy projects forward. We would like to thank our key lending partners and the Government of Tunisia and Japan for their support and drive of the green transition in the region,” said Scatec CEO Terje Pilskog.

“We are delighted to have partnered with Scatec on these projects. We extend our gratitude to Scatec for their persistent efforts over the years and their trust in us. These projects mark Aeolus’s first commemorative investment since our establishment in March 2024. We are also grateful for the cooperation and efforts of the governments of Tunisia and Japan, as well as the lenders, advisors and the everyone involved in bringing these projects to fruition. Aeolus remains committed to contributing to the development of Tunisia and other African countries through renewable energy projects,” added Aeolus CEO Hideharu Toba.

“We are proud to partner with Scatec and Aeolus – Toyota Tsusho Group on their first utility-scale solar projects in Tunisia. These projects, cofinanced with our long-standing partners Proparco, the Clean Technology Fund and the Global Environment Facility, are a testament to the sponsors’ commitment to support the development of Tunisia’s renewable energy sector,” commented Nandita Parshad, Managing Director Sustainable Infrastructure Group EBRD.

“We are very proud to strengthen our long-term relationship with Scatec, a key player in the renewable energy sector across emerging markets, and to join forces with Aeolus – Toyota Tsusho Group, as both are now jointly engaged in the Sidi Bouzid and Tozeur solar projects that we have supported from the inception,” remarked Françoise Lombard, CEO at Proparco. “The entire Agence Française de Développement Group, including Proparco, remains committed to the Tunisian authorities’ ambitious goal of increasing the share of renewable energy in the country’s power generation mix to 35% by 2030. The two projects are paving the way for many other high-impact investment opportunities in Tunisia.”