Scatec Signs 25-Year PPA for 120 MW Solar Plant in Tunisia, Partnering with Aeolus

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 aiming to generate 30% of its energy from renewable sources by 2030, as part of its strategy to reduce emissions, lower costs, and improve energy security. Currently, 97% of the country’s electricity is produced from gas, nearly half of which is imported. With a pressing need for more renewable energy, Tunisia is planning additional solar and wind auctions in the coming years. Scatec will continue to explore opportunities in Tunisia’s growing renewables market, leveraging its partnership with Aeolus and its fully integrated business model.