Scatec Reaches Financial Close for 120 MW Sidi Bouzid II Solar Project in Tunisia

Renewable energy company Scatec ASA has achieved financial close for the 120 MW Sidi Bouzid II solar power project in Tunisia, marking another milestone in the country’s transition toward cleaner energy sources and enhanced energy security.

The project was awarded under a government-led renewable energy tender in December 2024 and has been developed in partnership with Aeolus SAS, a subsidiary of the Toyota Tsusho Group.

According to Scatec, the Sidi Bouzid II project represents the company’s third solar project to enter the construction phase in Tunisia. The development further strengthens the long-standing collaboration between Scatec and Aeolus while expanding their renewable energy footprint in the North African nation.

Commenting on the development, Terje Pilskog, CEO of Scatec, stated that the project reinforces the company’s position in Tunisia, a market with strong renewable energy fundamentals and significant growth potential. He added that the project highlights Scatec’s ability to scale through competitive tender-based opportunities supported by strategic partnerships and a capital-light execution model.

Tunisia currently relies heavily on natural gas for electricity generation, with approximately 95% of its power produced from gas-fired sources. More than 60% of the country’s natural gas requirements are imported. To reduce dependence on imported fuels and strengthen energy security, Tunisia has set a target of generating 35% of its electricity from renewable energy sources by 2030.

Once operational, the Sidi Bouzid II solar facility is expected to generate approximately 276 GWh of electricity annually. The project is also projected to reduce carbon dioxide emissions by nearly 107,000 tonnes per year, contributing to the country’s decarbonization objectives.

The total investment required for the project is estimated at EUR 96 million. Financing will be provided through a combination of non-recourse debt and equity, with leverage expected to reach approximately 70%. Under the ownership structure, Scatec and Aeolus will each hold a 50% stake in the project.

The project’s senior lenders include the European Bank for Reconstruction and Development and the European Investment Bank. Additional support is being provided through grant funding from the EU Neighbourhood Investment Platform and guarantees from the European Fund for Sustainable Development Plus.

Scatec will serve as the Engineering, Procurement and Construction (EPC) contractor and will also provide Asset Management and Operations & Maintenance services for the facility. The EPC scope accounts for approximately 75% of the project’s total capital expenditure.

Construction is now set to move forward, with commercial operations expected to commence during the second half of 2027.