Scatec ASA Signs 25-Year PPA for Solar Plant in Tunisia

Scatec ASA, a renewable energy solutions provider signed a 25-year Power Purchase Agreement (PPA) with Tunisian state utility Société Tunisienne de l'Electricité et du Gaz (STEG) for the construction of the 120 MW Sidi Bouzid II solar power plant in Tunisia.

Partnership with Aeolus SAS

Apart from the PPA, Scatec also signed a Joint Development Agreement with Aeolus SAS, which is a Toyota Tsusho Group company. The partnership will facilitate the development of the 60 MW Sidi Bouzid II solar project, the sequel to under-development 60 MW Sidi Bouzid I and 60 MW Tozeur solar projects.

The two firms will jointly own the Sidi Bouzid II project with each having a 50% stake. The deal also finalizes the partnership of Scatec and Aeolus in Tunisia's renewable energy market.

Project Investment and Financing Details

Sidi Bouzid II solar project will have a total capex of €87 million. Scatec will implement the project's engineering, procurement, and construction (EPC) covering about 85% of the total capex. Scatec is negotiating project debt financing and will disclose the ultimate structure once the financial close in 2025 is completed.

Enabling Tunisia's Renewable Energy Aspirations

This transaction is an important step towards Tunisia's transition to renewable energy. Tunisia aims to reach 30% of renewable energy by 2030 to cut emissions and costs and ensure energy security. Tunisia depends on gas for 97% of electricity, half of which is imported from other countries.

Terje Pilskog, CEO of Scatec, said,"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."

TotalEnergies strengthens clean energy strategy with acquisition of SN Power and African hydropower projects

Tunisia's Emergence as a Developing Renewable Energy Market

As Tunisia moves to capitalize on renewable energy, the government will put up additional tenders for wind and solar in the next few years. Scatec, with its proven reputation and partnership with Aeolus, is likely to spearhead future renewable energy projects in Tunisia.