Scatec has signed a 25-year power purchase agreement (PPA) with Tunisia’s state utility, Société Tunisienne de l’Electricité et du Gaz (STEG), to develop its 120MW Sidi Bouzid II solar plant.
The agreement, awarded through a government tender in December 2024, supports Tunisia’s push for renewable energy and strengthens the country’s energy security.
Tunisia aims to generate 30% of its electricity from renewable sources by 2030 to lower emissions and reduce energy costs.
Since gas currently powers most of Tunisia’s electricity, with half of it imported, expanding renewable capacity has become a pressing priority.
To meet these goals, Tunisian authorities plan to launch additional solar and wind energy auctions.
Scatec has also partnered with Aeolus, a Toyota Tsusho Group subsidiary, by signing a joint development agreement for the Sidi Bouzid II project.
Both Scatec and Aeolus will each own 50% of the project, with Scatec managing engineering, procurement, and construction.
This agreement builds on their existing collaboration in Tunisia, where they are already developing the 60MW Sidi Bouzid I and 60MW Tozeur solar projects.
The Sidi Bouzid II project requires an estimated €87 million ($94.1 million) in capital expenditure, with Scatec covering 85% of the costs.
Scatec is in talks with financial institutions to secure debt financing, with the final structure set to be revealed by the second half of 2025 upon financial close.
Scatec CEO Terje Pilskog emphasized that this agreement marks a key milestone for the company in Tunisia, reinforcing its partnership with Aeolus and advancing the region’s renewable energy transition.
He highlighted Tunisia’s heavy reliance on gas imports, stressing that projects like Sidi Bouzid II are crucial for diversifying the energy mix and meeting the country’s renewable energy targets.
In March 2025, Scatec also signed a 25-year PPA with Egypt Aluminium to develop a 1.1GW solar photovoltaic plant and a 100MW/200MWh battery energy storage system in Egypt.
source: power-technology.com
