- Scatec signed a 25-year PPA with Tunisia’s STEG for a 120 MW solar project in Sidi Bouzid as part of the country’s push towards renewable energy.
- Scatec and Japan’s Aeolus SAS, a Toyota Tsusho Group subsidiary, will jointly develop the project, requiring €87 million in capital expenditure.
- Tunisia aims for 30% renewable energy by 2030 and plans more solar and wind projects to reduce its reliance on imported natural gas.
Norwegian renewable energy developer Scatec ASA has signed a 25-year Power Purchase Agreement (PPA) with Société Tunisienne de l’Électricité et du Gaz (STEG) for a 120 MW solar power project in Sidi Bouzid. The government awarded the contract in December 2024 through a tender as part of Tunisia’s strategy to boost energy security and meet renewable targets.
In addition to the PPA, Scatec signed a Joint Development Agreement with Aeolus SAS, Japan’s Toyota Tsusho Group subsidiary. This partnership builds on the ongoing development of two other solar projects, the 60 MW Sidi Bouzid I and 60 MW Tozeur. Scatec and Aeolus will each hold a 50% stake in the Sidi Bouzid II project, which will require €87 million in total capital expenditure.
Scatec will lead the Engineering, Procurement, and Construction (EPC) phase, managing around 85% of the investment. The company is negotiating with financial institutions to secure debt financing. Scatec expects to reach financial closure by the second half of 2025.
Tunisia relies on natural gas for 97% of its electricity production, with nearly half of the supply coming from imports. Tunisia has accelerated its shift toward renewable energy in response to this dependency. The government aims to achieve 30% renewable energy by 2030 and plans to issue new tenders for solar and wind projects in the coming years.
Scatec has strengthened its presence in Tunisia’s renewable energy sector. The company sees the Sidi Bouzid II project as a strategic move to expand its role in Tunisia and support the country’s energy diversification. Scatec aims to capitalise on future opportunities by combining its business model with Aeolus’ expertise.
Both companies plan to leverage their partnership to increase renewable energy capacity in Tunisia. Scatec intends to navigate the local market using its integrated business model and pursue additional projects. By expanding its footprint, Scatec hopes to contribute to Tunisia’s energy transition and reduce its reliance on imported natural gas.
The Sidi Bouzid II solar project demonstrates Tunisia’s commitment to growing its renewable energy capacity. By collaborating with international developers like Scatec, the country aims to cut natural gas imports and increase its share of renewable energy. The project will play a significant role in helping Tunisia meet its 2030 renewable energy goals.
Scatec’s partnership with Aeolus also underscores the importance of international collaboration in driving renewable energy development. The company’s experience in solar power and EPC positions it to effectively lead the Sidi Bouzid II project.
With the new project, Scatec will contribute to North Africa’s renewable energy landscape and reinforce its regional position. This initiative supports Tunisia’s energy diversification efforts while advancing Scatec’s regional growth strategy.