Renewable energy solutions provider Scatec has secured a 25-year power purchase agreement (PPA) with Tunisia’s state utility, Société Tunisienne de l’Electricité et du Gaz (STEG), for its 120MW Sidi Bouzid II solar power plant in Tunisia.
The agreement, part of a government tender awarded in December 2024, aims to support Tunisia’s renewable energy goals and enhance the nation’s energy security.
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Tunisia has committed to achieving 30% renewable energy by 2030 to lower emissions and cut costs.
With most of its electricity currently generated from gas, half of which is imported, there is an urgent need for additional renewable energy generation capacity.
In line with these objectives, Tunisian authorities are planning additional solar and wind auctions.
Scatec has also signed a joint development agreement with Aeolus, a subsidiary of the Toyota Tsusho Group, for the Sidi Bouzid II project.
Scatec and Aeolus will each hold a 50% ownership stake in the Sidi Bouzid II project, with Scatec as the engineering, procurement and construction provider.
The agreement builds on their existing partnership in Tunisia, where they are already developing the 60MW Sidi Bouzid I and 60MW Tozeur solar projects.
Estimated capital expenditure for the Sidi Bouzid II project stands at €87m ($94.1m), with Scatec taking on 85% of the project’s capital expenditure.
Scatec is engaging with financial institutions to secure debt financing for the project, with the full finance structure to be announced upon financial close, anticipated in the second half of 2025.
Scatec CEO Terje Pilskog stated: “This agreement marks a significant milestone for Scatec in Tunisia, re-inforcing 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.”
In March 2025, Scatec signed a 25-year PPA with Egypt Aluminium for a 1.1GW solar photovoltaic and 100MW/200 megawatt hours BESS project in Egypt.
