Scatec has signed a 25-year power purchase agreement (PPA) with Tunisia’s state utility, Société Tunisienne de l’Électricité et du Gaz (STEG), to develop the 120MW Sidi Bouzid II solar plant.
This agreement, awarded through a government tender in December 2024, supports Tunisia’s renewable energy ambitions and bolsters the country’s energy security.
Tunisia aims to generate 30% of its electricity from renewable sources by 2030 as part of its strategy to lower emissions and reduce energy costs.
With the majority of Tunisia’s electricity currently powered by imported gas, expanding renewable energy capacity has become a critical priority for the country.
To meet these ambitious goals, Tunisian authorities plan to hold additional auctions for solar and wind energy projects.
Scatec has partnered with Aeolus, a subsidiary of Toyota Tsusho Group, by signing a joint development agreement for the Sidi Bouzid II project.
Both companies will own 50% of the project, with Scatec managing the engineering, procurement, and construction (EPC) process.
This partnership builds on their existing collaboration in Tunisia, where they are also developing the 60MW Sidi Bouzid I and 60MW Tozeur solar projects.
The total capital expenditure for the Sidi Bouzid II project is estimated at €87 million ($94.1 million), with Scatec covering 85% of the costs.
The company is currently in discussions with financial institutions to secure debt financing, with the final financing structure expected to be revealed by the second half of 2025 upon financial close.
Scatec CEO Terje Pilskog emphasized that this agreement represents a significant milestone for the company in Tunisia.
It strengthens the partnership with Aeolus and contributes to the region’s renewable energy transition. Pilskog stressed Tunisia’s heavy reliance on gas imports and noted that projects like Sidi Bouzid II are vital for diversifying the country’s energy mix and meeting its renewable energy targets.
In addition to the Sidi Bouzid II project, Scatec has also made strides in Egypt’s energy sector. In March 2025, the company signed a 25-year PPA with Egypt Aluminium to develop a 1.1GW solar photovoltaic plant and a 100MW/200MWh battery energy storage system.
