Renewable energy solutions provider Scatec has reached financial close and started construction on the 120-megawatt Sidi Bouzid II solar plant in Tunisia, marking its third project to break ground in the country and reinforcing its long-running partnership with Aeolus SAS, part of Japan’s Toyota Tsusho Group.
The power purchase agreement was awarded in December 2024 through a government tender designed to support Tunisia’s renewable energy targets and strengthen the country’s energy security. Terje Pilskog, CEO of Scatec, said the project demonstrates the company’s ability to scale its business through repeatable tender-based opportunities, backed by a strong partnership and a capital-light execution model.
Tunisia currently generates around 95% of its electricity from natural gas, more than 60% of which is imported, and the country has set a target of reaching 35% renewable generation by 2030. The Sidi Bouzid II project is expected to generate 276 gigawatt-hours of electricity annually and reduce carbon dioxide emissions by nearly 107,000 tonnes each year.
Total capital expenditure for the project is estimated at €96 million, financed through a combination of non-recourse debt and equity at a leverage of approximately 70%. Scatec and Aeolus will each own 50% of the project, with the European Bank for Reconstruction and Development and the European Investment Bank serving as senior lenders. The project is also supported by grant funding from the EU Neighbourhood Investment Platform and guarantees from the European Fund for Sustainable Development Plus.
Scatec will provide engineering, procurement and construction, asset management, and operations and maintenance services, with an EPC scope covering approximately 75% of capital expenditure. The project is expected to reach commercial operation in the second half of 2027.
Source: energy-pedia.com