Source: energynews.pro
Norwegian developer Scatec ASA has announced reaching financial close on the Sidi Bouzid II solar plant, with a capacity of 120 MW, in Tunisia. The project is being developed in partnership with Aeolus SAS, a subsidiary of Japanese conglomerate Toyota Tsusho Group. The power purchase agreement (PPA) was awarded in December 2024 through a government tender designed to support Tunisia's renewable energy targets. This marks Scatec's third project to start construction in the country, amid comparable moves across global solar markets, such as the 155 MW solar PPA signed by RWE and Google in Oklahoma.
A third plant for Scatec in Tunisia
Terje Pilskog, chief executive officer of Scatec, said Sidi Bouzid II strengthens the group's partnership with Aeolus and its position in Tunisia, a market he considers to have strong fundamentals for renewables and significant growth potential. According to him, the project demonstrates the company's ability to scale its business through repeatable tender-based opportunities, backed by a strong partnership with Aeolus and a capital-light execution model.
A Tunisian power mix dominated by imported gas
In Tunisia, 95% of electricity generation currently relies on natural gas, of which more than 60% is imported, according to Scatec. The country has set a target of 35% of power generation from renewable sources by 2030, with renewables helping to both reduce generation costs and strengthen energy independence. The Sidi Bouzid II plant is expected to generate 276 GWh of electricity annually and cut CO2 emissions by nearly 107,000 tonnes each year.
Financing backed by European lenders
Total capital expenditure for the project is estimated at 96 million euros, financed through a combination of non-recourse debt and equity, with leverage of approximately 70%. Scatec will own 50% of the project, with Aeolus holding the remaining 50%. The senior lenders are the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The project is also supported by grant funding from the EU Neighbourhood Investment Platform (NIP) and guarantees from the European Fund for Sustainable Development Plus (EFSD+).
Commercial operation expected in the second half of 2027
Scatec will provide engineering, procurement and construction (EPC) services, as well as asset management and operations and maintenance for the site, with an EPC scope covering approximately 75% of total project capex. Commercial operation of Sidi Bouzid II is expected in the second half of 2027. Other solar markets are showing contrasting dynamics, as illustrated by the stalling of commercial solar rollout in Australia despite 86 GW of potential.
