en.Wedoany.com Reported - Norwegian independent power producer (IPP) Scatec has announced the financial close of its 120-megawatt Sidi Bouzid II solar photovoltaic project in Tunisia. The project is developed in partnership with Aeolus SAS, a subsidiary of Toyota Tsusho Group, with each party holding a 50% ownership stake. The plant is currently under construction and is expected to commence commercial operations in the second half of 2027.
The total capital expenditure for the project is estimated at €96 million (approximately $110 million), financed through a combination of non-recourse debt and equity, with a leverage ratio of around 70%. Financing parties include the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), in addition to grant funding from the EU Neighborhood Investment Platform (NIP) and guarantee support from the European Fund for Sustainable Development Plus (EFSD+).
Scatec CEO Terje Pilskog stated that Sidi Bouzid II is the third project the company has initiated construction on in Tunisia, solidifying its partnership with Aeolus and strengthening its position in the Tunisian market. The country has a solid renewable energy foundation with significant growth potential, and this project demonstrates the company's ability to scale its business through repeatable tender opportunities, thanks to strong collaboration with Aeolus and a light-asset execution model.
Scatec will be responsible for the project's engineering, procurement, and construction (EPC), asset management, as well as operations and maintenance (O&M) services. The scope of its EPC contract accounts for approximately 75% of the project's total capital expenditure. The project has signed a 25-year power purchase agreement (PPA) with Tunisia's state-owned electricity company, Société Tunisienne de l’Electricité et du Gaz (STEG).
Tunisia currently relies heavily on natural gas for power generation, with about 95% of its electricity coming from natural gas, and over 60% of its gas supply dependent on imports. The country has set a target of generating 35% of its electricity from renewable sources by 2030, aiming to reduce power generation costs and improve energy independence. The previously constructed 60-megawatt Sidi Bouzid I solar plant commenced commercial operations in March 2026.
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