Wedoany.com News, Recently, the Norwegian renewable energy solutions provider Scatec ASA announced that it has officially signed a 25-year Power Purchase Agreement (PPA) with the Tunisian state-owned utility company, Société Tunisienne de l'Électricité et du Gaz (STEG). The agreement is for the development and construction of a 120 MW solar power plant in the Tataouine Governorate in southern Tunisia.

The PPA was obtained through a government tender, aiming to support Tunisia's renewable energy development goals and enhance energy security. The total project investment is estimated at 80 million euros. Financing will be completed through a combination of non-recourse debt and equity. Scatec currently holds 100% equity in the project but plans to bring in partners to reduce its stake. Negotiations for project debt financing are also underway. The overall financing plan is expected to reach financial close in the first half of 2027. Scatec's CEO, Terje Pilskog, stated that with its long-term contracted revenue and efficient capital model, this project aligns with the company's strategy of profitable, self-financed growth. According to the agreement, Scatec will act as the Engineering, Procurement, and Construction (EPC) contractor for the project, responsible for approximately 80% of the capital expenditure work. It will also continue to provide asset management and operation and maintenance services after the plant is commissioned, highlighting its integrated "Develop-Build-Own-Operate" business model.