Norwegian renewable energy giant, Scatec ASA, said today that it has signed a power deal with Tunisian state utility, Societe Tunisienne de l’Electricite et du Gaz (STEG), for a 120-MW solar power project in the country that it will develop in partnership with a unit of Toyota Tsusho Corp.
In a recent statement by Scatec, the company said the power purchase agreement (PPA) will run for 25 years and will concern the Sidi Bouzid II project and was awarded in December through a government tender.
The firm also noted in the press statement that it has signed a joint development agreement with Toyota Tsusho’s Aeolus SAS (Aeolus), expanding their collaboration.
The companies are already working together on the 60-MW Sidi Bouzid I and 60-MW Tozeur solar projects currently under construction.
Scatec’s Chief Executive Officer (CEO), Terje Pilskog, said “This agreement marks a significant milestone for Scatec in Tunisia, reinforcing our collaboration with Aeolus and our commitment to driving the renewable energy transition in the region.
“Tunisia depends significantly on gas imports, making projects like this essential for diversifying the energy mix and achieving the country’s ambitious renewable energy goals”.
Under the agreement, Scatec will own 50% of the Sidi Bouzid II project, while Aeolus will own 50%.
The estimated total capital expenditure (capex) for the project is €87 million and Scatec will be the designated engineering procurement and construction (EPC) provider with an EPC share of approximately 85% of capex.
The Nordic firm is currently in talks with selected financial institutions for debt financing of the project.
Sidi Bouzid II is expected to achieve financial close in the second half of 2025.
Scatec’s Africa footprint
The Nordic energy company has had Africa in its sights for renewable energy investment.
One such investment is the 60 MW phase of the 120 MW Mmadinare Solar Complex in Botswana which is currently under construction after reaching financial close in December, 2024.
Before this porject, Scatec announced in September of 2024 signing a 25-year PPA for a 1 GW solar array and a 100 MW/200 MWh battery storage project in Egypt.
Also, the South African government awarded Scatec ASA a contract to build one of its green energy projects as part of the country’s green energy transition.
