Norwegian independent power producer (IPP) Scatec has reached financial close for the 120MW Sidi Bouzid II solar PV project in Tunisia.
The project is being developed in partnership with Aeolus SAS, part of the Toyota Tsusho Group, with Scatec and Aeolus each holding a 50% ownership stake. The plant is under construction and is expected to enter commercial operation in the second half of 2027.
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Total capital expenditure for the project is estimated at €96 million (US$110 million) and will be financed through a combination of non-recourse debt and equity, with leverage of approximately 70%.
“Sidi Bouzid II is our third project starting construction in Tunisia and reinforces our partnership with Aeolus and our position in Tunisia, with strong fundamentals for renewables and strong growth potential. The project demonstrates our ability to scale our business through repeatable tender-based opportunities, backed by a strong partnership with Aeolus, and a capital-light execution model,” says Terje Pilskog, CEO of Scatec.
The project has secured financing from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), while additional support comes from grant funding provided through the EU Neighbourhood Investment Platform (NIP) and guarantees from the European Fund for Sustainable Development Plus (EFSD+).
Scatec will deliver engineering, procurement and construction (EPC), asset management and operations and maintenance (O&M) services for the project. The company’s EPC contract scope represents approximately 75% of the project’s total capex.
The project is backed by a 25-year power purchase agreement (PPA) with Tunisian state utility Société Tunisienne de l’Electricité et du Gaz (STEG).
Tunisia currently relies heavily on natural gas for electricity generation, with 95% of its power production sourced from the fuel and more than 60% of gas supplies imported. The country has set a target of sourcing 35% of its electricity generation from renewable energy by 2030 as it seeks to reduce generation costs and improve energy independence.
The Sidi Bouzid I solar plant, with a capacity of 60MW, reached commercial operation in March 2026.
