Norwegian independent power producer Scatec has secured a 25-year power purchase agreement with state utility the Société Tunisienne de l’Electricité et du Gaz for its 120MW Tataouine solar power plant in the North African country.
The firm will act as the project’s engineering, procurement and construction (EPC) contractor, and, once the plant is operational, also provide asset management and operations and maintenance (O&M) services.
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Terje Pilskog, CEO of Scatec, said that the project would strengthen the company’s platform in Tunisia. “With long-term contracted revenues and a capital-efficient development model, this project supports our strategy for profitable, self-funded growth,” Pilskog said.
With a total capital expenditure of EUR80 million (US$94 million), the project will be financed through non-recourse debt and equity. Scatec currently holds a 100% ownership of the project and plans to bring in equity partners to reduce its exposure. The company is also seeking additional debt financing, with the final capital structure to be confirmed at financial close, expected in the first half of 2027.
The Oslo-headquartered IPP has more than 3.5GW of installed renewable energy capacity across four continents and is continuing to expand its portfolio. As of November 2025, the company has secured a 4.4GW of solar capacity and a 1.3GW of battery storage capacity.
For the third quarter of 2025, Scatec reported development and construction (D&C) revenues of NOK1.76 billion (US$175.1 million), surpassing power production revenues for the first time since Q3 2023. Egypt remained the company’s largest market by project pipeline in its solar and storage portfolio.
Recently, Scatec signed a PPA for 1.95GW of solar PV and 3.9GWh of battery energy storage capacity in Egypt. Under the agreement with the Egyptian Electricity Transmission Company (EETC), the company agreed to develop an integrated solar-plus-storage hybrid system providing baseload power, alongside two standalone BESS projects delivering grid support services.
The 25-year, pay-as-produced PPA is structured to remunerate Scatec based on output from the hybrid plant, which the company said is expected to generate around 6,000GWh of electricity per year.
