Since the end of 2016, the Tunisian government has embarked on the implementation of its programme for development of electricity production from renewables. In this framework the Ministry of Industry and SMEs launched an international tender for solar PV projects in 2019 with a total capacity of 500MWac.

Tunisia is committed to reaching 30% renewable energy by 2030 to reduce emissions, cut costs, and increase energy security. With 97% of electricity production currently derived from gas, of which approximately half is imported, Tunisia has an urgent need for additional renewable energy generation. To meet this demand, the authorities are planning further solar and wind auctions in the years to come.

In 2019, Scatec was awarded 20-year PPAs, with options for 10-year extension, with the Tunisian state utility STEG for the two solar projects totalling 120 MW.

Scatec will own 51% of the equity in the project, with Aeolus, part of the Japanese conglomerate Toyota Tsusho Group owning the remaining 49%. Scatec will be the EPC, AM and O&M provider to the power plants. With Aeolus’s participation, this project has been selected by Ministry of the Environment in Japan  for Japanese carbon credit funding, which will be received post commercial operation date, and will effectively reduce the equity partners funding need to approximately 15%.

Scatec ASA signed a 25-year Power Purchase Agreement (PPA) with Tunisian state utility Société Tunisienne de l’Electricité et du Gaz (STEG) in December 2024, won through a government tender.

Scatec has further signed a Joint Development Agreement, with Aeolus SAS (Aeolus), part of the Japanese conglomerate Toyota Tsusho Group, for the project. The agreement enhances the partners’ collaboration in Tunisia, building on the success of the 60 MW Sidi Bouzid I and 60 MW Tozeur solar projects currently under construction. Scatec will own 50% of the Sidi Bouzid II project, while Aeolus will own 50%.