Norway-based renewable energy company Scatec announced on Wednesday that it has reached financial close for the 120-megawatt (MW) Sidi Bouzid II solar power plant in Tunisia, its third renewable energy project in the North African country to enter the construction phase.

The €96 million ($110.53 million) project is being developed through an equally-owned partnership between Scatec and Aeolus SAS (Aeolus), part of the Japanese conglomerate Toyota Tsusho Group, the company said in a press statement.

The project is expected to reach commercial operation in the second half of 2027. Once operational, the plant is expected to generate 276 GWh of electricity and reduce CO2 emissions by nearly 107,000 tonnes annually.

Project finance

Scatec said Sidi Bouzid II will be financed by a combination of non-recourse debt and equity, with a leverage of approximately 70 percent.

The senior lenders for the projects are the European Bank of Reconstruction and Development (EBRD) and European Investment Bank (EIB). Sidi Bouzid II is supported by grant funding from the EU Neighbourhood Investment Platform (NIP) and guarantees from the European Fund for Sustainable Development Plus (EFSD+).

A 25-year Power Purchase Agreement (PPA) for the project was signed with state utility Société Tunisienne de l'Electricité et du Gaz (STEG) in March 2025.

Scatec was awarded the project in December 2024 through a government tender.

Tunisia portfolio

The 60 MW Sidi Bouzid I solar plant had reached commercial operations in March 2026, while the 60 MW Tozeur solar plant had commenced operations in April 2026. Both projects were developed in partnership with Aeolus.

In January 2026, Scatec was awarded a 25-year PPA for the 120 MW Tataouine solar power plant. The $92 million project is expected to reach financial close in the first half of 2027, Scatec had annouced that month.

The Norwegian company is an equal partner with Aeolus in the 75 MW El Fahs onshore wind power project, which is expected to reach financial close in first half of 2027. 

Tunisia aims to generate 35 percent of its electricity from renewable sources by 2030. Currently, 95 percent of electricity generation in the country is powered by natural gas of which more than 60 percent is imported.

(Writing by Anoop Menon; Editing by SA Kader)

(anoop.menon@lseg.com)

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