Scatec is doubling down on its North African ambitions, securing a monumental 25-year power purchase agreement (PPA) with Tunisia’s state utility, Société Tunisienne de l’Electricité et du Gaz (STEG). The deal, inked for the 120MW Sidi Bouzid II solar power plant, is a clear signal of Tunisia’s commitment to its renewable energy goals and a significant step towards enhancing the nation’s energy security. This project, part of a government tender awarded in December 2024, is set to play a pivotal role in Tunisia’s ambitious plan to achieve 30% renewable energy by 2030, a target aimed at slashing emissions and reducing energy costs.
Tunisia’s energy landscape is ripe for disruption. Currently, most of its electricity is generated from gas, with half of that gas being imported. This heavy reliance on imports makes the country vulnerable to global gas price fluctuations and supply disruptions. The Sidi Bouzid II project, therefore, is not just about adding renewable energy capacity; it’s about fortifying Tunisia’s energy independence.
Scatec isn’t going it alone. The company has teamed up with Aeolus, a subsidiary of the Toyota Tsusho Group, for the Sidi Bouzid II project. Both parties will hold an equal 50% ownership stake, with Scatec leading the engineering, procurement, and construction. This partnership builds on their existing collaboration in Tunisia, where they are already developing the 60MW Sidi Bouzid I and 60MW Tozeur solar projects. The estimated capital expenditure for Sidi Bouzid II stands at €87m ($94.1m), with Scatec shouldering 85% of the project’s capital expenditure. Scatec is now in talks with financial institutions to secure the necessary debt financing, with the full finance structure expected to be announced upon financial close in the second half of 2025.
Scatec CEO Terje Pilskog didn’t mince words about the significance of the project. “This agreement marks a significant milestone for Scatec in Tunisia,” he stated, emphasizing the company’s commitment to driving the renewable energy transition in the region. Pilskog also highlighted Tunisia’s heavy reliance on gas imports, underscoring the urgency of projects like Sidi Bouzid II in diversifying the energy mix and achieving the country’s renewable energy goals.
But Scatec’s ambitions aren’t confined to Tunisia. In March 2025, the company signed a 25-year PPA with Egypt Aluminium for a 1.1GW solar photovoltaic and 100MW/200 megawatt hours Battery Energy Storage System (BESS) project in Egypt. This project, one of the largest of its kind in the region, further cements Scatec’s position as a key player in North Africa’s renewable energy landscape.
The Sidi Bouzid II project is more than just a business deal; it’s a testament to Tunisia’s resolve to transition to a more sustainable energy future. It’s a challenge to the status quo, a spark to ignite debate, and a catalyst for further development in the sector. As Tunisia plans additional solar and wind auctions, the stage is set for a renewable energy revolution. The question is, who will lead the charge? Scatec has certainly staked its claim, but the race is far from over. The energy sector is watching, and the world is waiting.
