Scatec Establishes 25-Year Solar Energy Partnership in Tunisia
Strategic 25-Year Power Purchase Agreement in Tunisia
Scatec ASA, a front-runner in renewable energy solutions, has recently secured a significant 25-year Power Purchase Agreement (PPA) with the Tunisian state utility, Société Tunisienne de l'Electricité et du Gaz (STEG). This agreement is for a new 120 MW solar power plant, known as Sidi Bouzid II, which aims to support Tunisia’s ambitious renewable energy targets and bolster energy security.
Collaborative Efforts in Renewable Energy Development
In addition to the PPA, Scatec has established a Joint Development Agreement with Aeolus SAS, a member of the Toyota Tsusho Group. This strategic partnership enhances collaboration in Tunisia, building upon the prior successes of the Sidi Bouzid I and Tozeur solar projects, both currently under construction with a capacity of 60 MW each. With this new project, Scatec will hold a 50% stake in Sidi Bouzid II, while Aeolus will own the remaining 50%.
Investment Details and Financial Structuring
The expected total capital expenditure for the Sidi Bouzid II project is approximately EUR 87 million, with Scatec designated as the EPC (Engineering, Procurement, and Construction) provider, taking on about 85% of the project's capex. As preparations move forward, Scatec is actively engaging with selected financial institutions to secure debt financing, and further details regarding the financing structure will be unveiled upon financial closure, anticipated in the latter part of 2025.
Transitioning Towards Renewable Energy Goals
Terje Pilskog, CEO of Scatec, expressed that this agreement marks a pivotal moment for the company in Tunisia, stating, "Our collaboration with Aeolus emphasizes our commitment to advancing the renewable energy transition in the region." Tunisia is reliant on gas imports for energy needs, making such projects crucial for diversifying its energy sources and achieving set renewable energy targets.
Tunisia's Renewable Energy Aspirations
Tunisia has set a goal of achieving 30% of its energy from renewable sources by 2030. Currently, around 97% of its electricity production is dependent on gas, half of which is imported. This heavy reliance underscores the urgent need for increased alternative energy production. To address this, the country’s authorities are planning additional solar and wind energy auctions in the upcoming years. Scatec is poised to continue exploring Tunisia's abundant renewables market, utilizing its partnership with Aeolus and the fully integrated business model.
Contact Information for Scatec ASA
For further inquiries regarding investment or analyst relations, please reach out to: Andreas Austrell, VP of Investor Relations. He can be contacted via email at andreas.austrell@scatec.com or by phone at +47 974 38 686.
For media-related questions, please contact Meera Bhatia, SVP of External Affairs & Communications, at meera.bhatia@scatec.com or call +47 468 44 959.
About Scatec
Scatec stands as a leading provider of renewable energy solutions, devoted to improving access to reliable and affordable clean energy in emerging markets. With a presence on five continents, Scatec develops, builds, owns, and operates renewable energy plants, currently boasting 4.8 GW either in operation or under construction. The company is firmly committed to enhancing its renewable energy capacity, driven by its passionate workforce and partners united by a vision of 'Improving our Future'. Headquartered in Oslo, Norway, Scatec is publicly traded on the Oslo Stock Exchange as 'SCATC'.
Frequently Asked Questions
What is the purpose of the new solar plant in Tunisia?
The solar plant aims to help Tunisia achieve its renewable energy targets and enhance energy security by diversifying energy sources.
Who are the partners involved in the project?
The project is a collaboration between Scatec ASA and Aeolus SAS, with each company owning a 50% stake.
What is the estimated cost of the Sidi Bouzid II project?
The estimated total capital expenditure for the project is approximately EUR 87 million.
When is the financial closing expected to occur?
The financial closing for the project is expected in the second half of 2025.
What is Scatec's commitment to renewable energy?
Scatec is committed to developing renewable energy sources to improve access to clean energy, with significant investments and partnerships worldwide.
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