Renewable energy solutions provider Scatec has been awarded two separate wind and solar power purchase agreement (PPAs) with Tunisian State utility Société Tunisienne de l’Electricité et du Gaz (STEG), both from government tenders to support the country’s renewable-energy targets and enhance its energy security.

Scatec has been awarded a 25-year PPA with STEG for the El Fahs 75 MW wind power plant. 

The project will be developed in partnership with Aeolus, part of the Japanese conglomerate Toyota Tsusho Group.

El Fahs is Scatec’s first wind project in Tunisia and has a prime location with strong wind resources, supported by long-term high-quality wind data, the company points out.

It is aligned with Scatec’s strategy to build an onshore wind portfolio over time, it adds.

“The El Fahs wind project is a strategic milestone as we expand our presence in Tunisia and partnership with Aeolus, while broadening our technology footprint. With a strong partner, high-quality wind resources and long-term contracted revenues, this project reinforces our ability to grow profitably in attractive markets like Tunisia,” says Scatec CEO Terje Pilskog.

The total capital expenditure (capex) for the project is estimated at €100-million and will be financed through a combination of non-recourse debt and equity, with Scatec owning 50% of the project and Aeolus the remaining 50%.

Scatec is currently in dialogue with selected financial institutions for debt financing of the project and the total financing structure will be communicated at financial close which is expected in the first half of 2027.

Scatec will apply its integrated model and further information on the company’s scope of engineering, procurement and construction (EPC), asset management (AM) and operations and maintenance (O&M) services will be provided at financial close.

Further, Scatec has also been awarded a 25-year PPA with STEG for the Tataouine 120 MW solar power plant in the country.

The total capex for the project is estimated at €80-million and will be financed through a combination of non-recourse debt and equity. Scatec currently owns 100% of the project and will invite equity partners to reduce its ownership stake.

Scatec is also in dialogue with selected financial institutions for debt financing of this project. The total financing structure will be communicated at financial close which is expected in the first half of 2027.

Scatec will be the designated EPC provider with an EPC scope of about 80% of capex and will provide AM and O&M services once the plant is operational.

“Tataouine strengthens our platform in Tunisia and reflects our ability to scale through repeatable, high-quality opportunities in our growth markets. With long-term contracted revenues and a capital-efficient development model, this project supports our strategy for profitable, self-funded growth,” says Pilskog.