Scatec ASA, a leading renewable energy provider, and Aeolus SA, a subsidiary of the Japanese conglomerate Toyota Tsusho Group, have entered into a strategic partnership to develop and own renewable energy projects in Tunisia. The partnership has achieved financial close for the 120 MW Sidi Bouzid and Tozeur solar projects, each with a capacity of 60 MW. Scatec will now commence construction on these projects.
The projects are part of a larger agreement wherein Scatec was awarded 20-year power purchase agreements (PPAs) in 2019, with options for a 10-year extension, by the Tunisian state utility Société Tunisienne de l’Electricité et du Gaz (STEG). Under the new partnership, Aeolus has acquired a 49% stake in the projects, with Scatec retaining the remaining 51%. The projects have also been selected for the Financing Programme for Joint Crediting Mechanism (JCM) Model Projects in FY2023 by the Japanese Ministry of the Environment.
The total estimated cost for the projects is EUR 79 million, with financing secured through a combination of non-recourse project finance debt, concessional loans, and equity from the partners. Japanese carbon credit funding, received post-commercial operation date (COD), will reduce the equity funding requirement to approximately 15%.
Scatec will provide Engineering, Procurement & Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services, covering about 84% of the project’s capex.
The senior lenders for the projects include the European Bank of Reconstruction and Development (EBRD) and Société de Promotion et de Participation pour la Coopération Economique (Proparco). Concessional financing is provided by the Clean Technology Fund and the Global Environment Facility.
Scatec CEO Terje Pilskog expressed enthusiasm about the partnership, stating, “We are excited to welcome Toyota Tsusho – Aeolus on board for these significant projects in Tunisia. We appreciate their support and trust in Scatec as we move forward with construction. This collaboration underscores our ability to structure successful projects and secure the necessary financing to drive the green transition.”
Aeolus CEO Hideharu Toba added, “We are pleased to partner with Scatec on these inaugural projects for Aeolus since our establishment in March 2024. We value the support of Scatec and the efforts of the governments of Tunisia and Japan, as well as all involved stakeholders. Aeolus is committed to advancing renewable energy in Tunisia and other African nations.”
Nandita Parshad, Managing Director of the Sustainable Infrastructure Group at EBRD, noted, “We are proud to collaborate with Scatec and Aeolus on these solar projects in Tunisia. This partnership, supported by Proparco, the Clean Technology Fund, and the Global Environment Facility, highlights our commitment to advancing Tunisia’s renewable energy sector.”
Françoise Lombard, CEO at Proparco, stated, “We are delighted to strengthen our relationship with Scatec and Toyota Tsusho Group. The Sidi Bouzid and Tozeur projects are vital to Tunisia’s goal of increasing its renewable energy share to 35% by 2030. These projects represent significant investment opportunities for Tunisia’s energy future.”
The Tunisian government aims to achieve a 35% renewable energy share in its energy mix by 2030 and is actively supporting this goal through an attractive renewable energy tender program. The partnership is committed to contributing to this ambitious target and accelerating the integration of renewable energy in Tunisia.
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