Scatec ASA, a renewable energy solutions provider, has been awarded a 25-year Power Purchase Agreement (PPA) by Tunisia’s state-owned utility Société Tunisienne de l’Electricité et du Gaz (STEG) for the development of a 120 MW solar power plant in Tataouine, Tunisia.
The PPA was secured through a government tender aimed at supporting Tunisia’s renewable energy targets and strengthening the country’s energy security.
Commenting on the development, Terje Pilskog, CEO of Scatec, said that the Tataouine project reinforces the company’s presence in Tunisia and reflects its ability to scale through repeatable, high-quality opportunities in key growth markets. He added that the project’s long-term contracted revenues and capital-efficient development model align with Scatec’s strategy of achieving profitable, self-funded growth.
The total capital expenditure (capex) for the project is estimated at EUR 80 million and will be financed through a combination of non-recourse debt and equity. Scatec currently holds 100% ownership of the project and plans to invite equity partners to reduce its ownership stake. The company is also in discussions with selected financial institutions for project debt financing.
The complete financing structure is expected to be finalised at financial close, anticipated in the first half of 2027.
Under the project structure, Scatec will serve as the Engineering, Procurement and Construction (EPC) contractor, with the EPC scope accounting for approximately 80% of the total capex. The company will also provide Asset Management (AM) as well as Operations and Maintenance (O&M) services once the solar plant becomes operational.
Subscribe to get the latest posts sent to your email.
