Scatec ASA has secured a 25-year Power Purchase Agreement (PPA) with Tunisia’s state-owned electricity utility, Société Tunisienne de l’Electricité et du Gaz (STEG), for the development of a 120 MW solar power plant in Tataouine, southern Tunisia.
The Norwegian renewable energy developer was awarded PPA through a government-led competitive tender designed to accelerate Tunisia’s renewable energy rollout and strengthen national energy security. Scatec CEO Terje Pilskog said the Tataouine project deepens the company’s footprint in Tunisia and demonstrates its ability to scale efficiently across core growth markets. He noted that the project’s long-term contracted revenues and capital-efficient structure are well aligned with Scatec’s strategy of delivering profitable, self-funded growth.
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Framework
The project is expected to require total capital investment of approximately US $948M , which will be financed through a mix of non-recourse debt and equity. Scatec currently holds 100% ownership of the project but plans to bring in equity partners to reduce its stake. Discussions with selected financial institutions for project debt financing are ongoing.
The final financing structure will be announced at financial close, which is targeted for the first half of 2027. Under the project framework, Scatec will act as the Engineering, Procurement and Construction (EPC) contractor, with EPC activities accounting for about 80% of total capex. The company will also deliver Asset Management, as well as Operations and Maintenance (O&M) services once the plant is commissioned.
Solar energy is becoming a central pillar of Tunisia’s energy transition as the country seeks to reduce its dependence on imported fossil fuels and strengthen energy security. Benefiting from high solar irradiation particularly in central and southern regions, Tunisia has significantly expanded its solar photovoltaic (PV) capacity in recent years, with several large-scale plants now operational and more under development. Solar power plays a key role in the national energy strategy, which targets around 35% of electricity generation from renewable sources by 2030.
