Sidi Bouzid II Solar Plant: A €96 Million Milestone in Tunisia’s Renewable Energy Transition

The Sidi Bouzid II solar power plant, with a capacity of 120 megawatts (MW), sits at the heart of a strategic partnership between Norwegian energy group Scatec and Aeolus, a subsidiary of Japan’s Toyota Tsusho, in Tunisia. According to Scatec, the project has secured its financing, with construction commencing in June 2026. The total investment is estimated at €96 million. The group reaffirmed its strong interest in the Tunisian market during a high-level meeting with local authorities on October 20.

High-Level Strategic Dialogue

Led by Terje Pilskog, CEO of Scatec, the delegation was received by Salah Zouari, Minister of Equipment and Housing, who is also overseeing the Ministry of Industry, Mines, and Energy. The meeting was attended by Wael Chouchane, Secretary of State for Energy Transition, and representatives from the Tunisian Electricity and Gas Company (STEG).

Beyond the specifics of the Sidi Bouzid II plant, discussions covered:

• Ongoing and planned solar and wind projects.
• The integration of new technologies, particularly energy storage systems.
• Scatec’s and Aeolus’s intent to broaden their investment footprint in Tunisia.

Project Financials and Structure

Sidi Bouzid II is a key component of Scatec’s and Aeolus’s development strategy in the Tunisian market. Data published by Scatec on June 17, 2026, confirms the project’s €96 million financing package, structured through a mix of equity and debt.

Key Financial Partners:

• European Bank for Reconstruction and Development (EBRD)
• European Investment Bank (EIB)
• Additional support from various European guarantee and support mechanisms.

Ownership and Roles:

• 50/50 Joint Venture: Both partners hold equal stakes in the project.
• Scatec’s Responsibilities: Engineering, procurement, construction (EPC), and operation and maintenance (O&M) services.

Environmental and Economic Impact

The plant is expected to generate approximately 276 gigawatt-hours (GWh) of electricity annually. This output is estimated to prevent nearly 107,000 tonnes of CO₂ emissions per year, significantly contributing to Tunisia’s national power production and decarbonization goals.

Reducing Dependence on Imported Gas

The significance of this project extends beyond mere capacity expansion. For Tunisia, developing solar and wind energy is critical to:

1. Diversifying electricity sources.
2. Limiting exposure to volatile natural gas imports.

National Targets: Tunisian authorities aim to achieve a 35% share of renewable energy in the electricity mix by 2030.

Business Implications: For the private sector, this transition represents a major economic opportunity. Key factors influencing industrial competitiveness include:

• Availability of new production capacities.
• Energy cost stability.
• Security of supply.

Challenges and Future Outlook

Despite the clear benefits, the primary challenge remains execution. This involves:

• Realizing the announced investments on schedule.
• Developing the necessary electrical grid infrastructure.
• Integrating variable renewable energy sources into the national grid efficiently.

The October 20 meeting underscores the committed ambition of Scatec and Aeolus to continue their growth in Tunisia. To fully gauge the scale of this ambition, stakeholders will be watching the next steps, including project commissioning timelines and the concrete engagement of new investments.