Scatec ASA and Aeolus SAS, part of the Japanese conglomerate Toyota Tsusho Group, have signed a partnership agreement to jointly develop and own renewable energy projects in Tunisia. In parallel, financial close has been achieved for the 120 MW Sidi Bouzid and Tozeur solar projects (each 60 MW), which are part of the partnership agreement. Scatec will now start construction of the projects.
In 2019, Scatec was awarded 20-year power purchase agreements (PPA), with options for 10-year extension, with the Tunisian state utility Société Tunisienne de l’Electricité et du Gaz (STEG). As part of the partnership agreement Aeolus has acquired 49% of the projects with Scatec holding the remaining 51%. With Aeolus’s participation, this project has been selected by Ministry of the Environment, Japan for Financing Program for Joint Crediting Mechanism (JCM) Model Projects in FY2023.
The total project cost (capex) is estimated at EUR 79 million and will be financed by non-recourse project finance debt, concessional loans and equity from the partners. The Japanese carbon credit funding, which will be received post commercial operation date (COD), will effectively reduce the equity partners funding need to approximately 15 percent.
Scatec will provide Engineering, Procurement & Construction (EPC), Asset Management (AM) and Operations & Maintenance (O&M) services with an EPC scope of approximately 84% of capex.
The senior Lenders for the projects are the European Bank of Reconstruction and Development (EBRD) and Société de Promotion et de Participation pour la Coopération Economique (Proparco), with concessional financing provided by the Clean Technology Fund and the Global Environment Facility.
“We are excited to welcome Toyota Tsusho – Aeolus on board for the development of our projects in Tunisia. We would like to thank Toyota Tsusho Group’s management for their support and trust in Scatec and are looking forward to embarking on the construction phase of the two projects. The partnership highlights our track record in structuring projects, securing strong partners, and obtaining the necessary financing to drive profitable renewable energy projects forward. We would like to thank our key lending partners and the Government of Tunisia and Japan for their support and drive of the green transition in the region,” says Scatec CEO Terje Pilskog.
“We are delighted to have partnered with Scatec on these projects. We extend our gratitude to Scatec for their persistent efforts over the years and their trust in us. These projects mark Aeolus’s first commemorative investment since our establishment in March 2024. We are also grateful for the cooperation and efforts of the governments of Tunisia and Japan, as well as the lenders, advisors and the everyone involved in bringing these projects to fruition. Aeolus remains committed to contributing to the development of Tunisia and other African countries through renewable energy projects,” says Aeolus CEO Hideharu Toba.
“We are proud to partner with Scatec and Aeolus – Toyota Tsusho Group on their first utility-scale solar projects in Tunisia. These projects, cofinanced with our long-standing partners Proparco, the Clean Technology Fund and the Global Environment Facility, are a testament to the sponsors’ commitment to support the development of Tunisia’s renewable energy sector,” says Nandita Parshad, Managing Director Sustainable Infrastructure Group EBRD.
“We are very proud to strengthen our long-term relationship with Scatec, a key player in the renewable energy sector across emerging markets, and to join forces with Aeolus – Toyota Tsusho Group, as both are now jointly engaged in the Sidi Bouzid and Tozeur solar projects that we have supported from the inception,” said Françoise Lombard, CEO at Proparco. “The entire Agence Française de Développement Group, including Proparco, remains committed to the Tunisian authorities’ ambitious goal of increasing the share of renewable energy in the country’s power generation mix to 35% by 2030. The two projects are paving the way for many other high-impact investment opportunities in Tunisia.”
The Government of Tunisia has an ambition to increase the renewable energy share to 35% of the country’s energy mix by 2030 and is running an attractive renewable energy tender program to support this target. The partnership agreement outlines a joint ambition to participate in the program to accelerate access of renewables in the country.