Scatec ASA and Aeolus SA, 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 Programme 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%. 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.