Scatec, the Norway-headquartered global renewable energy company and Aeolus SA, a subsidiary of Toyota Tsusho Group, have formed a strategic partnership to develop and own renewable energy projects in Tunisia.

The collaboration has already yielded results, with the successful financial close of the Sidi Bouzid and Tozeur solar projects of 60 megawatts (MW) each, Scatec said in a press statement.

The statement said Scatec will now commence construction on the two solar plants, having secured 20-year power purchase agreements (PPAs) with the Tunisian state utility, STEG, in 2019.

Aeolus has acquired a 49 percent stake in the projects, while Scatec retains a majority 51 percent ownership. Scatec will assume responsibility for EPC, asset management, and O&M services, contributing approximately 84 percent of the total capex.

The statement said the project has been selected for Japan’s environment ministry for Joint Crediting Mechanism (JCM) Model Projects programme, thanks to Aeolus’s involvement.

With a total project cost of 79 million Euros, the projects will be financed through a combination of non-recourse project finance debt, concessional loans, and equity contributions from the partners. The Japanese carbon credit funding, expected post-commercial operation date (COD), will significantly reduce the equity requirement to approximately 15 percent.

The European Bank for Reconstruction and Development (EBRD) and Proparco are the senior lenders for the projects, with additional concessional financing from the Clean Technology Fund and the Global Environment Facility (GEF).

Tunisia has set an ambitious goal of increasing the share of renewable energy in the country’s power generation mix to 35 percent by 2030.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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