Summary:

On 23 January 2026, Scatec ASA secured a 25-year Power Purchase Agreement with Tunisia’s state utility STEG for a 120 MW solar power plant in Tataouine, awarded through a government tender aimed at advancing Tunisia’s renewable energy capacity and strengthening energy security.  

The project, with an estimated investment of EUR 80 million, will be financed through a combination of non-recourse debt and equity, with Scatec initially holding full ownership before bringing in equity partners. 

Scatec will act as the engineering, procurement and construction contractor, covering around 80% of the project’s capital expenditure, and will also provide asset management as well as operations and maintenance services once the plant becomes operational. 

Outlook: 

While the agreement highlights Tunisia’s attractiveness to foreign investors in renewable energy, particularly solar projects supported by the infrastructure and geographic advantages of the southern regions, it also underscores the country’s reliance on external capital to advance the sector amid persistent energy constraints and financial pressures facing STEG.  

The project will bolster installed solar capacity, reducing reliance on conventional energy sources, including Algerian gas, and easing pressure on public electricity generation over the medium term. 

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