• €80M plant in Tataouine to boost energy security, reduce fuel imports
• Tunisia targets renewables growth from current 6% of electricity mix

Norwegian renewable energy company Scatec ASA said on Friday, Jan. 23, it had secured a contract with Tunisia’s state-owned utility, the Tunisian Electricity and Gas Company (STEG), for a 120-megawatt solar project.

Under the agreement, Scatec will sell the plant’s electricity output to STEG under a 25-year power purchase agreement. The project is located in Tataouine, in southern Tunisia.

The company said the project is valued at about 80 million euros ($95.1 million) and was awarded through a government-backed tender aimed at expanding renewable energy capacity.

Scatec currently owns 100% of the project and will oversee engineering, procurement and construction, as well as operations and maintenance once the plant becomes operational.

The project will be financed through a mix of non-recourse debt and equity. Scatec said it plans to bring in financial partners to reduce its stake and is in talks with several institutions to secure funding.

The announcement comes as Tunisia steps up efforts to strengthen energy security amid heavy reliance on imported fuels. In February 2025, the government unveiled new measures to boost electricity supply and cut fuel imports, notably by expanding domestic generation capacity.

As part of that push, Tunisia signed agreements in March for solar projects totaling 498 MW with Qair, Scatec and Voltalia.

Fossil fuels, mainly natural gas, account for more than 90% of Tunisia’s electricity generation, Scatec said. According to the latest energy outlook published by the Ministry of Industry, renewables accounted for 6% of electricity production at the end of November 2025.

Abdel-Latif Boureima