Scatec Solar, a Norwegian company, has been awarded 360 MW of solar power projects in Tunisia. The company has been awarded the three projects following a tender floated by the Tunisian Ministry of Industry and SMEs earlier this year.
The three projects of 60 MW, 60 MW, and 240 MW are to be developed in Tozeur, Sidi Bouzid, and Tataouine regions, respectively.
Speaking on the latest development, CEO of Scatec Solar, said, “We are excited to secure our first project in Tunisia, supporting the government’s target to reach 30% of its electricity production from renewables by 2030. We have solid experience from the successful development, execution, and operation of projects in Africa and the Middle East over the years that we bring with us as we enter this new market.”
The company has signed a power purchase agreement (PPA) with the Société Tunisienne de l’Electricité et du Gaz (STEG) for 20 years. Once commissioned, the solar projects are expected to produce about 830 GWh of energy every year, which would be enough to power 3,00,000 Tunisian households, and it would also lead to a reduction of 4,80,000 tons of CO2 per year.
As per the company’s statement, Scatec Solar will be the lead equity investor in the project. The company will also be the engineering, procurement, and construction (EPC) provider and provide operation and maintenance as well as asset management services to the projects.
To meet the growing energy demand, Tunisia has been trying to harness renewable energy sources, and this latest move is a part of the country’s constant endeavor to increase the share of renewables in its energy mix.
The North African country has witnessed increased activity in the renewable energy sector lately.
Earlier this year, in a significant boost to the Tunisian renewable energy sector, African Development Board (AfDB) sanctioned €138 million (~$153.5 million) for the Tunisian Company of Energy and Gas (STEG) to develop an electricity transmission network. The project, which will incur a total cost of €290 million (~$323 million), is jointly financed by the Islamic Development Bank and STEG.
Last year, the International Finance Corporation (IFC), a member of the World Bank Group, had provided a €40 million (~$46.2 million) subordinated loan to Attijari bank Tunisia, which is a private bank and part of the Attijariwafa Bank Group. The loan was aimed at strengthening its capital base and grow its lending operations and increasing its volume of long-term financing for climate-related projects and smaller businesses.
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.