Sidi Bouzid 2 Solar Project

The Sidi Bouzid 2 Solar Project is a utility-scale renewable energy development in central Tunisia involving construction and operation of a 120 MWp solar photovoltaic power plant, together with the associated transmission infrastructure.¹ The project is located in the Sidi Bouzid region and is being developed under a government-tendered power purchase agreement, contributing to Tunisia’s national renewable energy expansion program.²

The project’s vision is to accelerate the deployment of clean energy in Tunisia by increasing the share of renewable electricity in the national power mix. It directly supports Tunisia’s target of achieving 35 percent renewable electricity generation by 2030, while strengthening energy security and reducing dependence on fossil fuels.^{3 4} The project also aligns with international climate-action objectives focused on mitigation and environmental sustainability.⁵

The Sidi Bouzid 2 Solar Project is through Tunisia’s IPP renewable energy framework, following a competitive government tender concluded in December 2024. Electricity output will be sold under a 25-year Power Purchase Agreement (PPA) with the national utility Société Tunisienne de l’Électricité et du Gaz (STEG), integrating the plant into the national transmission system.⁶

The Sidi Bouzid 2 Solar Project integrates solar power generation with grid-ready infrastructure to deliver sustainable electricity in central Tunisia. Key components include:^{7 8}

• Solar photovoltaic plant: construction and operation of a 120 MWp utility-scale solar PV facility in the Sidi Bouzid region.
• Transmission Infrastructure: grid connection facilities enabling evacuation of generated electricity to the national power network.

The project supports greenhouse-gas emissions reduction by displacing fossil-fuel-based generation and lowering associated air pollutants such as SO₂ and NOₓ. By expanding renewable capacity, it contributes to climate mitigation, long-term energy cost stability, and enhanced resilience of Tunisia’s power system, while reinforcing EU-Tunisia cooperation on sustainable energy development. ⁹

The project is developed and owned by Scatec ASA and Aeolus SAS, a subsidiary of the Japanese Toyota Tsusho Group, each holding a 50 percent equity stake, with Scatec designated as the engineering, procurement and construction (EPC) provider.¹⁰ Financing is proposed from the European Investment Bank (EIB) under its climate and sustainable development mandate, with an expected contribution of approximately EUR 34 million toward the project’s EUR 81 million budget, supported by the Global Europe NDICI / EFSD+ Guarantee.¹¹ The Government of Tunisia acts as sovereign host, with STEG is the off-taker.¹²

Following award in December 2024, the Sidi Bouzid 2 Solar Project has entered the development phase. Upon implementation, it is expected to become a significant component pf Tunisia’s renewable energy portfolio, supporting national climate targets and reinforcing Tunisia’s transition toward a more diversified and sustainable electricity system. ^{13 14}