Tunisia: Agreements signed for two new solar power plants

Tunisia signs two agreements with foreign companies for the construction of solar power plants in Sidi Bouzid and Tozeur. These projects are part of the country's energy strategy to increase the share of renewable energies.

Share:

Tunisia is stepping up the development of its energy infrastructure with the signing of two new agreements for the construction of solar power plants in Sidi Bouzid and Tozeur. These partnerships are part of the country’s long-term energy strategy, which aims to diversify its sources of electricity supply and reduce its dependence on fossil fuel imports.
The two photovoltaic power plants, each with a capacity of 50 megawatts, will be built in collaboration with the Norwegian company Scatec and the Japanese company Aeolus.
Commissioning is scheduled for next year, in line with Tunisia’s objectives to increase the share of renewable energies in its energy mix.
Total financing amounts to 79 million euros, covering all the facilities and infrastructure required for their implementation.

A structuring project for energy independence

These projects are part of a wider drive by the Tunisian government to improve its energy independence in the face of ever-increasing consumption.
Since 2010, Tunisia’s energy dependence has grown considerably.
It has risen from 5% to 50% of national consumption by 2022, according to World Bank figures.
This situation makes it necessary to accelerate investment in renewable energy sources, in particular to compensate for declining production of local oil and gas resources.
Tunisia’s energy strategy aims to achieve 35% of electricity production from renewable sources by 2030, and to further reduce this dependence on fossil fuels by 2050.
The Sidi Bouzid and Tozeur projects are part of a larger project comprising the Kairouan and Gafsa power plants, each with a capacity of 100 megawatts, and the Tataouine plant, which will have a capacity of 200 megawatts.

Economic and industrial outlook

The installation of these solar infrastructures in Tunisia should have a significant economic impact.
In addition to boosting the country’s electricity production capacity, these projects offer industrial opportunities and jobs, particularly during the construction phase.
They also represent an important step in the development of Tunisia’s renewable energy sector, positioning the country as a potential regional player in this sector.
Financing for these plants is largely provided by foreign partners.
The involvement of Scatec and Aeolus in these projects bears witness to the interest of international investors in Tunisia’s energy potential.
In the longer term, the success of these initiatives could encourage new collaborations, particularly with other international players in the energy sector.

Challenges in meeting the 2030 targets

Despite this progress, major challenges remain for Tunisia.
One of the main obstacles is the country’s ability to rapidly develop infrastructure capable of meeting growing demand.
The energy transition process also requires regulatory and economic adjustments to facilitate the integration of renewable energies into the national grid.
In addition, improving energy efficiency remains crucial to the success of the 2030 objectives.
This calls for sectoral reforms, as well as better coordination between public and private players.
The implementation of solar projects, such as those in Sidi Bouzid and Tozeur, therefore represents a crucial step in this transition, but further efforts will be needed to achieve the targets set.

Savion, a Shell subsidiary, transfers majority ownership of five solar projects to Tango Holdings, 80% owned by Ares, to optimise the U.S. renewable electricity production portfolio and improve the profitability of the oil group’s investments.
Investment fund KKR is committing $335mn in a strategic partnership with CleanPeak Energy to accelerate the rollout of solar, storage and microgrid solutions aimed at Australian businesses.
Bluebird Solar is initiating a significant investment plan in Greater Noida to increase its production capacity to 2.5 GW and integrate automated lines powered by artificial intelligence.
TotalEnergies ENEOS has commissioned a 680-kilowatt photovoltaic facility at TechnipFMC’s Johor Bahru site, supplying 20% of the factory’s energy needs under an 18-year power purchase agreement.
Voltalia has been selected for the construction of two photovoltaic plants in Ireland, totalling 92.9 megawatts, further strengthening its presence in the country’s solar infrastructure market.
The latest report from the International Renewable Energy Agency confirms the cost superiority of renewables, but highlights persistent challenges for grid integration and access to financing in emerging markets.
EDP Renewables North America and California Water Service have entered into a 20-year agreement to supply solar energy to a strategic Bakersfield site, reducing grid energy costs by about $1.7mn over the contract duration.
Solar growth in the European Union is seeing its first annual contraction in ten years, following reduced subsidies and shifting budget priorities in several member states.
Scatec secures the development of a 846 MW photovoltaic cluster in the Free State province, with an investment of ZAR13bn ($735mn), following the seventh round of South Africa's REIPPPP programme.
Enbridge invests $0.9bn in a 600 MW solar facility in Texas, fully dedicated to powering Meta Platforms, Inc.'s data centres through a long-term power purchase agreement.
ENGIE has announced the acquisition of 22 distributed solar projects in Pennsylvania, further strengthening its renewable energy expansion strategy while supporting the local economy and enhancing the reliability of the distribution grid.
Estuary Power commissions the Escape Solar and Storage project in Nevada, integrating 185 megawatts of solar capacity and securing enhanced financing from institutional investors to supply electricity to several major players in the leisure sector.
New anti-dumping tariffs and Foreign Entity of Concern (FEOC) restrictions are disrupting the US solar supply chain, while ongoing dependence on China exposes the industry to significant risks, according to Wood Mackenzie.
Sri Lanka and the International Solar Alliance (ISA) have signed a strategic partnership to accelerate solar energy deployment in the country, aiming for 70% renewable energy by 2030.
Sunrun announced the pricing of its $431 million securitization, involving leases and power purchase agreements. This marks the company’s 14th public securitization and its third of 2025.
Resalta has completed the acquisition of Statkraft’s Croatian platform, expanding its presence in renewable energy across Eastern Europe, with a portfolio of projects and a full local team.
Gaia Renewables 1 has acquired a 10% stake in two solar power plants in the Northern Cape, following regulatory approval and financial close, strengthening its portfolio of independent assets.
Dutch firm Gutami Holding has signed a 25-year agreement with Burkina Faso and national utility SONABEL for a 150 MW solar project with 50 MW storage, valued at over €100mn ($109mn).
SOFAZ acquires 49% of a 14-plant solar portfolio held by Enfinity Global in Lazio and Emilia-Romagna, reinforcing its long-term stable investment strategy.
Entech spent €1.4mn to acquire a portfolio of photovoltaic projects under development across southern and central France, marking a first move in its external growth strategy following a recent capital increase.