Scatec and Aeolus, part of Toyota Tsusho Group, join forces for Tunisia solar projects

Oslo, 5 August 2024: Scatec ASA, a leading renewable energy provider, and Aeolus SA, part of the Japanese conglomerate Toyota Tsusho Group, have signed a partnership agreement to jointly develop and own renewable energy projects in Tunisia. In parallel, financial close has been achieved for the 120 MW Sidi Bouzid and Tozeur solar projects (each 60 MW), which are part of the partnership agreement. Scatec will now start construction of the projects.

In 2019, Scatec was awarded 20-year power purchase agreements (PPA), with options for 10-year extension, with the Tunisian state utility Société Tunisienne de l'Electricité et du Gaz (STEG). As part of the partnership agreement Aeolus has acquired 49% of the projects with Scatec holding the remaining 51%. With Aeolus’s participation, this project has been selected by Ministry of the Environment, Japan for Financing Programme for Joint Crediting Mechanism (JCM) Model Projects in FY2023.

The total project cost (capex) is estimated at EUR 79 million and will be financed by non-recourse project finance debt, concessional loans and equity from the partners. The Japanese carbon credit funding, which will be received post commercial operation date (COD), will effectively reduce the equity partners funding need to approximately 15 percent.

Scatec will provide Engineering, Procurement & Construction (EPC), Asset Management (AM) and Operations & Maintenance (O&M) services with an EPC scope of approximately 84% of capex.

The senior Lenders for the projects are the European Bank of Reconstruction and Development (EBRD) and Société de Promotion et de Participation pour la Coopération Economique (Proparco), with concessional financing provided by the Clean Technology Fund and the Global Environment Facility.

“We are excited to welcome Toyota Tsusho – Aeolus on board for the development of our projects in Tunisia. We would like to thank Toyota Tsusho Group’s management for their support and trust in Scatec and are looking forward to embarking on the construction phase of the two projects. The partnership highlights our track record in structuring projects, securing strong partners, and obtaining the necessary financing to drive profitable renewable energy projects forward. We would like to thank our key lending partners and the Government of Tunisia and Japan for their support and drive of the green transition in the region," says Scatec CEO Terje Pilskog.

“We are delighted to have partnered with Scatec on these projects. We extend our gratitude to Scatec for their persistent efforts over the years and their trust in us. These projects mark Aeolus’s first commemorative investment since our establishment in March 2024. We are also grateful for the cooperation and efforts of the governments of Tunisia and Japan, as well as the lenders, advisors and the everyone involved in bringing these projects to fruition. Aeolus remains committed to contributing to the development of Tunisia and other African countries through renewable energy projects,” says Aeolus CEO Hideharu Toba.

“We are proud to partner with Scatec and Aeolus - Toyota Tsusho Group on their first utility-scale solar projects in Tunisia. These projects, cofinanced with our long-standing partners Proparco, the Clean Technology Fund and the Global Environment Facility, are a testament to the sponsors’ commitment to support the development of Tunisia’s renewable energy sector,” says Nandita Parshad, Managing Director Sustainable Infrastructure Group EBRD.

"We are very proud to strengthen our long-term relationship with Scatec, a key player in the renewable energy sector across emerging markets, and to join forces with Aeolus - Toyota Tsusho Group, as both are now jointly engaged in the Sidi Bouzid and Tozeur solar projects that we have supported from the inception," said Françoise Lombard, CEO at Proparco. “The entire Agence Française de Développement Group, including Proparco, remains committed to the Tunisian authorities' ambitious goal of increasing the share of renewable energy in the country's power generation mix to 35% by 2030. The two projects are paving the way for many other high-impact investment opportunities in Tunisia.”

The Government of Tunisia has an ambition to increase the renewable energy share to 35% of the country’s energy mix by 2030 and is running an attractive renewable energy tender programme to support this target. The partnership agreement outlines a joint ambition to participate in the programme to accelerate access of renewables in the country.

Notes to the editor:

Ministry of the Environment, Japan has been implementing the “JCM Model Projects,” which provides financial support covering a material portion of equipment and installation costs. The purpose of this model projects is to financially support the implementation of projects which reduce GHG emissions by utilizing leading decarbonizing technologies in developing countries, and in return, to acquire JCM credits for achievement of Japan’s GHG emission reduction and the partner countries' emission reduction target. This project is being implemented with the cooperation of the Tunisian and Japanese governments

For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, andreas.austrell@scatec.com For media: Meera Bhatia, SVP External Affairs & Communications, phone: +47 468 44 959, meera.bhatia@scatec.com

About Scatec 
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in emerging markets. As a long-term player, we develop, build, own, and operate renewable energy plants, with 4.6 GW in operation and under construction across four continents today. We are committed to grow our renewable energy capacity, delivered by our passionate employees and partners who are driven by a common vision of ‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.  

About Aeolus
Toyota Tsusho Corporation (Toyota Tsusho) established, in March 2024 in France, Aeolus SAS (Aeolus), a joint venture to promote renewable energy business in Africa. Aeolus is owned 50% respectively by Toyota Tsusho's wholly owned subsidiaries, CFAO SAS (CFAO) and Eurus Energy Holdings Corporation (Eurus Energy). CFAO has a long business history, knowledge and network in Africa in four domains: mobility, healthcare, consumer and infrastructure. Eurus Energy operates wind and solar power projects in 15 countries and regions and is the largest wind power producer in Japan. It has expertise in all aspects of renewable energy business. To learn more, visit www.toyota-tsusho.com or connect with us on LinkedIn.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. 

This stock exchange announcement was published by Kine Aaltvedt, IR Analyst at Scatec ASA, on 5 August 2024 at 12:01 CEST.