By: AGBI

A Norwegian-Japanese joint venture has won a contract to develop a €100 million ($118 million) wind power plant in Tunisia.

The 75-megawatt El Fahs plant will be developed by Norway’s Scatec and Aeolus SAS (Aeolus), part of the Japanese conglomerate Toyota Tsusho Group. 

The companies have signed a 25-year power purchase agreement with Tunisian state utility Société Tunisienne de l’Electricité et du Gaz (STEG), Scatec said in a statement.

The project will be financed by a combination of debt and equity, with Scatec and Aeolus being equal partners. 

Scatec is in dialogue with financial institutions regarding debt financing for the project, and the total financing structure will be communicated at financial close, which is expected in the first half of 2027.

Foreign direct investment in Tunisia surged in the first nine months of 2025 following the award of major solar projects.

In March last year, the government awarded four solar projects to foreign companies for a total of 500MW of electricity, as part of a drive to expand the share of renewables in its energy mix.

In January 2024, the World Bank said Tunisia had abundant solar and wind energy resources, with an estimated production potential of 320 gigawatts, compared to the current peak national demand of approximately 5GW.

Renewables are expected to cover half of Tunisia’s electricity needs by 2035 and 100 percent by 2050, the government said.