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Tunisia's STEG awards 360 MW of solar capacity to Scatec

The Norwegian PV developer Scatec Solar has been awarded three solar power plant projects in Tunisia totaling approximately 360 MW, following a 500 MW international tender launched by the Tunisian government. The three projects of approximately 60 MW, 60 MW and 240 MW will be in Tozeur, Sidi Bouzid and Tataouine provinces respectively. The solar power plants will hold 20 years of PPAs with state-owned electricity and gas utility Société Tunisienne de l’Electricité et du Gaz (STEG).

In July 2019, the Tunisian government said it has received five bids in its 500 MW solar tender launched in November 2018. All bids were below the US$3c/kWh price threshold: the lowest bid was US$2.44c/kWh for a 200 MW project in the Tataouine province, two bidders offered US$2.7c/kWh for two 50 MW projects in the Sidi Bouzid and Tozeur provinces, while bidders offered US$2.72c/kWh for a 100 MW project in the province of Gafsa and US$2.86c/kWh for a 100 MW project in the province of Kairouan. Tunisia had pre-qualified 16 bidders for the tender, including Enel, Engie and Total.

Scatec Solar has a total of 1.9 GW in operation and under construction. The company is targeting a capacity of 4.5 GW in operation and under construction by end of 2021. The 500 MW solar tender is part of Tunisia's strategy to reach 3,500 MW of renewable (solar and wind) by 2030, enough to cover 30% of the electricity consumption. Tunisia's renewable capacity only reached 339 MW in 2018, including 240 MW of wind, 62 MW of hydropower and 37 MW of solar. Renewables account for less than 3% of total power generation in the country.