MIGA Guarantees 100-MW Tunisian Solar by Scatec, Aeolus

• MIGA backs Aeolus’ 100MW Sidi Bouzid solar project with up to EUR 13.05m guarantees, enabling 25-year PPA financing, EBRD/EIB funding, and STEG power supply for 20 years.

MIGA is providing up to EUR 13.05 million (USD 14.86 million) in guarantees for a 100-MW solar power project in Tunisia’s Sidi Bouzid region. The 20-year coverage supports investment by Aeolus SAS, a France-based joint venture involving subsidiaries of Toyota Tsusho, into the project company Scatec Khobna PV Power SARL, which will build, own and operate the photovoltaic facility in Mezzouna.

The project will sell electricity to state utility STEG under a 25-year power purchase agreement and includes about 12 km of high-voltage transmission lines. Financing comes from the EBRD and the EIB, with additional support from the EU via EFSD+ and a grant, plus reinsurance from Japan’s Nippon Export and Investment Insurance. MIGA said it is its fourth solar independent power producer backing in Tunisia, following earlier support for Aeolus’ Sidi Bouzid I and Tozeur projects.

How will MIGA’s EUR 13.05m guarantees accelerate Tunisia’s 100MW Sidi Bouzid solar project?

• De-risks private investment for the 100MW facility by covering country and political risk over a long term (20 years), making lenders more comfortable putting capital into construction and operations.
  
• Helps unlock broader project finance by reducing the perceived likelihood of delays or losses linked to adverse government or regulatory outcomes—especially important for large-scale solar plants with long payback periods.
  
• Strengthens bankability of the power purchase agreement framework with Tunisia’s state utility (STEG) by improving the risk profile around the contract’s enforceability and payment continuity.
  
• Supports confidence for the build-own-operate model by backing the special-purpose project company’s creditworthiness, encouraging experienced developers and investors to commit equity and debt.
• Makes it easier to raise financing for grid-related components (including roughly 12 km of high-voltage transmission lines) by mitigating risks that can otherwise cause cost overruns or financing gaps during commissioning.
  
• Accelerates project timelines indirectly by enabling faster financial close—guarantees can reduce the time spent re-pricing risk, renegotiating terms, or seeking additional security measures.
  
• Improves the overall financing package by complementing other lenders and EU instruments (EBRD, EIB, EFSD+) and by reinforcing the role of reinsurance (including coverage via Japan’s NEXI), creating a more diversified risk-sharing structure.
  
• Enables larger or more efficient capital mobilization by reducing the funding premium that investors often demand when political risk is elevated, potentially lowering the cost of capital for the solar build.
  
• Provides continuity with prior MIGA experience in Tunisia’s renewables sector by building on earlier solar guarantee programs, which can reduce uncertainty for new stakeholders assessing the market.
• Reinforces Tunisia’s renewable energy expansion by helping bring an additional 100MW asset to grid—supporting quicker capacity additions relative to projects that cannot secure sufficient risk coverage.