Eurus Energy to Participate in 100MW Solar Photovoltaic IPP Projects in Tunisia

Eurus Energy Holdings Corporation (“Eurus Energy") announced that AEOLUS SAS ("AEOLUS"), which was established through an investment with CFAO SAS, will participate in two independent power producer (IPP) projects to construct, own, operate 100MW (120MWp) solar power plants and sell electricity in the Republic of Tunisia ("Tunisia").

This will be our group’s first renewable energy project in Tunisia, and the first project for Aeolus since its establishment.

Background
Tunisia relies on imports for most of its energy sources, such as oil and natural gas, with thermal power generation accounting for the majority of domestic power generation capacity. 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 a renewable energy procurement program to achieve this target.

Project Summary
The project is to develop, own, and operate solar power plants in Sidi Bouzid and Tozeur of Tunisia, with capacity of 50 MW (60MWp) respectively. AEOLUS will take a 49% stake in the project, while Scatec ASA, a Norwegian company involved in the construction and operation of solar power plants, will take 51%. Construction is scheduled to begin in August 2024, and after the completion of the construction, the electricity will be sold to the national utility under a 20-year power purchase agreement with option for a 10year extension.

The total project cost is approximately 79 million euros. The projects are financed through non-recourse project finance debt, including from the European Bank of Reconstruction and Development (“EBRD”) and Société de Promotion et de Participation pour la Coopération Economique (“Proparco”). Aeolus is also supported through the political risk insurance provided by the Multilateral Investment Guarantee Agency (“MIGA”)*1 of the World Bank Group. In addition, this project has been selected by the Ministry of the Environment, Japan for Financing Programme for Joint Crediting Mechanism (JCM) Model Projects*2 in FY2023.

Through AEOLUS, the Eurus Energy Group will contribute to the spread of clean, low-cost renewable energy in Africa, and will continue its efforts to further expand wind and solar power generation, thereby contributing to global environmental conservation and the creation of a sustainable society.