Toyota Tsusho Participates in Third Solar Power Plant IPP Project in Tunisia, Africa

Toyota Tsusho Corporation (hereinafter: Toyota Tsusho) will participate in an Independent Power Producer (IPP) project to construct, own, and operate a 100MW solar power plant and sell electricity in the Republic of Tunisia (hereinafter: Tunisia), through its group company AEOLUS SAS (hereinafter: Aeolus), which conducts renewable energy (hereinafter: RE) business in Africa.

This project marks Toyota Tsusho Group's third solar power generation business in the country.

1. Background

In Tunisia, thermal power generation accounts for the majority of domestic power generation facilities, and the country relies heavily on imports for energy sources such as oil and natural gas. Under these circumstances, the Tunisian government is actively promoting the introduction of RE, with a goal to convert 35% of its total power generation to RE by 2030.

Toyota Tsusho has set an expansion of its RE business in Africa as a growth strategy, aiming to increase its generation capacity from the current 1GW to 3GW by 2030. This project will be promoted as part of efforts to contribute to the expansion of RE introduction for both parties.

2. Project Overview

This project involves the construction, ownership, and operation of a 100MW solar power plant in the Sidi Bouzid Governorate of Tunisia. It will be promoted through a project company jointly invested in by Aeolus and Scatec ASA (hereinafter: Scatec), a Norwegian RE operator. Commercial operation is scheduled to commence in the second half of 2027, after which electricity will be sold to the Tunisian Company of Electricity and Gas (STEG) for 25 years.

Through Aeolus, Toyota Tsusho has already participated in two solar power generation projects in the country, and upon completion of this project, the total installed capacity in Tunisia is expected to reach 200MW.

This project will receive project finance loans from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), as well as grant support from the European Union (EU) through the EFSD+ guarantee and the Neighborhood Investment Platform*1. Furthermore, it has been selected for the FY2024 "Subsidy for Equipment for the Bilateral Credit Mechanism (Joint Crediting Mechanism: JCM) Financing Program" implemented by the Ministry of the Environment. Aeolus has also received investment insurance for its equity stake from the Multilateral Investment Guarantee Agency (MIGA)*3.

Toyota Tsusho Group is promoting carbon neutrality to "deliver a better planet to future children." In Africa, with the key message "for the future children of Africa," we will continue to promote green businesses that contribute to solving social issues and economic growth in Africa.

[Planned Power Plant Construction Site]

[Project Overview]

Power Plant Name

Sidi Bouzid II Solar Plant

Project Company Name

SCATEC KHOBNA PV POWER SARL

Location

Sidi Bouzid Governorate, Central Tunisia

Business Description

Solar power generation and electricity sales business

Shareholding Ratio

Scatec: 50%, Aeolus: 50%

Installed Capacity

100MW (120MWp*4)

Electricity Offtaker

Tunisian Company of Electricity and Gas (STEG)

Total Project Cost

Approximately 96 million Euros

Commercial Operation Start

First half of 2027

Financing/Guarantee Institutions

European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), European Union (EU), Multilateral Investment Guarantee Agency (MIGA)

[Aeolus Company Overview]

Company Name

AEOLUS SAS

Established

March 13, 2024

Location

France

Representative

Hideharu Toba, President

Business Description

Renewable energy business

Shareholding Ratio

CFAO: 50%, Eurazeo Energy Holdings: 50%

*1 In addition to the application of the "European Fund for Sustainable Development Plus (EFSD+) Guarantee Scheme," an EU investment support framework, a grant of 5.5 million Euros will be provided from the Neighborhood Investment Platform (NIP) for related transmission infrastructure.

*2 The "Subsidy for Equipment for the Bilateral Credit Mechanism (JCM) Financing Program" aims to reduce greenhouse gas (GHG) emissions by utilizing excellent decarbonization technologies in partner countries, measuring, reporting, and verifying the GHG emission reduction effects, issuing JCM credits, and utilizing them to achieve Japan's GHG emission reduction targets. Subsidies are provided for the introduction of decarbonization equipment, up to half of the initial investment cost. This project is being implemented in cooperation with the Tunisian government and the Japanese government.

*3 An agency of the World Bank Group, an international organization that provides guarantees to promote foreign direct investment (FDI) by investors.

*4 In solar power generation, a unit indicating the maximum output of the equipment (theoretical peak value).

<Previous Initiatives by Our Company>

・Announced August 6, 2024: Participation in a 100MW solar power plant IPP project in Tunisia

(https://www.toyota-tsusho.com/press/detail/240806_006448.html)

・Announced April 24, 2026: Completion of a 100MW solar power plant in Tunisia

(https://www.toyota-tsusho.com/press/detail/260424_006826.html)