As of June 2023, Tunisia had made significant strides in harnessing solar energy, with an installed solar power capacity of 263 megawatts (MW). This represents a substantial component of the country’s overall renewable energy capacity, which stood at 565 MW.⁵

The Tunisian government has set an ambitious target to significantly expand the country’s solar energy capabilities, aiming to increase the installed capacity of photovoltaic plants in Tunisia to 3.8 gigawatts (GW) by 2030.⁶⁷

Tunisia’s electricity generation is heavily reliant on natural gas, accounting for a significant 95% of the country’s power production. As a result, the cost of electricity is closely tied to natural gas prices. As of March 2022, Tunisian households benefited from a relatively affordable electricity rate of $0.07 per kilowatt hour. In contrast, businesses faced a slightly higher rate of $0.10 per kilowatt hour, reflecting the different energy demands and usage patterns between residential and commercial consumers

Distribution of electricity generation in Tunisia in 2021, by source is given below.⁸

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• Tunisia’s electricity access landscape in 2020 revealed a mixed picture. On the one hand, a significant majority of 87% of the population enjoyed a reliable electricity connection that worked most or all of the time, indicating a high level of energy access. On the other hand, a notable 11% of the population faced disruptions, with their electrical connection working only about half the time, occasionally, or not at all, highlighting issues with grid reliability and maintenance.
• Furthermore, a small but significant 1% of the population remained unconnected to the electric grid altogether, pointing to lingering gaps in energy access, particularly in rural or underserved areas

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• In Tunisia, residential solar installations are mainly comprised of solar water heaters and small-scale photovoltaic (PV) systems, which are increasingly being adopted by households. Notably, as of 2018, a total of 176 residential solar PV systems with batteries had been installed in rural areas, providing off-grid energy access to remote communities.
• Furthermore, the country had also seen the installation of 183 solar PV pumping systems, which are used for irrigation and other agricultural purposes

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Installed Solar Farms: Approximately 5-10 significant solar farms (depending on the definition of „significant“ and including both large and smaller installations).

Projected Solar Farms: Around 10-20 additional solar farms are planned or under development, as part of Tunisia’s ambitious renewable energy targets.

Current demand⁹¹¹

Rural Electrification

• Tunisia’s journey with off-grid solar photovoltaic installations began in the 1980s, and since then, the country has made significant strides in harnessing solar energy to power remote areas.
• To address the energy needs of these areas, Tunisia is developing innovative off-grid hybrid energy systems that combine solar power with traditional gas or diesel generators.
• These systems aim to provide reliable energy access to remote areas, with a combined capacity of 50 MW. Despite progress, approximately 10-15% of Tunisia’s rural population still lacks access to reliable electricity.
• To bridge this gap, over 20 MW of off-grid solar systems have been installed in rural areas to date. Furthermore, the Tunisian Rural Electrification Project, funded by the African Development Bank, aims to expand solar power access to 100,000 households by 2025, marking a significant milestone in Tunisia’s efforts to achieve universal energy access.

Agricultural Sector

• Tunisia has made significant strides in harnessing solar energy for agricultural purposes, particularly in irrigation systems.
• To date, over 5,000 solar-powered irrigation units have been installed across the country, providing farmers with a reliable and sustainable source of energy. Building on this success, the Solar Irrigation Initiative, supported by the World Bank, has further accelerated the adoption of solar-powered irrigation systems.
• Through this initiative, solar panels have been installed on over 1,500 farms, resulting in reduced operational costs and increased efficiency. This innovative approach is not only transforming the agricultural sector but also contributing to Tunisia’s broader efforts to transition towards a more sustainable and renewable energy mix.

Tourism and Eco-Lodges

• In Tunisia’s remote and breathtaking landscapes, many hotels and eco-lodges have embraced off-grid solar systems as a reliable and sustainable solution for their power needs. One notable example is the Sahara Solar Project, which has successfully powered several eco-lodges in the Tunisian desert.
• With solar capacities ranging from 5 kW to 50 kW per site, these eco-lodges can now operate independently of the grid, reducing their carbon footprint and reliance on fossil fuels.

Projected Demand

Government Initiatives

• Tunisia aims to have 30% of its energy mix from renewable sources by 2030, with a significant portion coming from off-grid solar.
• The National Solar Energy Plan includes a goal to deploy 300 MW of off-grid solar systems by 2030.

International Support

• Tunisia’s efforts to expand off-grid solar energy have received significant support from international donors, with the European Union and the United Nations Development Programme (UNDP) committing over $100 million to various projects.
• One notable initiative is the Renewable Energy for Rural Areas Project, funded by the European Union, which aims to install 50 MW of off-grid solar systems by 2025.

Technological Advancements

• The solar industry has witnessed a significant transformation over the past decade, with the cost of solar panels plummeting by approximately 80%.
• This dramatic decrease has made off-grid solutions more accessible and affordable, paving the way for widespread adoption.
• Furthermore, advancements in battery technology are enhancing the efficiency and reliability of off-grid systems, with costs expected to decline by an additional 50% over the next five years. Tunisia’s off-grid solar market is poised for substantial growth, with a projected compound annual growth rate (CAGR) of 12% over the next decade.
• The country has set ambitious targets, aiming to increase its off-grid solar capacity from the current 20 MW to over 500 MW by 2030.

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Current Demand

• Tunisia aims to achieve 30% of its electricity generation from renewable sources by 2030.
• As of 2023, Tunisia has around 300 MW of installed solar photovoltaic (PV) capacity connected to the grid.
• Prosol Program initiative supports the installation of residential and commercial solar water heating systems, which indirectly boosts the solar PV market by increasing public awareness and acceptance of solar technologies.
• Tunur Project is a large-scale solar project in the south of Tunisia aimed at exporting solar electricity to Europe, with an initial phase targeting 250 MW capacity.

Projected Demand

• As per 2030 Energy Plan, the Tunisian government aims to install an additional 3,500 MW of solar capacity by 2030, with 1,500 MW from large-scale projects and 2,000 MW from small to medium-scale installations.
• Several large-scale solar projects are in the pipeline. The government has announced tenders and agreements for new solar power plants, totaling hundreds of megawatts of additional capacity. Notable projects include the 500 MW Tataouine Solar Plant and the 100 MW Kairouan Solar Plant.
• The on-grid solar market in Tunisia is expected to grow at a compound annual growth rate (CAGR) of around 20% over the next decade.

So, a Solar Photovoltaic Installer in Tunisia can typically earn around 5,401.60 USD to 13,747.20 USD per year, depending on their experience.¹²

The current population of Tunisia is 12,553,491.¹³

Warehouse Rents ¹⁴

• Lowest Rent: $162 (Sousse)
• Highest rent: $19,538 (Tunis)

Office rents ¹⁴

• Lowest Rent: $211 (El Haouaria)
• Highest rent: $814 (Sousse-Corniche)

Business electricity price ³

Businesses in Tunisia faced a slightly higher rate of $0.10 per kWh, reflecting the differing energy demands and usage patterns between the two sectors.

Here’s a summary of the energy infrastructure in Tunisia:

Electricity Generation⁵

• Tunisia’s energy generation is primarily based on fossil fuels, especially natural gas, which accounted for 95% of the country’s electricity in 2021.
• Tunisia also imports natural gas, mainly from Algeria, to meet almost half of its needs. The country’s national exploration company, ETAP, and foreign companies also produce gas through concessions.
• The Nawara gas field, which began production in 2020, is expected to reduce gas imports by 30% and the country’s overall energy deficit by 20% once it reaches peak production

Transmission¹⁵

• In Tunisia, the Société Tunisienne de l’Electricité et du Gaz (STEG) plays a crucial role in managing the country’s electricity and gas infrastructure.
• As the national electricity and gas utility, STEG holds a monopoly on power generation, transmission, and distribution, as well as gas transmission and distribution.
• The transmission network, which spans over 6,000 kilometers, operates at high voltages of 400 kV, 225 kV, and 150 kV, ensuring efficient and reliable power supply. Key components of the network include substations, transformers, and high-voltage power lines, all of which are managed and maintained by STEG.
• This integrated approach enables STEG to oversee the entire energy supply chain, from generation to end-consumer delivery, making it a vital player in Tunisia’s energy sector.

Distribution System

• Tunisia’s electricity distribution network is a vast and complex system that delivers power to millions of customers across the country. The network operates at various voltage levels, including medium voltages of 30 kV and 15 kV, as well as low voltages of 400 V and 230 V, to ensure safe and efficient power supply to households and businesses.
• Spanning an impressive 190,000 kilometers, the distribution network is a critical component of Tunisia’s energy infrastructure. With over 4 million customers connected to the grid, the network plays a vital role in powering the country’s economic and social activities, making it an essential service for Tunisian citizens and businesses alike.

Energy Access¹⁶

• As of 2021, Tunisia boasts an impressive electrification rate, with 99.9% of its population having access to electricity. The South-Eastern region lags slightly behind, with a rate of 99.8%. This represents a significant improvement from 1962, when only 21% of the population had access to electricity.
• In 2022, Tunisia’s power production capacity reached 5,944 megawatts (MW) across 25 power plants, generating 19,520 gigawatt-hours (GWh) of electricity. The state power utility company, STEG, dominates the energy landscape, controlling 92.1% of the country’s power production capacity and producing 83.5% of the electricity.
• This concentration of power generation and distribution underscores STEG’s critical role in ensuring reliable and widespread access to electricity in Tunisia.

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Tunisian Solar Plan (PST)

• In response to the national energy transition strategy, Tunisia established the Tunisian Solar Plan (PST) aimed at increasing the share of renewable energy in total electricity production.
• The PST sets ambitious targets, including increasing the share of renewable energy to 30% by 2030.
• This plan provides a framework for the development of solar energy projects across the country.

Law 2015-12 on Electricity Production from Renewable Energy

• This law, enacted in 2015, serves as a cornerstone for promoting investment in self-generation projects and independent production of electricity from renewable sources in Tunisia.
• It establishes a comprehensive regulatory framework governing the implementation of electricity production projects from renewable energies through three distinct regulatory regimes: self-consumption, permit regime via calls for projects, and concession regime via calls for tenders.
• Under the self-consumption regime, individuals or entities are allowed to produce electricity from renewable energy sources for their own consumption.
• The permit regime via calls for projects enables the issuance of permits for electricity production projects from renewable energies through competitive bidding processes.
• The concession regime via calls for tenders allows for the granting of concessions to private entities for the development and operation of renewable energy projects through competitive tendering processes.

Tentative Legislation to Allow Private to Private Sale

• Legislation approved in 2018 but not yet implemented by MEMTE would allow private developers to sell electricity to private consumers and allow developers to form a SPV to acquire non-recourse financing for this scheme.
• STEG has delayed policy implementation out of concerns it could further exacerbate liquidity problems and that private-to-private sale of electricity could prove a threat to their current business model.
• Private sector stakeholders have also been told that separate (draft) legislation to allow aggregation of residential consumers would face a similar fate, out of concern that even if these systems would improve STEG’s bottom-line, such business models could expand into the commercial and industrial sectors.

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Prosol Program

• The Prosol (Programme Solaire) initiative is one of the most notable programs aimed at encouraging the use of solar energy in residential, commercial, and industrial sectors.
• The program offers financial support for the installation of solar water heaters. It includes a subsidy that covers a significant portion of the installation cost.
• The remaining cost can be financed through low-interest loans, which are facilitated through partnerships with local banks.

Concession Scheme

• Projects under this scheme are utility scale projects that sell electricity to STEG, with a fraction allowed for international export.
• MEMTE grants a concession to developers following a public call for tenders and then negotiates a power-purchase agreement with the winning concessionaire.
• Notably, the template PPA does not include a sovereign payment guarantee or other standard allowances for potential developers (as defined by IFC’s Scaling Solar PPA template).
• As of December 2020, Tunisia has authorized two solar projects of 50 MW each, two solar projects of 100 MW each, and one solar project of 200 MW.

Authorization Scheme

• This scheme applies to smaller scale IPP projects on the MV/HV grid that are not a part of formal concession schemes but are designed primarily for selling electricity to STEG.
• They are subject to a two- year agreement with STEG that can be extended as necessary.
• These agreements have been easier to negotiate than concession scheme projects, due to their smaller scale and reduced complexity.
• As of December 2020, Tunisia has awarded private companies 18 solar projects of 10 MW each and four wind projects of 30 MW each through this scheme.

Self-Consumption Scheme

• Projects under the self-consumption scheme can be connected to the LV or MV grid, with slightly different regulations between the two.
• Specifically, LV self-consumption projects are only valid for one year (upon which they can be renewed annually), while MV projects are valid for 20 years25. For projects connected to the LV grid, the capacity cannot exceed that of the STEG subscriber.
• MV grid projects can sell some electricity back to the grid, though STEG will not purchase more than 30% of annual production.
• Lastly, MV grid customers can receive wheeling services to areas of consumption for a fee, though this is not allowed on the LV grid. Through December 2020, a total of 79 MW of solar energy capacity was installed and connected to the low voltage grid and 36 MW of capacity was connected to the medium voltage grid. ·

 Creation of the Energy Transition Fund

• The Energy Transition Fund was formed in 2017 to support the growth of renewable energy investments.
• The fund provides grant funding for renewable energy projects, but it is also legally allowed to provide debt and equity financing to private developers.

Tunisian-German Partnership

• Formed at the beginning of 2012, the Tunisian-German Partnership aims to enhance energy cooperation between Tunisia and Germany, focusing primarily on renewable energies, energy efficiency, sustainable development, and climate protection.
• This partnership has led to the implementation of various projects and initiatives to promote renewable energy deployment in Tunisia, including the Supporting the Tunisian Solar Scheme project financed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
• The project supports the development of the solar market in rural areas and provides technical assistance for the implementation of the National Renewable Energy Power Generation Programme.
• Notably, the project has facilitated the tendering and installation of solar photovoltaic (PV) energy projects across multiple governorates in Tunisia, contributing to the country’s renewable energy goals.

Tax and Financial Incentives

• The government offers tax benefits, including exemptions from value-added tax (VAT) and customs duties on renewable energy equipment.
• Additionally, there are financial subsidies and incentives for the installation of solar panels and other renewable energy systems.

Project-Specific Support

• Large-scale projects, such as the 120-megawatt solar power project in Kairouan, benefit from public-private partnerships (PPPs) and significant financial investment.
• This particular project, funded at $86 million, is expected to significantly boost Tunisia’s renewable energy capacity​.

²⁰

Tozeur Solar Farm

• The Tozeur solar farm project, managed by the Tunisian Electricity and Gas Company (STEG), comprises two operational phases.
• Phase 1 of the project, commissioned in 2019, boasts a nameplate capacity of 10 MWp/dc and utilizes photovoltaic (PV) technology. Although the operator for this phase is unspecified, it stands as a testament to Tunisia’s commitment to renewable energy initiatives. Phase 2, operational since 2022, features a nameplate capacity of 10 MWac and also utilizes PV technology.
• In this phase, the project ownership is shared between STEG and the Kreditanstalt für Wiederaufbau (KfW), a German financial institution. Notably, the operational responsibilities for Phase 2 are undertaken by Scatec ASA, demonstrating collaborative efforts between public and private entities to advance solar energy deployment in Tunisia.

Elgordhab Solar Farm ²¹

• The Elgordhab solar farm represents a significant advancement in Tunisia’s renewable energy landscape. Commissioned in 2019, this project stands as a testament to the nation’s commitment to sustainable energy initiatives.
• With a capacity of 10 MWp/dc and utilizing photovoltaic (PV) technology, the farm contributes significantly to Tunisia’s renewable energy generation capacity.

Projected Solar projects²²

Kairouan Solar PV Park 3

• The Kairouan Solar PV Park 3 is a forthcoming project being developed by AMEA Power and TBEA Xinjiang New Energy. Spanning 200 hectares, the ground-mounted solar project aims to generate 222,000 MWh of electricity, powering 43,000 households while offsetting 117,000 tons of CO2 emissions annually.
• The project features 220,416 modules with a 545W nameplate capacity, accompanied by 16 inverters. Scheduled for completion in 2025, Kairouan Solar PV Park 3 is poised to make a significant contribution to Tunisia’s renewable energy landscape

TuNur Ltd

Website: https://www.tunur.tn/

TuNur Ltd is a pioneering renewable energy, transmission, and green hydrogen developer strategically positioned at the crossroads of Europe and Africa. Aligning with the Tunisian Government’s ambitious goal of achieving 30% renewable energy in its energy mix by 2030, TuNur is committed to being a long-term partner in supporting this vision. To achieve this, the Government is promoting large-scale solar and wind projects, and TuNur is actively participating in tenders and projects alongside leading international and local partners.

TuNur’s portfolio includes a series of renewable energy projects designed to produce low-cost green electrons and molecules in Tunisia for export. Each export project comprises three key components:

• Generation: Producing renewable energy through solar or wind power.
• Transmission: Transporting the generated energy through efficient transmission systems.
• Energy Sale: Supplying the produced energy to markets, promoting a sustainable energy future.

Through these projects, TuNur aims to contribute significantly to Tunisia’s renewable energy ambitions while fostering a sustainable energy ecosystem.

Ansaldo Energia

Website: https://www.ansaldoenergia.com/

Ansaldo Energia is a full-service provider of proven, flexible solutions for the power generation industry. With its well-established know-how, the company covers every stage in the design.

Tunisian Company of Electricity and Gas

The Tunisian Company of Electricity and Gas is a public company with an industrial and commercial nature. Founded in 1962, its mission is the generation, transmission and distribution of electricity and gas in Tunisia. The Tunisian Company of Electricity and Gas (STEG) as a public and a non administrative company, has the essential role to :

• Electrify the country
• Develop the natural gas network
• Realize the electrification and gas infrastructure.

• Email : communication@steg.com.tn
• Telephone: (+216) 71 781 000
• Website : https://steg.com.tn/fr/index.html
• Linkedin: https://www.linkedin.com/company/soci-t-tunisienne-de-l’electricit-et-du-gaz-steg-/?originalSubdomain=tn

SEERAJ Energy

Website: https://www.linkedin.com/company/seerajenergy/about/

Company Overview

SEERAJ Energy is a project management and development support company based in Tunisia, North Africa. We specialize in energy and power utility-scale projects, including wind, solar, and bioenergy, implemented on an IPP (Independent Power Producer) and BOO (Build, Own, Operate) basis.

Services

• Renewable Energy Project Development: We support clients throughout the project life cycle, from planning and development to implementation, construction, and operation.
• Energy Efficiency Solutions: We implement energy efficiency solutions for industrials, farmers, and the tertiary sector.
• Commercial Solar Photovoltaic Solutions: We offer C&I (Commercial and Industrial) solar photovoltaic solutions and projects to the local market.

Additional Services

• Advising and Assistance: We provide economical and technical advisories on photovoltaic solar installations.
• Bid Analysis: We conduct technical and commercial bid analysis.
• Project Management and Development: We offer full project management and development services for solar projects.

Target Markets

• Regional Emerging Markets: We target regional emerging and growth renewable energy markets.
• Local Market: We focus on the local market for commercial solar photovoltaic solutions and projects.