What limiting Tunisia's energy transition?
At the system level, a number of other elements currently limit Tunisia’s progress in the ener-gy transition: subsidised electricity prices that contribute to the national fiscal deficit, energy market structures, hesitant support from institutional actors, and human resources bar-riers.
What percentage of Tunisia's electricity is renewable?
In 2022, only 3% of Tunisia’s electricity is generated from renewables, including hydroelectric, solar, and wind energy. While STEG continues to resist private investment in the sector, Parliament’s 2015 energy law encourages IPPs in renewable energy technologies.
Will Tunisia's energy future be dominated by hydrocarbon-based generation?
Though hydrocarbon-based generation will continue to dominate Tunisia’s overall energy picture in the near term, the potential for growth in wind and solar power generation is significant. The GOT is highly interested in diversifying into renewable energy technologies to help meet growing domestic electricity demand.
How does Tunisia's energy situation affect its financial sustainability?
To summarise, Tunisia’s energy situation is characterised by high dependencies on fossil fuels imports that negatively impact the state’s financial sustainability. The negative trade balance regarding energy commodities raises the state’s deficit, which, in turn, delays the energy transition.
What is the energy sector in Tunisia?
The sector also offers opportunities for possible Build-Own-Operate (BOO) or Build-Operate-Transfer (BOT) projects. Much of Tunisia’s electricity production comes from gas turbines. Major players in this sector include General Electric (USA), Mitsubishi (Japan), Ansaldo (Italy), and Siemens (Germany).
What are the challenges faced by Tunisia's electricity sector?
The Tunisian electricity sector faces three main challenges: high dependence on imported fossil fuels, distortive subsidies, and a weak financial performance at utility level. The upscaling of renewables in Tunisia offers the opportunity to meet the growing electrici-ty demand, reduce the energy deficit, and foster economic development.
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