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State power utility company STEG controls 92.1% of the country’s installed power production capacity and produces 83.5% of the electricity. The remainder is imported from Algeria and Libya as well as produced by Tunisia’s only independent power producer (IPP) Carthage Power Company (CPC), a 471-MW combined-cycle power plant.
One third of the projects will be for wind farms and two thirds for solar photovoltaics. Tunisia’s national grid is connected to those of Algeria and Libya which together helped supply about 12% of Tunisia’s power consumption in the first half of 2023.
Tunisia relies on imported natural gas to meet the majority of its growing electricity needs, even though the country has a vast potential to generate renewable energy. Despite limited economic growth over the last decade, peak demand for electricity has continued to grow at a high rate, around 5% per year between 2010 and 2022.
Three key drivers will dictate Tunisia's energy transition: energy security, given Tunisia's growing energy balance deficit; economics, given the relative decrease in the price of renewables; and environment, given the Country's commitment to reduce domestic greenhouse gas emissions.
The multi-year support to Tunisia’s energy sector, particularly to increase renewable energy generation, has been financed by both the TERI Anchor Trust Fund and the Compact with Africa Trust Fund – an associated Trust Fund to the TERI Umbrella program.
In 2024, the GOT is also expected to launch a tender for the construction of at least one 470-550 MW combined-cycle power plant in Skhira (south Tunisia) as an IPP. In May 2018, the Ministry of Energy and Mines published a call for private projects to build renewable power plants with a total capacity of 1,000 MW (500 MW wind and 500 MW solar).
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