Tunisia Renewable Energy Market

Tunisia Renewable Energy Market Analysis

The Tunisia Renewable Energy Market is expected to register a CAGR of greater than 3% during the forecast period.

• Over the medium term, factors such as supportive government policies and increasing adoption of renewable energy with the declining price of solar panels and wind turbine installations are expected to drive the market in the forecast period.
• On the other hand, the rising adoption of alternate clean power sources, such as gas-fired power plants and nuclear energy projects, is likely to restrain the market growth.
• Nevertheless, the technological advancements in solar PV manufacturing and government policies toward a greener environment will likely provide huge opportunities for the market studied.

Tunisia Renewable Energy Market Trends

Wind Energy is Expected to Dominate the Market

• In 2021, only 3% of Tunisia's electricity was generated from renewables, including hydroelectric, solar, and wind energy. The country has great potential for wind energy in the future, considering government policies towards renewable power.
• By turning the kinetic energy of moving air into electrical, the wind is used to generate power. Wind drives the rotor blades of contemporary wind turbines, which transform kinetic energy into rotational energy. A shaft that connects the generator to the rotational energy produces electrical energy.
• Wind energy has the largest contribution to the country's renewable energy. According to IRENA, in 2021, Tunisia's total wind energy capacity accounted for 245 MW. Total wind installed capacity increased by approximately 41% as compared to 2012.
• Tunisia's government aims to increase renewable energy capacity in the future and plans to launch tenders for renewable power capacity. Thus, with the increasing installation of renewable power, wind energy capacity is expected to increase in the forecast period.
• In May 2022, the energy minister announced that Tunisia intended to issue international tenders in June seeking bids for the construction of 2,000 megawatts of renewable electric generating capacity as part of measures to reduce the nation's reliance on imported natural gas.

Upcoming Projects and Government Policies are Expected to Drive the Market

• The Tunisian government has undertaken several initiatives to increase the share of renewable energy in the country, and a number of upcoming projects will boost Tunisia's renewable energy market. In 2021, Tunisia's total renewable energy capacity accounted for 406 MW, which is expected to increase in the forecast period.
• In January 2023, the African Development Bank approved a loan package of USD 37 million raised by AMEA Power to build its 100 MW Kairouan Solar Power Plant, the first solar independent power producer (IPP) project in Tunisia, which will enable the firm to plan, build and run the facility in El Metbassta region.
• In June 2022, the Government of Tunisia announced an action program to support the production of green hydrogen for the domestic and international markets and the development of a regulatory framework to support foreign investment in this industry.
• In 2022, the Tunisian government intended to add more solar energy to the mix of sources it uses to generate electricity. By 2030, it aims to have 3.8 GW of installed solar power. To that end, it is developing a national strategy for solar energy development. Also, the Tunisian government intends to develop 1,700 MW of new renewable energy projects that should be implemented between 2023 and 2025 across the North African country.

Tunisia Renewable Energy Industry Overview

The Tunisia renewable energy market is moderately fragmented. Some of the major players in the market (in no particular order) include Nur Energie Ltd., General Electric Company, Ansaldo Energia SpA, SeerajEnergy, and Tunisian Company of Electricity and Gas (STEG).

Tunisia Renewable Energy Market Leaders

Tunisia Renewable Energy Market News

• In December 2022, Italian energy company Eni announced that a new 10 MW photovoltaic plant had started production. The plant, installed in the city of Totaquine, will supply the Tunisian national electricity grid with over 20 GWh of energy per year by ensuring savings of around 211,000 tons of CO2 over the plant's life.
• In September 2022, Tunisia had 260 German companies operating in diverse sectors. The country is considering three calls for tender for developing 2,000 MW of renewable energy as part of the system of excellence, with investments totaling USD 1.6 billion.