Tunisia
With a cumulative score of 1.28, Tunisia ranks number 76 among emerging markets and number 105 in the global ranking.
- Emerging markets
- Middle East & Africa
1.61 / 5
Power score
0.49 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Tunisia does not have a net-zero emissions target.
Nationally Determined Contributions (NDC)
The country submitted an updated Nationally Determined Contribution (NDC) ¬– its plan to achieve the goals set out in the Paris Agreement – to the United Nations Framework Convention on Climate Change in October 2021. This lays out an ambition to lower Tunisia’s greenhouse gas emissions by 45% by 2030 versus 2010 levels, of which 27% is unconditional and the remaining 18% dependent on receiving international financial and technological assistance.
Fossil fuel phase-out policy
Tunisia does not have a fossil-fuel phase-out policy. Gas still dominates the country’s energy mix and declining gas production from its own ageing gas fields, coupled with increasing demand, has driven up energy imports in recent years.
Power
Power policy
Tunisia aims to move toward a cleaner power matrix and jump from 3% of renewables generation in 2016 to 12% in 2020 and 30% by 2030. Two separate auction regimes – the authorization for smaller projects and concession for larger projects – are the main instruments to achieve these objectives. Under the authorization regime, the government contracted 64 megawatts (MW) of photovoltaic capacity in 2017, 70MW in 2018 and a further 70MW in 2020. Under the concession regime, Tunisia announced in 2018 that it will contract another 500MW of wind plants, and contracted 500MW of PV in 2019.
Project deadlines vary between the first half of 2021 and end of 2022, and the winners will secure a 20-year power purchase agreement (PPA) with the state-owned utility Tunisia Company of Electricity and Gas, known as STEG. In addition, retail electricity consumers in Tunisia that have renewable energy facilities can connect and deliver surplus generation to the grid, in return for payment from STEG.
Power policies
Power prices and costs
Due to the high level of subsidies, Tunisia’s residential electricity prices were among the lowest in Africa at $22.29 per megawatt-hour (MWh) in 2021. Industrial and commercial prices – at $97/MWh and $70/MWh, respectively – are significantly higher than the residential tariff, but still below the regional average. In 2019, Tunisia signed a tariff of $24.40/MWh for 200MW of PV – a record low for Africa.
Power market
Over 85% of Tunisia’s 6.7 gigawatts of installed power capacity and more than 95% of the electricity produced in 2021 came from gas-fired plants. As of the end of 2020, only 309MW of wind, 446MW of PV and around 144MW of small-scale PV were commissioned. However, the power mix is due to become more diversified over the next few years as auctions are set to increase the country’s clean energy capacity.
State-owned utility STEG controls over 80% of Tunisia’s power generation and has a monopoly over the transmission and distribution of electricity and natural gas. Independent power producers are allowed in the market under the concession and authorization programs and can rely on a 20-year standardized PPA with STEG. According to Law 2015-12, which regulates renewable energy generation, STEG is mandated to buy all power produced by clean energy plants.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
The country is slowly recovering from an economic crisis and the increase in peak power demand continues to outpace economic growth. Air-conditioning use is a significant factor in the rise in peak power needs, and Tunisia experienced its first ever “brownouts” – a drop in voltage below the usual mains supply level – in 2020 during a heat wave. It is one of few countries in Africa with a nearly 100% electrification rate.
Recent political instability and the 2015 law that allowed IPPs in the market are the main barriers for international investors. This indicates that support from development organizations in the form of concessional finance might be required to change the perception of market risk.
Recent clean energy projects have suffered delays in permitting. Tunisia has a 0% import tax for wind and solar products from the European Union and 30% for products outside of the EU. The country also imposes a 19% value-added tax on wind turbines, towers, blades and PV panels, and 7% for inverters.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
Tunisia has no domestic automotive manufacturing and a highly regulated import market. As of 2021, only one electric vehicle model has been granted an import quota. The government has yet to implement any substantive policy support in this sector and the country’s EV market remains at an early stage.
EV policy
The government has yet to implement any substantive policy support in this sector.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
The Tunisian government intends to improve energy efficiency by 30% by 2030. Due to the climate, air-conditioning use dominates and little heating of buildings is required. Through a series of government programs, the country has developed a successful domestic industry for solar hot water heating, which employs about 3000 people.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
The government has yet to implement any substantive policy support in this sector.
Buildings policies
Additional insights
from BNEF
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