Tunisia is intensifying efforts to address its power supply gap through strategic investments in waste-to-energy projects, increased reliance on solar and wind energy, and the launch of hydrogen production initiatives.

These developments aim to enhance energy security, reduce dependence on imports, and drive economic growth through sustainable energy solutions.

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Bridging the power production deficit

Tunisia faces a significant power deficit, with electricity imports—primarily from Algeria—constituting nearly 60 percent of its energy needs. Recognising the urgency of the situation, the government is formulating a comprehensive plan to attract investment in waste-to-energy projects.

The state-owned Tunisian Electricity and Gas Company (STEG) will play a crucial role in purchasing power generated from waste-to-energy initiatives, making such projects more financially viable. The government’s strategy includes expanding the contribution of biogas currently accounting for only 5 percent of Tunisia’s electricity supply—to mitigate the shortfall.

Scaling up renewable energy

Tunisia has set an ambitious goal of deriving 35 percent of its electricity from renewable sources by 2030. The Ministry of Industry, Mines, and Energy has allocated approximately 7.1 billion Tunisian dinars ($2.2 billion) for power sector development in 2025. This funding will support the expansion of solar and wind energy projects, targeting the generation of nearly 4,850 megawatts (MW) of green electricity within the next six years.

A landmark project under this initiative is the 100-MWac/120-MW peak solar plant in Kairouan, developed by UAE-based AMEA Power. Supported by financing from the International Finance Corporation (IFC) and the African Development Bank (AfDB), this privately funded project is set to be Tunisia’s first large-scale solar endeavour. The plant is expected to reduce greenhouse gas emissions by nearly 100,000 tons annually while lowering electricity generation costs.

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Hydrogen production

Tunisia is also positioning itself as a key player in the green hydrogen sector. The city’s strategic location—near industrial production sites and a major commercial port—makes it an ideal hub for hydrogen exports to European markets.

Following the publication of its National Hydrogen Strategy in 2023, Tunisia has signed multiple agreements with global energy leaders, including TotalEnergies and Acwa Power, to develop the necessary infrastructure. These partnerships aim to enable Tunisia to export up to 6 million tonnes of hydrogen annually by 2050, further strengthening its role in the global energy transition.

As Tunisia faces economic challenges, including a high debt burden and slow GDP growth, investing in sustainable energy is a critical step toward long-term stability. By prioritising waste-to-energy solutions, expanding solar and wind projects, and launching hydrogen initiatives, Tunisia is positioning itself as a leader in the region’s green energy transformation. These efforts will not only close the energy gap but also attract private investment and create a more resilient economy.