Investment in energy storage on the industrial and commercial grid side in Tunisia

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.

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. Moreover, in August 2023, Tunisia's sub-sea connection project with Italy, called ELMED, was approved for $337 million funding from the European Commission.

We found that Tunisia can cost-effectively build a reliable electricity supply based on local power generation, with high proportions of solar and wind power. With an onshore wind potential greater than 30 times the projected 2050 demand and a solar potential greater than 100 times that demand, Tunisia has exceptional renewable energy potential.

Exploiting its renewable energy potential will also allow Tunisia to export green electricity, including green hydrogen, contributing to the GHG emission targets of the Maghreb and Europe.

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.

Tunisia must build up and expand its power generation system to increase the energy access rate to 100%. Building new power plants – no matter the technology – will require new infrastructure (including power grids), spatial planning, a stable policy framework, and access to finance.