News Services

Tunisia’s Heavy Gas Imports Stall Solar Energy Growth

Tunisia’s Heavy Gas Imports Stall Solar Energy Growth
Wednesday, 23 July 2025 18:47

• Tunisia relies on imported gas for over 90% of electricity, slowing solar expansion.
• Energy self-sufficiency fell to 39% in 2025 amid rising gas imports.
• Renewables cover only 777 MW, far below the 5,000 MW peak demand.

Tunisia depends heavily on imported gas and oil to meet its electricity needs, slowing the development of solar power. The country’s energy independence has sharply declined as domestic hydrocarbon production falls. Tunisia compensates by importing more gas and oil, which now dominate its energy mix.

Electricity production stood steady at 7,065 GWh by May 2025, according to Tunisian press reports on July 20. However, over 90% of this electricity comes from natural gas, with a growing share sourced from imports.

This heavy dependence distorts Tunisia’s energy landscape and blocks large-scale solar energy growth. The World Bank estimates that Tunisia holds a potential solar capacity of 320 GW—64 times its national peak electricity demand—but the country struggles to tap into it.

An April 2024 U.S. Department of Commerce report confirmed that fossil fuels, mainly natural gas, generated about 97% of Tunisia's electricity. The share from natural gas has stayed close to 2022 levels despite increased imports.

Tunisia imports 62% of the gas it uses for electricity, mainly through the TransMed pipeline from Algeria. Its energy self-sufficiency rate slid from 47% in 2023 to 45% in 2024 and dropped further to 39% in 2025.

The World Bank highlighted that energy imports made up over 53% of Tunisia’s trade deficit in 2023, while the energy supply bill alone accounts for about 7% of GDP in 2025.

The government continues budgetary support for the Tunisian Company of Electricity and Gas (STEG). A 2023 World Bank report noted that public transfers to offset the gap between gas costs and regulated tariffs equaled 2.3% of Tunisia's GDP in 2022.

Renewable energy development remains limited. By April 2025, Tunisia installed just 777 MW of renewable capacity, mostly photovoltaic solar for homes, along with wind and hydropower. STEG’s figures show national peak demand at roughly 5,000 MW.

Last year, the Ministry of Industry and Energy launched a 500 MW program for independent renewable electricity through a national tender. Still, the Transnational Institute in Amsterdam estimates the Tunisian Solar Plan needs about €8 billion ($9.5 billion) in investment to produce 30% of electricity from renewables by 2030.

This article was initially published in English by Abdel-Latif Boureima

Edited in English by Ange Jason Quenum

 

On the same topic
Nigeria faces widening gap between training and job market NACCIMA says graduates lack industry-relevant, job-ready skills Informal work...
Guinea has launched a national school mapping initiative to guide education reforms and investment. About 60% of youth aged 15–24 remain unemployed or...
Reforms target refinancing, cost cuts, governance improvements Plans include new regional subsidiary, potential private investment Senegal on...
Senegal to train 100 engineers, thousands in cloud computing Alibaba partnership to build sovereign cloud for Youth Olympics Initiative...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Enko Capital acquires Servair’s fast-food unit in Côte d’Ivoire, including the Burger King franchi...

Enko Capital Buys Burger King Côte d’Ivoire in Servair Restructuring
03

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
04

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
05

From eastern Chad, where measles and meningitis are spreading through overcrowded refugee camps, to ...

Weekly Health Update | Vaccination Gains Advance in Africa; Antimalarial Resistance Threatens Progress
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.