Summary:

Last week, progress on multiple solar energy projects was announced, including in Kairouan, Tatouine, and Gafsa as more investors seek renewable energy opportunities in Tunisia. 

On 8 May 2024, UAE-based AMEA Power and a consortium of Chinese firms broke ground on a 100 megawatt (mw) photovoltaic solar power station in Kairouan. The deal was agreed to in 2019 and financing was secured in late 2023. 

AMEA Power also announced winning an additional contract for a 200 mw solar station in Tatouine in southern Tunisia. The contract to build the station comes with a purchase agreement with the Tunisian government. 

French renewable energy firm Voltalia announced plans to construct a 130 mw power station in Gafsa. The project falls under a public-private partnership with the Tunisian government, specifically the Société tunisienne de l’électricité et du gaz (STEG), to which Voltalia will sell energy for 30 years. 

Outlook: 

The recent series of announcements on solar projects mark a major foray by the Tunisian government into facilitating renewable energy investments. These announcements come after a closely coordinated tender process that was managed by the Ministry of Industry, Energy, and Mines and which will include cooperative agreements with STEG. 

The launch and execution of these projects will be an important proof of concept for future efforts in the solar and renewables space as the relevant government entities work to ensure that the deals remain productive for Tunisia while remaining attractive to foreign investors. 

Such projects promise job creation in some of Tunisia’s most neglected areas, but also risk exposure to localized corruption, labor disputes, and inefficiencies that can plague large-scale projects in Tunisia.  

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