Summary:

On 30 December 2024, French renewable energy firm, Voltalia, announced the firm’s selection by the Tunisian government to establish a 139-megawatt solar energy production site in Menzel Habib, Gabes. 

The project will secure energy equivalent to the annual consumption of 620,000 residents. The construction is planned to start in late 2025 and with plans to begin operations in 2027. The electricity sales contract will last for 25 years. 

The Paris-based company previously won a similar project in May 2024, committing to produce 130 megawatts in Gafsa for 30 years in a public-private partnership with Société Tunisienne de l’Electricité et du Gaz (STEG). 

The two Voltalia projects are only 125 kilometers apart which will allow for shared construction, transport, and maintenance efficiencies, further enhancing cost-effectiveness. 

Outlook: 

Voltalia’s new project will help the Tunisian government reach its goal to meet 35% of energy needs with renewable energy production and decrease dependency on fossil fuels.  It could also encourage other foreign investors to explore this strategic sector in Tunisia. 

The project also displays increasing interest of European investors in Tunisia’s renewable energy sector. In addition to being a promising market for renewable energy investors, Tunisia offers the opportunity to export electricity through submarine cables after the approval of the El-Med project. 

While no immediate economic benefits are to result from these projects, they are likely to create jobs opportunities in two of Tunisia’s marginalized cities, Gabes and Gafsa.  

However, renewable energy projects reflect a new type of dependence as major projects are led by foreign companies with the role of the Tunisian government and Tunisian companies reserved for the local distribution process. Except for TuNur, a British-Tunisian company, no other major Tunisian company has been contracted for renewable energy production projects.  

Explore our services or speak with our team of North Africa-based risk experts.