Summary:

As southern European states look to pivot their energy supply chains away from Russia and toward a green energy future, Tunisia has struggled to find its share of the potential economic windfall. Algeria’s talks with Italy have dominated headlines and conversations around the potential in Libya continue, even as the country’s political future remains uncertain, claimed by two rival governments. Tunisian officials continue to pursue renewable energy and green energy deals and have welcomed innovation in this space, however, in the short term, Europe is searching for more comprehensive solutions for oil and natural gas with natural partnerships available in Algeria and, perhaps in time, Libya.

Outlook:  

Despite Europe’s prioritization of green energy, there is, in the short term, still significant demand for oil and natural gas. Tunisia’s potential in the solar energy space is encouraging, but can’t meet short-term needs, nor demand in a significant way. As a net importer of energy and fuel, Tunisia has significant ground to make up in production and export capacity to develop into a meaningful European energy partner in the future. Furthermore, ongoing challenges in Tunisia to sustaining phosphate production have limited export potential for one of the natural resources of which Tunisia has significant deposits.

Our team found recent commentary by Alberto Rizzi on the Middle East Institute’s Podcast Middle East Focus particularly helpful in framing this issue.

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