Market Trends of Tunisia Renewable Energy Industry
This section covers the major market trends shaping the Tunisia Renewable Energy Market according to our research experts:
Wind Energy is Expected to Dominate the Market
- In 2021, only 3% of Tunisia's electricity was generated from renewables, including hydroelectric, solar, and wind energy. The country has great potential for wind energy in the future, considering government policies towards renewable power.
- By turning the kinetic energy of moving air into electrical, the wind is used to generate power. Wind drives the rotor blades of contemporary wind turbines, which transform kinetic energy into rotational energy. A shaft that connects the generator to the rotational energy produces electrical energy.
- Wind energy has the largest contribution to the country's renewable energy. According to IRENA, in 2021, Tunisia's total wind energy capacity accounted for 245 MW. Total wind installed capacity increased by approximately 41% as compared to 2012.
- Tunisia's government aims to increase renewable energy capacity in the future and plans to launch tenders for renewable power capacity. Thus, with the increasing installation of renewable power, wind energy capacity is expected to increase in the forecast period.
- In May 2022, the energy minister announced that Tunisia intended to issue international tenders in June seeking bids for the construction of 2,000 megawatts of renewable electric generating capacity as part of measures to reduce the nation's reliance on imported natural gas.
Understand The Key Trends Shaping This Market
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Upcoming Projects and Government Policies are Expected to Drive the Market
- The Tunisian government has undertaken several initiatives to increase the share of renewable energy in the country, and a number of upcoming projects will boost Tunisia's renewable energy market. In 2021, Tunisia's total renewable energy capacity accounted for 406 MW, which is expected to increase in the forecast period.
- In January 2023, the African Development Bank approved a loan package of USD 37 million raised by AMEA Power to build its 100 MW Kairouan Solar Power Plant, the first solar independent power producer (IPP) project in Tunisia, which will enable the firm to plan, build and run the facility in El Metbassta region.
- In June 2022, the Government of Tunisia announced an action program to support the production of green hydrogen for the domestic and international markets and the development of a regulatory framework to support foreign investment in this industry.
- In 2022, the Tunisian government intended to add more solar energy to the mix of sources it uses to generate electricity. By 2030, it aims to have 3.8 GW of installed solar power. To that end, it is developing a national strategy for solar energy development. Also, the Tunisian government intends to develop 1,700 MW of new renewable energy projects that should be implemented between 2023 and 2025 across the North African country.
