Tunisia renewable energy market size in 2026 is estimated at 1.62 gigawatt, growing from 2025 value of 1.29 gigawatt with 2031 projections showing 5.02 gigawatt, growing at 25.42% CAGR over 2026-2031. This report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).
Solar's mature developer ecosystem, including Scatec, Voltalia, and Qair, benefits from pre-cleared land, rapid permitting, and proven O&M track records, while TuNur's 4.5 GW CSP export concept remains stalled due to the lack of Italian offtake. Wind advances face land-use complexity; yet, an eventual fast-track permitting regime could cut lead times by a year and support Tunisia's gains in renewable energy market share for wind equipment suppliers. Hybrid PV-plus-storage projects, now in the design stage, will enhance capacity factors and grid stability, reinforcing solar's lead while enabling wind to supply round-the-clock blends that appeal to future hydrogen electrolyzers.
Tunisia Renewable Energy Market Trends and Insights
Utility-scale Solar PV Auction Roll-outs 2024-2026
Systematic auctions covering 1,700 MW of new capacity guarantee 20- to 30-year PPAs with sovereign backing, enabling projects such as Qair’s 298 MW plant and Voltalia’s 130 MW facility in Gafsa at tariffs below USD 0.04/kWh. Annual output from awarded capacity is expected to reach 1,000 GWh, avoiding 250,000 t of natural-gas consumption worth USD 125 million and placing the Tunisia renewable energy market on a firm near-term growth path. Irradiation surpassing 2,000 kWh/m² in Tozeur and Sidi Bouzid drives capacity factors close to 25%, yet evacuation hinges on transmission upgrades co-financed by the EUR 113 million Siemens-led smart-grid program.Lower LCOE for Hybrid (PV + Storage) Plants
Hybrid solar-plus-storage systems now operate at levelized costs below USD 0.06/kWh in high-resource areas, making them cheaper than gas-fired peaking turbines while supplying evening demand peaks. Lithium-ion battery prices declined by roughly 15% in 2024, and developers embed 2- to 4-hour storage to lift capacity factors above 40% and capture premium dispatch payments. Industrial estates around Tunis, Sfax, and Gabès have adopted the model to secure predictable electricity costs, spurring a secondary market for behind-the-meter energy management services.Fiscal Stress at State Utility STEG
STEG’s debt reached TND 4 billion (≈ approximately USD 1.32 billion) in 2024, driving deferred grid upgrades and raising doubts about the bankability of the PPA. Subsidies consumed 5.3% of GDP in 2022, and multilateral guarantees, such as MIGA’s USD 23.5 million cover for the 120 MW Kairouan plant, have become essential. Recapitalization or subsidy reform is needed to restore credit and lower WACC.Other drivers and restraints analyzed in the detailed report include:
- EU-Africa HVDC Interconnection Incentives
- Green-hydrogen Export MoUs with EU Utilities
- Grid Congestion in Coastal Governorates
Segment Analysis
Solar held 70.62% of the Tunisia renewable energy market in 2025, anchored by auctions that delivered the lowest tariff globally at 2.9 euro cents per kWh. Utility-scale wins totaling 498 MW in January 2025 keep solar's pipeline robust, and the Tunisia renewable energy market size for solar is forecast to exceed 3.4 GW by 2031. Yet wind's 34.76% CAGR will lift its share from 29.38% to nearly 36%, propelled by 600 MW of tenders and a 75 MW Chenini farm breaking ground in 2025. Floating offshore feasibility studies in the Gulf of Gabès hint at a future diversification path.Solar's mature developer ecosystem, including Scatec, Voltalia, and Qair, benefits from pre-cleared land, rapid permitting, and proven O&M track records, while TuNur's 4.5 GW CSP export concept remains stalled due to the lack of Italian offtake. Wind advances face land-use complexity; yet, an eventual fast-track permitting regime could cut lead times by a year and support Tunisia's gains in renewable energy market share for wind equipment suppliers. Hybrid PV-plus-storage projects, now in the design stage, will enhance capacity factors and grid stability, reinforcing solar's lead while enabling wind to supply round-the-clock blends that appeal to future hydrogen electrolyzers.
Complete Report Scope:
- By Technology
- Solar Energy (PV and CSP)
- Wind Energy (Onshore and Offshore)
- Hydropower (Small, Large, PSH)
- Bioenergy
- Geothermal
- Ocean Energy (Tidal and Wave)
- By End-User
- Utilities
- Commercial and Industrial
- Residential
List of Companies Covered in this Report:
- Société Tunisienne de l’Électricité et du Gaz (STEG)
- Eni SpA
- Scatec ASA
- Nur Energie Ltd
- TotalEnergies SE
- Engie SA
- Ansaldo Energia SpA
- Enel Green Power
- AMEA Power
- Qair Energy
- Gamco Energy
- Akuo Energy
- Masdar
- Siemens Gamesa
- Vestas Wind Systems
- Siemens Energy
- Iberdrola SA
- Seeraj Energy
- Carthage Power Company
- Taqa Arabia
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 Introduction
4 Market Landscape
5 Market Size & Growth Forecasts
6 Competitive Landscape
7 Market Opportunities & Future Outlook
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Société Tunisienne de l’Électricité et du Gaz (STEG)
- Eni SpA
- Scatec ASA
- Nur Energie Ltd
- TotalEnergies SE
- Engie SA
- Ansaldo Energia SpA
- Enel Green Power
- AMEA Power
- Qair Energy
- Gamco Energy
- Akuo Energy
- Masdar
- Siemens Gamesa
- Vestas Wind Systems
- Siemens Energy
- Iberdrola SA
- Seeraj Energy
- Carthage Power Company
- Taqa Arabia
