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Tunisia Power Market Size (2024 - 2029)

The Tunisian power market is poised for growth, driven by increasing private sector participation and government initiatives to enhance renewable energy production. Despite challenges such as reliance on natural gas imports and energy security concerns, the market's capacity is expected to expand significantly over the forecast period. The conventional thermal power segment currently leads the market, but the government's commitment to renewable energy presents new opportunities. The market's dynamics are influenced by economic sector demand, which was notably impacted by the COVID-19 pandemic, leading to a temporary reduction in electricity consumption.

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Market Size of Tunisia Power Industry

unisia Power- Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.70 %
Market Concentration High

Major Players

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*Disclaimer: Major Players sorted in no particular order

Tunisia Power Market Analysis

The Tunisian power market installed 6312.84 MW of capacity in 2020, and it is expected to reach 11316.94 MW by 2027, registering a CAGR of 7.7% during the forecast period of 2022-2027. Due to the COVID-19 pandemic, the electricity demand in Tunisia registered a significant reduction. According to STEG, about 60% to 65% of electricity demand comes from economic sectors, like industry, services, and agriculture, while the rest comes from residential demand. Thus, with most businesses temporarily closed due to the lockdown, there was a 20% reduction in the overall electricity demand during April 2020 compared to the same month in 2019. Factors, such as the increasing participation of private players in the market, are likely to drive the Tunisian power market. However, energy security challenges such as strong dependence on natural gas and imports are expected to have a negative impact on the Tunisian power market.

  • The conventional thermal power segment dominated the market in 2020 and is likely to dominate the market in the future as well. While more than 40% of the natural gas used for power generation is produced in the country, the rest of the 60% of gas is imported.
  • The Tunisian government is making an effort to produce 30% of the total electricity from renewables by 2030. This is likely to create several opportunities for the market in the future.
  • The increasing participation of private players in the country is likely to drive the Tunisian power market during the forecast period. In 2020, the Société Tunisienne de l'Electricité et du Gaz (STEG) signed a partnership agreement with Qair for a pilot project for a floating photovoltaic solar farm of a capacity of 200kV, on the lake of Tunis.

Tunisia Power Industry Segmentation

The Tunisia power market report includes:

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Tunisia Power Market Size Summary

The Tunisian power market is experiencing a transformative phase, driven by a combination of traditional and renewable energy initiatives. The market is predominantly dominated by conventional thermal power, which relies heavily on natural gas, both domestically produced and imported. This segment has maintained a significant share of the country's power generation capacity, supported by the Société Tunisienne de l'Electricité et du Gaz (STEG), which has historically controlled the majority of the market. However, the Tunisian government is actively promoting the integration of renewable energy sources, aiming to generate a substantial portion of electricity from renewables by 2030. This shift is expected to create new opportunities and attract private sector participation, which has been gradually increasing despite STEG's previous resistance to private investments.

The market landscape is evolving with the involvement of independent power producers (IPPs) and international partnerships, as evidenced by various solar and wind projects awarded to private entities. The government's commitment to expanding renewable energy capacity is further underscored by plans to launch tenders for significant renewable energy projects and the construction of combined-cycle power plants. These developments indicate a strategic move towards diversifying the energy mix and enhancing energy security. The participation of key industry players, such as Ansaldo Energia, General Electric, and Nur Energie, alongside local entities, is pivotal in driving the market's growth trajectory. As Tunisia navigates its energy transition, the power market is poised for expansion, with a focus on sustainable and diversified energy solutions.

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Tunisia Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Tunisia Installed Power Generating Capacity Forecast, in megawatts (MW), till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

Tunisia Power Market Size FAQs

The Tunisia Power Market is projected to register a CAGR of 7.70% during the forecast period (2024-2029)

Ansaldo Energia , General Electric Company, Seeraj Energy , Societe Tunisienne de l'Electricite et du Gaz (STEG) and Nur Energie Ltd are the major companies operating in the Tunisia Power Market.

Tunisia Power Market Report Snapshots

Power Market in Tunisia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)