Tunisia Approves Five Solar Power Plant Projects to Boost Energy Production
The Tunisian People's Assembly adopted five draft laws on Tuesday evening during a plenary session, approving concession agreements for solar power plants in several governorates of the Republic. These projects are part of the national strategy to accelerate the energy transition and diversify electricity production sources.
The adopted texts concern the Khobna solar power plant (No. 01/2026), approved by 73 votes in favor, 9 abstentions, and 33 votes against; the Mazzouna solar power plant in Sidi Bouzid governorate (No. 02/2026), adopted by 75 votes in favor, 9 abstentions, and 33 votes against; the El Ksour solar power plant in Gafsa governorate (No. 03/2026), adopted by 72 votes in favor, 8 abstentions, and 32 votes against; the Sagdoud solar power plant in Gafsa (No. 04/2026), adopted by 70 votes in favor, 8 abstentions, and 30 votes against; and the Menzel El Habib solar power plant in Gabès (No. 05/2026), adopted by 72 votes in favor, 10 abstentions, and 32 votes against.
These five solar power plants are distributed among the governorates of Sidi Bouzid, Gafsa, and Gabès, with a total production capacity of approximately 598 megawatts and a global investment cost estimated at 1.64 billion dinars. The authorities are counting on these projects to reduce electricity production costs, with sale prices ranging from 98.8 to 124.4 millimes per kilowatt-hour, which is approximately one-third of the cost of production based on imported natural gas, estimated at around 300 millimes.
According to the presented data, all the produced energy will be sold exclusively to the Tunisian Electricity and Gas Company (STEG).
The projects will also allow for estimated foreign exchange savings of 246 million dinars and a reduction in natural gas imports of 13.3% compared to the total imports recorded in 2024.
The agreements contain common contractual provisions, including a concession period of 25 years non-renewable for most projects, except for the Sagdoud solar power plant in Gafsa, which has a concession period of 20 years with the possibility of an additional 10-year extension. At the end of the concession period, the installations will be returned to STEG for a symbolic dinar, or dismantled, and the sites will be rehabilitated at the expense of the investors.
Investors will benefit from tax incentives, including exemption from corporate tax for 5 years from the start of operation, extended to 10 years for the Sagdoud project. The agreements are governed by Tunisian law and provide for recourse to conciliation or international arbitration in Geneva until the repayment of financing, before a potential shift to the Tunis Chamber of Commerce.
The projects are distributed as follows: the Khobna solar power plant in Sidi Bouzid with a capacity of 198 megawatts for a cost of 500 million dinars; the Mazzouna solar power plant in Sidi Bouzid with a capacity of 100 megawatts for 270 million dinars; the El Ksour solar power plant in Gafsa with a capacity of 100 megawatts for 260 million dinars; the Sagdoud solar power plant in Gafsa with a capacity of 100 megawatts for 305 million dinars; and the Menzel El Habib solar power plant in Gabès with a capacity of 100 megawatts for an equivalent cost.
Regarding individual projects, the El Ksour solar power plant, carried out by the "Car International" company, is expected to produce approximately 260 GWh per year and generate annual savings estimated at 52 million dinars in foreign exchange. The Sagdoud and Menzel El Habib solar power plants are expected to produce approximately 280 GWh per year each, with an estimated reduction in energy imports of 56,000 tonnes of oil equivalent per year for each project.
During the debates, deputies expressed divergent positions. Supporters of these projects presented them as a strategic choice to strengthen national energy security, reduce production costs, support regional development, stimulate local economies, and create employment opportunities.
Opponents raised questions about the transparency in setting tariffs, their alignment with the global decline in solar technology costs, and reservations about certain clauses related to international arbitration and their potential implications on national sovereignty. They also called for ensuring the protection of productive agricultural lands.
