Tunisia's 2027 Budget Plan Includes Reduced Tariffs on Solar Panels

Tunisia's government has announced plans to reduce tariffs on imported solar panels to 10% as part of its 2027 budget plan. The move aims to boost the country's renewable energy sector and reduce its reliance on fossil fuels. Prime Minister Sarra Zaâfrani Zenzri presented the plan to the Assembly of People's Representatives and the National Council of Regions and Districts. The plan also includes expanding the scope of the Energy Transition Fund to finance environmental upgrading operations for businesses.

The country's national hydrocarbon production is expected to rebound in 2027, driven by the start of production at the "Cosmos" offshore oil and gas field in the Gulf of Hammamet. This comes after several years of decline. Three solar projects with a total capacity of 200 MW began operating in the first half of 2026. The government is also accelerating the development of photovoltaic power plants in Sidi Bouzid, Gafsa, and Gabès, with a total capacity of nearly 600 MW.

The government has launched a new call for projects under the authorization regime, with a total capacity of 455 MW. The program includes the Bezma solar power plant in Kébili Governorate (300 MW) and photovoltaic power plants in Beni Mhira and Tataouine (200 MW). Tunisia is also committed to the SoutH2 hydrogen corridor project and the ELMED electrical interconnection project with Italy.

To address peak consumption, the first unit of the Borj El Amri power plant, with a capacity of 312 MW, was restarted in September. The plant will be reinforced with the installation of a third gas turbine with a capacity of 300 MW. The program also includes extending the Radès D power plant and converting it to a combined cycle, with a capacity of 650-750 MW.

The national strategy includes improving the performance of existing power plants using air cooling systems, acquiring gas engines, and installing battery electricity storage systems. The national smart grid project is ongoing, with plans to generalize the use of smart meters. The 2027 budget plan also includes environmental initiatives, such as reinforcing cleanliness actions, supporting recycling and waste valorization, and extending the sanitation network to new areas.

The government aims to protect the coastline from marine erosion and cities from flooding. The 2027 budget plan includes implementing the Nationally Determined Contribution, the National Adaptation Plan, and the Climate Investment Plan, as part of the National Climate Policy Plan. These efforts will focus on supporting recycling, waste management, and environmental protection.

The 2027 budget plan reflects Tunisia's efforts to transition to renewable energy and reduce its carbon footprint. The plan includes a range of initiatives aimed at increasing the country's energy efficiency, reducing energy consumption, and promoting sustainable development. Key initiatives include reducing tariffs on solar panel imports, expanding the Energy Transition Fund, and investing in renewable energy projects.

Key points

• Reduced tariffs on solar panel imports to 10%
• Expanded scope of the Energy Transition Fund
• Increased focus on renewable energy and sustainable development