The Japanese Embassy in Tunisia announced on Friday that a 100 MW photovoltaic project in Sidi Bouzid has been selected to receive a 2 billion yen (42 million dinars) grant from the Japanese government.
The project will be implemented by a Japanese-Norwegian joint venture, in accordance with the agreements signed on March 24 2025 with the Tunisian Government and the “Société tunisienne de l’électricité et du gaz” (STEG).
This funding falls under the Carbon Credit Exchange Mechanism (CCEM), established through a Japan-Tunisia agreement signed during TICAD8 in August 2022. It marks the third such initiative, following two ongoing solar projects in Sidi Bouzid and Tozeur.
In March 2025, agreements were signed for four new solar projects with a total capacity of 500 MW, to be developed in: Sidi Bouzid (300 MW), Gafsa (100 MW) and Gabes (100 MW).
These projects are part of Phase 1 of a 1,700 MW renewable energy tender under concession agreements.
Once operational by 2027, they will generate 1,100 GWh/year (5% of Tunisia’s electricity output, save 250,000 tons of natural gas/year (~$125 million annually) and reduce electricity production costs by 200 million dinars/year.
10 new solar contracts signed for energy transition
On December 10, 2024, Tunisia took a major step in its energy transition by signing 10 contracts for small-to-medium-scale solar projects (1-2 MW each) under a licensing system.
According to the Secretary of State for Energy Transition, these projects are part of the National Program for the Development of Electricity Production from Renewable Energy Sources. This program operates under three frameworks.
-Concessions for large-scale projects
– Licensing system for medium/small projects
– Self-production for private sector participation
The Secretary of State said that these new initiatives represent a total capacity of 17 megawatts and an investment of around 40 million dinars. The projects will be located in the governorates of Sidi Bouzid and Medenine, reinforcing the role of these regions in the country’s energy transition.
This first series of projects marks the start of an ambitious program to deploy solar installations under the licensing system.
The Ministry launched a fifth call for projects on October 14, following the implementation of a number of important reforms. These include revising the standard contracts and updating the feed-in tariffs in consultation with public and private stakeholders.
The aim of the call for projects is to encourage the development of solar power plants of different sizes, with the feed-in tariff set at 217 millimes per kilowatt hour for 1 megawatt projects, 201 millimes for 2 megawatt projects and 143 millimes for 10 megawatt projects. In total, a capacity of 200 megawatts is targeted, reinforcing Tunisia’s commitment to greener, more sustainable energy production.
