Search
Close this search box.
Search
Close this search box.

State Focuses on Hydrocarbons Sector Development Through Investment-Friendly Legislation

Tunis: The State is working to develop the hydrocarbons sector through the enactment of investment-friendly legislation and the amendment of the hydrocarbons code, as part of efforts to strengthen energy sovereignty, Prime Minister Sarra Zaafrani Zenzri affirmed. Presenting the draft State Budget and Economic Budget for 2026 at a joint plenary session of the Assembly of People's Representatives (ARP) and the National Council of Regions and Districts (CNRD) held Wednesday at Parliament, Zenzri noted that hydrocarbon production declined by nearly 30% during the 2021-2025 period.

According to Agence Tunis Afrique Presse, this decline is due to reduced profitability in key production fields such as El Borma and Achtart, as well as major companies' reluctance to invest, she pointed out. These factors have led to an energy deficit and a sharp drop in energy independence, from 93% in 2010 to about 41% in 2024.

To address this energy gap, the Prime Minister stated that in 2026 the State will work to resume exploration and field development activities by selectively promoting profitable concessions and restoring investor confidence through shorter authorisation procedures. She added that efforts will focus on accelerating the energy transition and generating electricity from renewable sources, with the goal of reaching 35% of electricity production from renewables.

According to Zenzri, renewable energy projects for electricity generation are progressing steadily. She recalled that during the first half of 2025, several solar power generation projects were awarded under the concession and authorisation regime, with a total capacity of 800 megawatts, including three projects expected to begin operation by the end of 2025, with a combined capacity of 200 megawatts. These include a 100 MW photovoltaic power plant in Metbasta (Kairouan), and two 50 MW solar plants in Sidi Bouzid and Tozeur.

Licences have also been granted for four new solar power generation units. Two combined-cycle power plants are currently operational in Sfax, alongside ongoing projects for licenced and self-produced electricity generation. The Prime Minister emphasised that the renewable energy sector has become one of the most attractive areas for investment, with declared investments reaching about 1.66 billion dinars between January and September 2025, accounting for 28% of total declared investments.

She noted that the progress made in implementing the national energy transition strategy would not have been possible without major investments and partnerships with experienced investors. Tunisia has chosen to adopt various mechanisms provided by national legislation, including the concession system, to achieve its strategic objectives in this field within the set deadlines, she added.

In pursuit of sustainable energy supply, cost control and increased support for renewable investments, Zenzri highlighted the continued implementation of the national energy strategy roadmap. This includes the Tunisia-Italy electricity interconnection project (ELMED), which will make Tunisia a regional hub for clean energy, as well as the Energy Transition Programme, focused on renewable-based energy production with a total value of 343 million dinars.