Tunisia's Energy Concessions Under Scrutiny
On the eve of the plenary session scheduled for April 28, 2026, at the parliament, dedicated to examining 5 photovoltaic power plant concession projects, the Tunisian Economy Observatory (OTE) sounds the alarm. The projects in question are located in El Khobna, Mezzouna (Sidi Bouzid), El Ksar, Segdoud, and Menzel El Habib, with a concession period of 20 years, renewable for 5 years, as agreed upon by the parties.
Questioning the Objectives
In a note titled "Renewable Energy Concession Bills: Announced Transition, Threatened Sovereignty," the OTE questions the objectives put forward by the authorities. The organization expresses reservations about these projects, estimating that they could affect national sovereignty and the country's financial balance.
Energy Deficit and Dependence
In a context marked by strong energy pressure, "the sector's deficit was established at around 11 billion dinars in 2025, split between 7.1 billion linked to petroleum product imports and 4.2 billion for natural gas," according to the OTE. In this context, renewable energies appear as a crucial lever to reduce energy dependence and secure national supply. While the executive highlights energy independence, cost reduction, and improvement of the STEG's financial situation, the Observatory believes that these contracts would benefit foreign investors more than the national interest.
Contractual Disputes and Arbitration
The OTE also highlights a sensitive point in the contractual framework: although the projects are carried out on Tunisian territory and subject to national law, disputes would be arbitrated in Geneva according to the rules of the International Chamber of Commerce. According to the Observatory, this implies the intervention of foreign arbitrators interpreting Tunisian law, with costly and potentially unbalanced procedures for the state.
Lack of National Interest
The organization estimates that these contracts are not sufficiently oriented towards defending national interests. They would, according to the OTE, be more structured in favor of financiers and project operators. The state, through the STEG, would thus be exposed to all risks and additional costs without real benefits in terms of energy sovereignty, which could increase its debt. On the contractual level, the agreements would guarantee the profits of foreign operators without technology transfer or local content obligation, limiting the impact on employment and national industry.
Environmental and Macroeconomic Impacts
The Observatory also points out the transfer of exchange risk to the STEG, as well as the effects of repatriating foreign currency over a period of more than 20 years, which could weaken the country's macroeconomic balances. It also mentions possible environmental impacts on natural and pastoral ecosystems.
Recommendations
In light of these findings, the OTE calls on deputies to reject the concession projects in their current form. It recommends organizing public hearings to rethink the national energy transition strategy, with stronger involvement of local actors and the industrial fabric. Furthermore, the Observatory proposes a revision of the 2015 legal framework, so that energy policy is subject to the same approval mechanisms as development plans. The goal, according to the OTE, would be to "make the energy transition an opportunity to strengthen internal technological and industrial capacities in this field, by engaging local economic actors and researchers."
