The energy sector in Tunisia includes all production, processing and, transit of energy consumption in this country. The production involves the upstream sector that includes general oil and gas, the downstream sector that includes the only refinery in Tunisia and most of the production of natural gas, and varied electrical/renewable energies. Renewable energy has been a strong point of focus for Tunisia as they look to optimize their green energy sources and advance their developing country. The Tunisian government has partnered with Russia and France in hopes of establishing nuclear energy as a viable alternative to fossil fuels and taking up a nontrivial chunk of the energy production in Tunisia. This is expected to be accomplished in the 2020s.
Oil and gas upstream sector
Tunisia is a small producer of oil and natural gas. Oil production began in 1966, at 118,000 barrels/day in 1980, and reached 63,000 barrels in 2015. The country is a net importer from the year 2000 onwards. The country's main deposit is also the first to be discovered. : El Borma, in 1964, on the Tunisian-Algerian border.
The Gulf of Gabes offers offshore production centered on the Ashtart deposit, put into production in 1974 by, at the time, Elf Aquitaine. Gas production increased in the 2000s thanks to two offshore deposits, Miskar (producing from 2006) and Hasdrubal (2009). These two deposits are now experiencing a natural decline in production.
The Zarat deposit is scheduled to come into service around 2020 and boost national production somewhat.
Downstream sector
Refining
The only refinery in the country, managed by the Tunisian Company of Refining Industries, is located in Bizerte. Its capacity is 34,000 barrels / day, which is a much lower production than the country's consumption, which therefore imports refined products, diesel chiefly. Refined petroleum is essentially imported too.
Transit of natural gas
The Trans-Mediterranean Pipeline, one of the gas pipelines that allow the export of Algerian gas to Italy, crosses Tunisian territory. It operates since 1983. In return for the crossing of its territory, Tunisia is entitled to 5.625% of the gas, in kind or in money, in accordance with a treaty of 1977. The capacity of the Trans-Mediterranean Pipeline is increased gradually, increasing also the Tunisian quota which, added to the national production and gas bought directly to Algeria, ensures the consumption of the country.
Consumption
According to the Energy Information Administration, Tunisia's consumption in 2015 was 98,000 barrels/day.
Natural gas consumption is in the order of 6.5 km3, of which more than half is imported via the Trans-Mediterranean Pipeline. 70% of the gas is used for the production of electricity, the rest is sold at subsidized prices.
Electrical sector and renewable energies
The International Energy Agency reports for 2014 an electricity production of 19 TWh, compared to 10.5 TWh in the year 2000. The Tunisian Company of Electricity and Gas (STEG), a public company, ensures the three quarters of production. The network operates at 50 Hertz and the voltage at the domestic level is 230 Volts.
Virtually all Tunisian electricity (18 TWh) is produced by thermal power plants burning natural gas, the largest of which is in Sousse. Wind energy is the second largest source of electricity in the country; a capacity of 305 MW has been installed in a few years.
STEG has been subsidizing consumer electricity prices since 2004 (due to 2000s energy crisis and weak national currency). As of 2012, average retail prices were almost twice lower than average production costs, and state energy subsidies totalled to 20% of public budget and 9% of the GDP. Starting from 2014, government had to decrease the amount of subsidies.
The British company TuNur Ltd proposed a major project in solar energy in 2010s, which would consist in building in stages 4,500 MW of thermodynamic solar power plants in southern Tunisia, and export electricity to Malta first, then Italy and finally France. First utility-scale photovoltaic plant (10 MW, in Tozeur) was commissioned in 2019 on German money.
Tunisia aims to generate 30% of its electricity from renewable sources by 2030. The country currently gets only 3% to 6% of its electricity from renewable sources, mostly from wind and hydro. Solar energy capacity is at 35 megawatts (MW).