Tunisia: Derisking Renewable Energy Investment

This report by the NewClimate Institute analyzes how public derisking instruments can reduce the cost of capital and levelized cost of electricity (LCOE) for utility-scale wind and solar PV projects in Tunisia to help meet the targets of the Tunisian Solar Plan (TSP).

• Tunisia's Tunisian Solar Plan (TSP) targets the installation of 835 MW of solar PV and 940 MW of wind power by the private sector by 2030, aiming for renewable energy to comprise 30% of the power mix.
• Financing costs in Tunisia are significantly higher than in Germany; Tunisia has a cost of equity (COE) of 17% and a cost of debt of 8%, compared to Germany's 7% and 3% respectively. The primary drivers of these high costs are political risk, counterparty risk (reliability of the electricity buyer), and power market risk (regulation and transparency of electricity sales).
• For wind energy, a targeted package of public derisking measures costing EUR 104 million until 2030 could catalyze EUR 1.07 billion in private investment, reduce generation costs from EUR 7.2 cents to EUR 5.8 cents per kWh, create EUR 308 million in economic savings over 20 years, and reduce CO2 emissions by 21.6 million tonnes over 20 years.
• For solar PV, public derisking measures costing EUR 54 million until 2030 could catalyze EUR 0.53 billion in private investment, lower generation costs from EUR 7.1 cents to EUR 5.6 cents per kWh, generate EUR 149 million in economic savings over 20 years, and reduce CO2 emissions by 10.6 million tonnes over 20 years.

APA

NewClimate Institute (2018). Tunisia: Derisking Renewable Energy Investment. http://www.newclimate.org/resources/publications/tunisia-derisking-renewable-energy-investment-2018

Chicago

NewClimate Institute. Tunisia: Derisking Renewable Energy Investment. 2018. http://www.newclimate.org/resources/publications/tunisia-derisking-renewable-energy-investment-2018.

Wikipedia

{{cite report |author=NewClimate Institute |title=Tunisia: Derisking Renewable Energy Investment |date=26 June 2018 |url=http://www.newclimate.org/resources/publications/tunisia-derisking-renewable-energy-investment-2018 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2018tunisia, author = {{NewClimate Institute}}, title = {{Tunisia: Derisking Renewable Energy Investment}}, institution = {NewClimate Institute}, year = {2018}, month = jun, url = {http://www.newclimate.org/resources/publications/tunisia-derisking-renewable-energy-investment-2018}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }