Tunisia: Derisking Renewable Energy Investment

The study identifies that high financing costs in Tunisia, driven by power market, counterparty, and political risks, inflate the cost of renewable energy. By implementing targeted public derisking measures, Tunisia could significantly lower generation costs for wind and solar PV, catalyzing over EUR 1.6 billion in private investment and reducing carbon emissions by 32.2 million tonnes of CO2 over 20 years. The analysis concludes that the economic savings from lower capital costs outweigh the public expenditure required for these instruments.

• Tunisia's renewable energy investment environment is marked by high financing costs compared to countries like Germany; specifically, the cost of equity is 17% and the cost of debt is 8%, whereas in Germany they are 7% and 3% respectively.
• Three primary risk categories are identified as the main drivers of increased financing costs: political risk, counterparty risk (the reliability of the electricity buyer), and power market risk (related to regulation and electricity sale mechanisms).
• For wind energy, a public derisking package costing EUR 104 million by 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, and save EUR 308 million over 20 years while reducing CO2 emissions by 21.6 million tonnes.
• For solar PV, public derisking measures costing EUR 54 million by 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, and generate EUR 149 million in savings over 20 years, reducing CO2 emissions by 10.6 million tonnes.
• The Tunisian Solar Plan (TSP) aims for the private sector to install 835 MW of solar PV and 940 MW of wind power by 2030 to achieve a 30% share of renewable energy in the power mix.

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} }