Energy

Tunisia’s energy balance shifted from surplus to deficit in 2000, and the country has since remained a net importer of energy. With domestic production falling and demand rising, Tunisia is looking to diversify its energy mix through renewables, higher imports and by promoting energy efficiency through a gradual scaling back of subsidies. Overall, attempts to promote efficiency and alternative energies have moved slowly in Tunisia, in part due to the post-revolution uncertainty of recent years, a reflection of the a high degree of state intervention in the energy sector. Despite challenges, Tunisia’s efforts to establish a more efficient, diversified energy portfolio could move forward in 2016. The split, in January 2016, of Tunisia’s Ministry of Industry, Energy and Mines, and the subsequent formation of the Ministry of Energy, could serve to refocus attention, previously shared with industry and mining, back on the energy sector. It is also true that if the new ministry is able to deliver a more cohesive sector strategy, as called for by industry players, this could help reduce the country’s reliance on imports and allow it to tap into the underutilized potential of its hydrocarbons and renewable resources.