Tunisia, a country where nearly all households have access to electricity, is working to improve its power supply after facing rotating power outages across the country during the summer of 2026. These outages were caused by a surge in electricity demand due to extreme heat, with temperatures reaching nearly 50 °C and leading to heavy use of air conditioning. Tunisia’s state electricity provider, Sonelgaz, and the Tunisian Electricity and Gas Company (STEG) are now planning to build a 1,400 megawatt (MW) power plant. Tunisian Energy Minister Slah Zouari announced the project after meeting with his Algerian counterpart, Mourad Adjal, in Algiers. The two countries have approved the project, and a technical team will soon visit Tunisia to discuss next steps. The total cost of the project has not yet been disclosed.
The idea for the power plant was first discussed in May between Mourad Adjal and Fayçal Tarifa, then CEO of STEG. During the summer, electricity demand in Tunisia reached nearly 6,000 MW at peak times, but the country’s electricity production capacity was only around 4,500 MW. This gap forced STEG to implement rotating power outages in July and August to manage the overload. Tunisia’s electricity system heavily relies on natural gas, which accounted for 91 percent of its electricity production as of the end of May, with only 9 percent coming from renewable energy sources. About 63 percent of Tunisia’s gas supply comes directly from Algeria, and an additional 11 percent is tied to the transit of Algerian gas to Italy through the Transmed pipeline. This means that nearly three-quarters of Tunisia’s available gas supply depends on Algeria. Tunisia also imports about 13 percent of its electricity needs from Algeria, which also experienced a record-breaking heatwave and electricity demand last summer.
Algeria is expanding its energy influence across Africa through its state electricity company, Sonelgaz. In June 2025, Sonelgaz opened a 40-MW power plant in Niger, fully funding and managing the project. Around the same time, Algeria signed a framework agreement with Côte d'Ivoire to cooperate on energy and renewable energy projects, including modernizing electricity networks. In May 2025, a Sonelgaz International team visited Chad to study the feasibility of a 40-MW power plant in partnership with the local company Tchad-Élec. This international expansion aims to strengthen Algeria’s role as a regional energy leader and support its neighbors in meeting growing electricity demands.
Tunisia and Algeria Plan Joint Power Plant Amid Energy Challenges
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