Tunisia and Algeria have agreed to undertake the studies required for the development of a 1.4 GW power plant in Tunisia. The project was first disclosed in May 2026, when Tunisia’s national utility STEG and Algeria’s Sonelgaz announced an agreement to jointly develop and build a 1.4 GW combined-cycle gas turbine (CCGT) plant (KEI, 27/05/2026).
The total investment amount has yet to be determined. Tunisia regularly faces challenges with its power system, with pressure particularly intensifying during the summer of 2026. At the time, the Tunisian Electricity and Gas Company (STEG) had scheduled rolling power cuts across several regions in an effort to maintain grid stability.
Tunisia remained a net electricity exporter until 2021, when it shifted to being a net importer. In 2025, electricity imports fell by 21% to 2.2 TWh, with most of the power supplied by Algeria (Enerdata Global Energy Research).
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