A scenario analysis of potential long-term impacts of COVID-19 on the Tunisian electricity sector

The COVID-19 pandemic has affected the economy of Tunisia, like that of many other countries. With electricity consumption dropping, consumption patterns changing, international fuel prices oscillating and uncertainty raging, the pandemic has affected not least the planning of investments in electricity supply. Although the government seems unlikely to revise the decarbonisation targets downwards, questions arise on whether the investments planned before the pandemic are still relevant in the changed global landscape and what effects they may have on the country's economy. In this study, we analyse post-pandemic scenarios for the electricity supply system of Tunisia with an energy-economy modelling framework, soft-linking the energy modelling tool OSeMOSYS and an open source Input-Output model. We extract insights on the cost-competitiveness of different – previously planned and new – electricity supply solutions and their impacts on job creation and loss in the entire economy. We find that renewable solutions based on solar photovoltaic remain highly competitive with gas-fired generation under different projections of gas prices and that several low-carbon and energy efficiency solutions have high potential for job creation. We also find that more ambitious investments in renewables and energy efficiency are needed to take Tunisia towards the path of deep decarbonisation.