The World Bank has announced a $430 million funding program over five years to support Tunisia in modernizing its electricity sector and expanding its renewable energy production. This initiative, called TEREG, aims to strengthen the country’s position in clean energy, create economic opportunities, and ensure long-term energy security, according to Alexandre Arrobbio, the World Bank’s Country Manager for Tunisia.
The funding will accelerate the deployment of solar and wind energy, improve the performance of the Tunisian Electricity and Gas Company (STEG), and enhance governance within the energy sector. The objective is to attract $2.8 billion in private investments to add 2.8 gigawatts of new capacity by 2028 while generating over 30,000 jobs, primarily during the construction of these projects.
This initiative will also contribute to reducing electricity supply costs by about a quarter in a country with limited hydrocarbons and reliant on imports, and to decrease public subsidies for energy.