The World Bank has announced a significant investment in Tunisia’s energy sector, launching the TEREG programme with a funding commitment of $430 million. This new effort is designed to help remake the nation’s energy future by attracting about $2.8 billion in private investment. During the next five years, TEREG will increase Tunisia’s solar and wind renewable energy portfolio. This ambitious initiative will create thousands of jobs and help lower long-term electricity supply costs.
The TEREG programme is uniquely positioned to address more energy needs and climate change challenges. By 2028, it has a goal to procure 2.8 gigawatts (GW) of new solar and wind energy resources. The focus of the new initiative is to help reinforce the capacity of the Tunisian Company of Electricity and Gas (STEG). It aims to improve energy sector governance and transparency. The programme is a strong illustration of a deep partnership with Tunisia, in support of its 2035 sustainable development vision.
Economic Impact and Job Creation
The TEREG programme would generate more than 30,000 jobs. The majority of these opportunities will be created in the construction phase of a variety of renewable projects. This sudden boom in job creation is projected to jumpstart local economies and offer vital assistance to communities throughout Tunisia.
Beyond just putting people to work, the initiative is expected to save electricity supply costs by as much as 23% — an astronomical figure. This $77 million reduction will mean big savings for consumers. This, in turn, will improve the entire economy so that businesses can succeed while enjoying lower energy bills.
Commitment to Renewable Energy
The programme of TEREG further highlights Tunisia’s dedication to quickly advancing the deployment of renewable energy technologies. Tunisia is taking strong action to develop its solar and wind capacity. With this progressive step, the country plays its part as a global leader in the clean energy revolution.
Alexandre Arrobbio, a representative from the World Bank, emphasized the importance of this initiative:
“By fostering renewable energy development, TEREG will strengthen Tunisia’s position in clean energy, creating economic opportunities and ensuring long-term energy security. This project reflects our strong partnership with Tunisia and supports its sustainable development goals.”
Under this program, $30 million is available for concessional financing. This funding enables the nation to better leverage private investments and increases the reliability and affordability of the country’s electricity supply.
Environmental Considerations
A key aspect of the TEREG programme is its commitment to tackling climate change by building clean energy economies. Amira Klibi highlighted this aspect, stating:
“This is the first project to benefit from the World Bank’s Framework for Financial Incentives, receiving rewards for its size and long-term benefits in recognition of its impact on reducing greenhouse gas emissions.”
The TEREG initiative is designed to help Tunisia’s energy infrastructure keep pace with a changing world. It’s addressing the nation’s most pressing environmental issues associated with fossil energy. By promoting renewable energy development, Tunisia can significantly mitigate its carbon footprint while ensuring energy security for generations to come.