The World Bank and the Tunisian Government have signed a US$430m financing agreement for the Tunisia Energy Reliability, Efficiency, and Governance Improvement Program (TEREG) (World Bank, 11/11/2025). The 5-year program aims to mobilise US$2.8bn in private investment to develop 2.8 GW of new solar and wind capacity by 2028, reduce electricity supply costs by 23%, improve the national electricity utility STEG’s cost recovery from 60% to 80%, and cut state subsidies by TND2bn (US$680m).
The country is heavily reliant on fossil fuel imports to meets its energy needs, notably natural gas, which accounted for 94% of power generation in 2024, according to Enerdata’s Global Energy & CO2 data. Gas accounts for around half of primary energy consumption, with local production representing less than a third of domestic consumption. The rest is imported from Algeria, including through a gas transit agreement to Italy.
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