World Bank supports Tunisia reforms to unlock 2.8-GW renewables buildout

Nov 12, 2025 10:49 AM ET
  • Tunisia agreed World Bank backing for reforms aimed at enabling 2.8 GW of new wind and solar capacity by 2028.

Tunisia has secured World Bank support to fund reforms designed to enable 2.8 GW of new wind and solar capacity by 2028—an agenda that shifts focus from individual projects to the rules, institutions, and grid upgrades that make delivery at scale possible. The package targets faster permitting, clearer offtake frameworks, and investment in transmission so private capital can move from interest to final investment decisions.

Why reforms first? Tunisia’s solar and wind resource is robust, but timelines have been stretched by opaque approvals, grid bottlenecks, and limited bankable offtake options. World Bank-backed programs typically press on four levers: (1) streamlined, time-bound permitting with one-stop digital portals; (2) standardized PPAs with fair risk allocation and currency safeguards; (3) tariff and market reforms that clarify pass-through and reduce arrears; and (4) grid investments—substations, lines, and system-strength upgrades—to integrate variable generation without compromising reliability.

On the technical side, the next wave of builds will mirror global best practice. Utility-scale PV plants using high-efficiency modules and single-axis trackers, DC/AC ratios for annual yield, and plant controllers meeting stricter grid-code requirements for reactive power, ride-through, and ramp-rate controls. Wind projects will deploy modern turbines with advanced grid-forming capabilities. Co-located batteries—two to four hours—will become more common to shift energy into evening peaks, improve capture rates, and provide fast frequency response.

Execution will hinge on sequencing: prioritize shovel-ready zones where transmission is strong or expandable, anchor early auctions with transparent documentation, and lock long-lead electrical gear—transformers, switchgear, protection systems—whose availability often dictates schedules. Competitive procurement can pull in regional and international sponsors, while local content and skills programs ensure benefits land in Tunisian communities.

Environmental and social standards remain central to concessional finance. Expect rigorous impact assessments, biodiversity plans, stakeholder engagement, and clear decommissioning and recycling pathways for modules and balance-of-plant components.

If the reform package sticks, Tunisia can convert pipeline into COD at a sustainable cadence—reducing fuel imports, stabilizing prices, and laying groundwork for green industry and potential cross-border power trade.