Expanding renewable energy production can lead to significant gains in terms of economic growth by 2030 (WB)

Tunis: Tunisia can benefit from expanding renewable energy production which would extend to the whole of economy, with significant 1.1% to 1.75% gains in terms of economic growth by 2030, based on different scenarios for the development of renewable energy production in the country, reads a World Bank (WB) report. The report reviews in detail the current economic challenges and opportunities in Tunisia with a special focus on the ambitious renewable energy development programme. According to the report a deep decarbonisation scenario is particularly beneficial for the economy in the short term, as end-user sectors are likely to benefit from strengthened decarbonisation policies, resulting in lower energy costs. Although all sectors benefit, industry and agriculture fare particularly well, given their greater energy dependence compared with services. Public debt rises in all scenarios, but not significantly as most decarbonisation investments are expected to carried out by the private sector. The bulk of th ese investments are expected to be covered by the private sector given the significant cost advantage of renewables over fossil fuel in Tunisia. "However, an adequate regulatory framework should be in place to favor such investments," the WB added. These investment needs are estimated at around US$ 27-35 billion by 2050. Although the Tunisian government has begun to undertake regulatory reforms to improve the performance of the country's electricity sector and the attractiveness of the renewable energy programme to private investors, the WB said that it is crucial to accelerate these efforts in order to achieve the ambitious renewable energy targets and reap the resulting economic benefits. This would require a number of measures, including strengthening coordination between the various parties involved in the projects, and monitoring and speeding up the implementation of ongoing programmes, which is important for the country's credibility and for strengthening governance in the renewable energy sector. T here is also need to simplify procedures for access to land, speeding up the setting up of an independent regulatory authority to reassure investors and guarantee transparent and fair access to the network, as well as modernising the Tunisian Electricity and Gas Company (STEG) and restoring its financial viability. Source: Agence Tunis Afrique Presse