The condition of Tunisia’s electricity sector has been steadily declining in recent years.
The government set a goal to diversify its energy sources away from imported hydrocarbons and provide cleaner and less expensive electricity to the Tunisian people and businesses with an ambitious target to achieve 30 percent renewables by 2030. In parallel, the government wanted to gradually phase out subsidies in a way that was least disruptive to the economy, socially sustainable, and politically feasible.
An ESMAP-funded analytical work helped the government design a holistic reform that tackled subsidies while addressing political economy concerns.
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