Country Profile Tunisia - Report FINAL · PROSOL PROSOL Elec Power Purchase Agreement Solar Thermal Program Solar Program Photovoltaic (PV on the roof) PST Plan Solaire Tunisien(Tunisian

CountryProfiles

Tunisia

November2016

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TableofContentsABSTRACT..........................................................................................................................................................................................11 MACROECONOMIC&GLOBALENERGYCONTEXT.......................................................................................................................21.1Macroeconomiccontext.......................................................................................................................................................................21.2GlobalEnergymarket............................................................................................................................................................................4

2 POWEROVERVIEWINTUNISIA....................................................................................................................................................52.1 Legislativeandregulatoryframework..........................................................................................................................................62.2 Electricitykeystakeholders...............................................................................................................................................................82.3 PowerMarketStructure.......................................................................................................................................................................92.4 PowerDemand.......................................................................................................................................................................................102.5 PowerSupply..........................................................................................................................................................................................112.6Grid&Infrastructure...........................................................................................................................................................................132.7 Electricityprices....................................................................................................................................................................................15

3 RENEWABLEENERGY&ENERGYEFFICIENCY..........................................................................................................................163.1 CurrentSituation...................................................................................................................................................................................163.1.1 Renewables.........................................................................................................................................................................................163.1.2 EnergyEfficiency..............................................................................................................................................................................19

3.2 Potential....................................................................................................................................................................................................213.2.1 EnergyEfficiency..............................................................................................................................................................................213.2.2 Renewable...........................................................................................................................................................................................21

3.3 FrameworkforRE&EEdevelopment.........................................................................................................................................243.3.1 Strategy,TargetsandKeyIssues...............................................................................................................................................243.3.2 Legislativeandregulatoryframework...................................................................................................................................263.3.3 FeedinTariff......................................................................................................................................................................................27FocusonIPP...........................................................................................................................................................................................................

3.4 FutureProjectsDevelopment..........................................................................................................................................................283.4.1 RenewablesProjects.......................................................................................................................................................................28FocusonthefutureinterconnectioncableTunisia-ItalybyTERNA...........................................................................................3.4.2 EnergyEfficiencyProjects............................................................................................................................................................32

4 SOCIAL&ENVIRONMENTALCONTEXT.....................................................................................................................................334.1 Social...........................................................................................................................................................................................................334.2 Environment............................................................................................................................................................................................33

ANNEX1-TOTALFINALENERGYCONSUMPTIONINTUNISIA–SYSTEMOVERVIEW........................................................................ANNEX2-ENERGYPRODUCTIONANDIMPORTINTUNISIA-SYSTEMOVERVIEW............................................................................

Abbreviations

ANME AgenceNationalepourlaMaîtrisedel’Energie(NationalAgencyforEnergyConservation)

CCGT CombinedCycleGasTurbine

CSP ConcentratedSolarPower

DSO DistributorSystemOperator

EE EnergyEfficiency

EIB EuropeanInvestmentBank

EPC EngineeringProcurementConstruction

EU

FNME

FTE

EuropeanUnion

NationalFundforEnergyManagement

FundfortheEnergyTransition

FiT Feed-in-Tariff

GDP GrossDomesticProduct

GW

IEA

Gigwatt

InternationalEnergyAgency

IPP IndependentPowerPurchase

JICA JapanInternationalCooperationAgency

KWh KilowattHour

MIT MinistryofIndustryinTunisia

MoU MemorandumofUnderstanding

MW

MWh

Megawatt

Megawattperhour

O&M

ONE

OperationandMaintenance

ObservatoireNationaldel’Energie(NationalEnergyObservatory)

PPA

PROSOL

PROSOLElec

PowerPurchaseAgreement

SolarThermalProgram

SolarProgramPhotovoltaic(PVontheroof)

PST PlanSolaireTunisien(TunisianSolarPlan)

PV Photovoltaic

RE

RFP

RenewableEnergy

RequestforProposal

SPV SpecialPurposeVehicle

STEG

STEGER

TOE

SociétéTunisienned’ElèctricitéetdeGaz(TunisianCompanyforGas&Electricity)

STEGRenewableEnergy

TonofOilEquivalent

TPA ThirdPartyAgreement

TSO TransmissionSystemOperator

TWh TerawattHour

ListofFigures

Figure1:TunisianGDPGrowth&Prospectives........................................................................................................................2Figure2:Tunisia'sCollapsingOilProduction.............................................................................................................................3Figure3:TunisiaEnergyBalance....................................................................................................................................................4Figure4:GlobalEnergyProfileTunisia.........................................................................................................................................4Figure5GlobalEnergyProductioninTunisia...........................................................................................................................5Figure6:PowerproductionMix2014(19TWh).....................................................................................................................5Figure7:TunisianElectricityMarketOverview........................................................................................................................9Figure8:ConsumptionrepartitionbySectorMars2015(HT&MT)..............................................................................10Figure9:ElectricityConsumptionevolution&repartitionbysector...........................................................................10Figure10:Tunisianpopulationevolution&Energyconsumptionpercapita...........................................................10Figure11:ElectricityProduction2015perproducerinGWh..........................................................................................11Figure12:RepartitionofSTEGElectricityProductionGWh.............................................................................................11Figure13:EvolutionoftheElectricityProductionbyProducer.....................................................................................11Figure14:Electricityproductionpersources..........................................................................................................................12Figure15:InstalledPowerCapacity2014.................................................................................................................................13Figure16:TunisianElectricityGrid..............................................................................................................................................14Figure17:RenewableElectricityGrowth..................................................................................................................................16Figure18:PartofrenewableintheelectricityProduction................................................................................................16Figure19:RenewableinstallationinTunisia2016...............................................................................................................16Figure20:BizerteWindFarm(Kchabta)..................................................................................................................................17Figure21:Sidi-DaoudWindFarmpositionmap....................................................................................................................17Figure22:BizerteWindFarm(Kchatba)..................................................................................................................................18Figure23:BizerteWindmillModels(Kchabta).......................................................................................................................18Figure24:EnergyIntensityevolutioninTunisia....................................................................................................................20Figure25SolarEnergyPotential2016(Topography/GlobalHorizontalIrradiance/DirectNormalIrradiance)...............................................................................................................................................................................................21Figure26:YearlyTendencyofsolarIrradiation.....................................................................................................................21Figure27:PVPotentialproductionperMonth........................................................................................................................22Figure28:WindPotentialinTunisia2016(Terrain/Windspeed/PowerDensity)...............................................22Figure29:WindSpeedFrequecyTunisia2016.......................................................................................................................23Figure30:YearlywindspeedCycle(normalized)..................................................................................................................23Figure31:LocationwithWindPotentialinTunisia..............................................................................................................23Figure32:ERInstalledCapacityMW...........................................................................................................................................24Figure33:PercentageofREintheenergyMix........................................................................................................................24Figure34:KeysforthesuccessoftheTunisianstrategy.....................................................................................................25Figure35:STEGRenewableProjects...........................................................................................................................................28Figure36:InstallCapacityEvolutionaccordingtotheTunisianSolarPlan...............................................................29Figure37:CurrentandPlannedtransmissionconnectionwithTunisia......................................................................30Figure38:ImpactofRE&EEprojectsonCO2emissionsinTunisia.............................................................................33

ListofTables

Table1:Tunisia-CountryIdentity.................................................................................................................................................2Table2:Tunisia-EconomicKeyIndicators................................................................................................................................3Table3:Tunisia-EnergySectorKeyIndicators.......................................................................................................................3Table4:PowermarketOverviewTunisia-KeyData.............................................................................................................5Table5:LawclassificationbyTopics.............................................................................................................................................7Table6:MainEnergyTunisianActors...........................................................................................................................................8Table7:TunisianPowerInstallation(Exceptsolarfacilities)..........................................................................................13Table8:TunisianElectricityTariff2014....................................................................................................................................15

AbstractIn recent years, Tunisia has set in motion an energy transition as a strategy to deal with a changingeconomic and energy context. Population growth and depleting gas resources have had a significantimpactonthecountry’senergybalance.In2001,thecountrybecameanetenergyimporteraftermanyyearsofsurpluspowergenerationandthegapbetweenproductionanddemand isgrowingeveryyear.Tunisia’s energy dependency reached 40% compared to previous years and this number will likelyincreaseinthefuture.Moreover,thistrendwillalsohaveanimpactonenergysecurity.Consequently,thedevelopmentofrenewableenergyhasbeenseenasan importantsolution forsecuringTunisia’senergyfuture. That iswhy in recent years the country hasmade visibleefforts to support the deployment ofrenewable and energy efficiency projects. Those efforts are alignedwith theambition revealed on thenationalstrategy toget30%ofenergygeneratebyrenewableand30%reductionof theprimaryenergyconsumptionby2030.Tunisia has already demonstrated its capacity to develop strategic energy efficiency projects withappropriatesupportsincethecreationoftheANMEin1985,thecountry’snationalenergyconservationagency.Moreover,renewableenergyfacilitieshavestartedtobedrawnupbytheenergyactorsSTEGandSTEG-ER, main energy company in Tunisia. Current installed renewable energy capacity represents245MWofwind and68MWofHydropower in 2016. However, the country has to maintain efforts toreachitsambitioustargetsby2030.Indeed,Tunisia’srenewableenergypotential–particularlysolarandwindenergy-isimportantinlightofopportunitiesforeconomicgrowthandpossibleforeigninvestment.Thenational energyproducer anddistributor, STEG, alreadyhas several projectsplannedout forwindandsolarinthenearfuture.However,Tunisiaisalsohopingthatforeigninvestors’projectswillplayanimportant role on renewable energy development for the country. In order to facilitate projectsdevelopmentandattractforeigninvestment,theministerofenergyisacceleratingtheelaborationoftheframeworkforrenewableenergyprojects’ implementation.Moreover,anexpansionofthegridcouldbenecessaryfortheintegrationoflarge-scalerenewableenergyprojects.Efforts were made on regulatory and policy frameworks to support renewable energy integration. In2012, Tunisia’sMinistry of Energy,Mines and Renewable Energies, decided to create a specific law tocoverrenewableenergyprojectdevelopment.Afterthreeyearsofreflexiononitselaboration,thelawwassubmittedforapprovalonthe15thofSeptember2015.InAugust2016,theTunisiangovernmentapprovedthedecreeofapplicationoftheLawN°2015-12.Thisannouncementfinalizesthelegal frameworkforthedevelopmentofrenewableenergyprojectseagerlyawaitedbyforeign investors.Theelaboration ofthefeed-in-Tariffisthenextimportantstep,speciallyforthedeploymentofinvestorsprojects.ThistariffiscurrentlythemaingroundsforthoughtfortheministryandcentralenergyactorsofTunisia.Tunisia’sambitionregardingthedevelopmentofrenewableenergyandtheattractionofforeigninvestorstodevelopprojects isstrongandevident.Drivenbytheneedtoreducetheirenergydependencyandtoincrease energy security, Tunisia’s energy stakeholders are making a continued effort to align theirprojectstothenationalstrategyinordertoreach30%ofenergygeneratebyrenewableby2030.

RES4MED–RenewableEnergySolutionsfortheMediterranean

2

1 Macroeconomic&GlobalEnergyContext

1.1 MacroeconomiccontextTunisia isacountryofNorthAfrica,sharing965kilometersofboundarieswithAlgeriatothewest,459kilometerswithLibyaon the southeast andaborderwith theMediterraneanSeaonthenorthandtheeast.TheTunisiancapital,Tunis,islocatedinthe north-east of the country. The total area of the country isabout164,000 kilometers, with50%of the land used foragriculture (8.7 millions of hectares). The Sahara desertrepresentsmorethan30%ofthecountry,whiletheremaininglandsarecomposedofmountainsandplainswithfertilesoil.In2015, the population of Tunisia reached 11,107,800,following an annual growth rate of 1%. About 63% of thepopulation lives in urban settlements. The proportion ofmenand women in Tunisia is stable and balanced, but the younggeneration(between0-14yearsold)representsonly23%oftheoverallpopulation.

Table1:Tunisia-CountryIdentitySource:WorldBank&IEA

Reaching43.045 Billion USD in 2015, the GDP of Tunisia has fallen compared to the previous year(47.603BillionUSDin2014).TheeconomyofTunisiahasalwaysbeendiversified,drivenbyagriculture(olives,dates...),minesandenergyresources (phosphateandhydrocarbon), tourismandmanufacturingindustry (clothes and food). Finally, internal consumption remains the primary driver of the Tunisianeconomy.However,since2012,theGDPgrowthrateofTunisiahasbeen falling, reaching 0,8% in 2015. This negativetendency is mainly due to the decrease of hydrocarbonproduction at the beginning of 2015, coupled with thecessation of phosphate extraction, following socialconflictsandpolitical instabilityinthecountry.Duringthesame periods, there was no compensation made by agrowth of activities in agriculture, services andmanufacturing industry. Moreover, the touristic sectorrepresenting 7% of the GDP has also decreasedsignificantly,achieving35%fewerrevenuesifcomparedto2014. Furthermore, while inflation reached 9% in theearly1980s, itdecreasedto3,6% in2015,andtherateof

Item Data Date&Source

Capital Tunis

Languages Arabic(TunisianArabic/Chelba(south)/French(largescaleusage))

Area 164,000km² 2015

AgricultureArea 50% 2015

DesertArea 30% 2015

Population 11,107,800 2015

PopulationGrowthrateperYear 1% 2015

Density 65hab/km² 2014

IDH 0.721 2014

Figure1:TunisianGDPGrowth&ProspectivesSource:AdaptedfromtheWorldBankGroup

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5

InFigure5,thedecreaseofoilproductionisclearly visible. Natural gas generationincreased around 1995 in order tocompensate the oil decrease, but since thistime the production has remained mainlystable, while the demand has been stedilyincreasing. Since 2010, the global energyproductions has started to decrease,worsening the gap between production anddemand.

2 PoweroverviewinTunisiaIn2013,Tunisiastarteditsenergytransitionprocessfocusingon energy efficiency and renewable energies. The goal ofTunisia is to reduce the primary energy demand of 30%by2030andtodeveloprenewable integrationtoupto30%by2030. Moreover, on September 16th, 2015 at the COP 21TunisiahasexposeditsobjectivesregardingCO2emissionfor2030. The country aims to decrease the carbon intensity by41% compared to 2010. In this context, the Juridicalinstitutions of Tunisia have created on May 11th, 2015 thelaw n°2015-12 to support renewable development andenergytransition. However, the current power system poses some challengesforTunisia. Inonehand, thedependenceon conventionalpower and the difficulties in balancing the system (seeFigure 3 ); in the other hand, the fluctuations in globalenergypricesimpactingtheinvestmentpossibilities.The power market of Tunisia is managed mainly by the STEG is currently driven by a powergenerationcomposedat94%fromNaturalGassources.However, theexpansionofrenewableenergygenerationclearlydisplaystheambitionofTunisiaeffectivelyimplementanenergytransition.

Table4:PowermarketOverviewTunisia-KeyData

Source:Enerdata,IMFApr2016,REN21,EnelEstimates,AgenceNationalepourlaMaîtrisedel’Energie

TunisianPowerMarket-OverviewItem Data(2014)ElectricityDemand 18.35TWhElectricityDemandpro-capita 1.7MWhElectricitydemandgrowthrate2014-2020 3.8%(p.a.)TotalPowerGeneration 19TWhTotalInstalledCapacity 4.8GWElectrificationrate 99,6%

Wind4%

Solar0,1%

Oil2%

NaturalGas94%

Hydro0,3%

Figure6:PowerproductionMix2014(19TWh)

Source:ENELGreenPower

Figure5GlobalEnergyProductioninTunisia

Source:IEA


6

2.1 LegislativeandregulatoryframeworkThelegislativeandregulatoryframeworkonenergyinTunisiagovernstheentiresector,providinganall-encompassingsetofrules.Theincreasinginterestofthecountrytodeveloprenewableenergyitisclearlydisplayed through the careful elaboration of laws and decrees. Indeed, in 2009 the renewable legalframeworkstartswiththeintroductionoftheconceptinlawN°2009-7text.ThentheministrydevelopedtheGridCode in2011 to specify the conditionof connection fromRenewable to theNationalGrid.Tocover all the aspects of renewable in 2015, the Law for renewable N°2015-12 is submitted. At themoment, theTunisian's legal frameworkknowa turningpoint,with the approbation of the applicationdecree of the Law N°2015-12 in August 2016, finalizing the legal framework of Tunisia regardingRenewable Energy to support and promote renewable energy projects. This chapter will present thecentraldecreesandlawsregardingenergy,toachieveacompleteunderstandingofthelegislativecontextin Tunisia. A focus on the renewable energy legal frameworkwill be the subject of a separate chapter(Section3.3.2,p26).Firstly,regardingEnergyproductionandIndependentPowerProduction(IPP),statemonopolystatusonpowergenerationhasbeeneliminatedbytheLawN°96-27openingthegenerationmarkettoIPPonApril 1st ,1996. This provision provides the right of independent entities to produce energy with thecondition to sell it only to STEG. However, STEG maintains the monopoly on transmission anddistribution.Withinthisframework,theimplementationofthefirstprivatepowerplantwasdonein2002byBOOmode(BuildOwnandOperate).TheregulatoryframeworkofTunisiasupportscogenerationtechnologydevelopment.Indeed,theANMEhasdevelopedmeasures tosupport thoseprojects, suchas thepossibility toenter intobank loanswithfavorableconditions.However, several requirements are needed to qualify for these programs, slowing down cogenerationprojects. For example, promoterswill need to achieve 60% efficiency of their installation in one year.Moreover,thesaleoftheexcesselectricitytotheSTEGislimitedto2/3oftheproductionforprojectswithacapacityinferiorto3MWandhalfoftheproductionfortherest.Then,thepromoterwillhavetopaythecostsofconnectiontothegrid.Finally, thesellingpriceofelectricity is indexedtothepurchasepriceofnatural gas (for companies) and set according to the four-time shift (daytime, peak hours, evening &night).Somelawsarededicatedprimarilytoenergyself-production installations(cogenerationorrenewable),determiningtheconditionofproductionandsaleofelectricitysurplus.Accordingtothelaw,theownerofrenewableorcogenerationfacilitiesprovidingenergyforownconsumptioncansellhisexcessproduction,but such amount cannot bemore than 30% of the annual production. For biomass installationwith acapacity inferior to 15MW, an extension of this production could be possible.Moreover, self-producershave to pay a connection fee and the technical advisory committee,while theministry of energymustapprovetheinstallation.The Law N°2004-72 published in 2004 is the basis for the energy efficiency project development,allowingthecreationofanewlawandsupportforenergyconservationactions.LawN°2005-106introducedtheNationalFundforEnergyConservation(FNME,currentlynamedFundfor theEnergyTransition -FTE) in2005.This lawaims to financeenergyefficiency, renewableenergy,and energy substitution projects. The FNME supports such sectorswith financial aid in various forms,suchasdirectfundinterventions,resourcesachievedbytherealizationofanenergymanagementsystem,donations,andgrants.In2010,theFNMEfinancedupto21milliondinars.Finally, inaparticularsituationLawrequirestheestablishmentofpermits fortherealizationofenergyprojects.

• Environmental permit: To conduct an environmental study before the set up of a powergeneration project is a standard practice. However, it is mandatory by decree for electricitygeneration facilitieswith a capacity ofmore than 300MW. The ANPE, based in theMinistry ofEnvironment,hasthemandatetodelivertheexecutionofthisstudybyconsultantsandexperts.

• Connection to the Grid permit: The decree N°64-9 exposes conditions to connect powergeneration plants and supply electricity to the grid,making the subscriber responsible for theconnectionfee.ThepermissiontoconnectnewinstallationstothenetworkandthecostwillbedeterminedbytheSTEG,afterananalysisoftechnicalspecifications.

• LandPermit:Forprojectbasedonthesetupforapowergenerationinstallationonalandinthepublicdomain,theproducermustnegotiateaconcessionagreement,withaprecisedefinitionof


7

the property of the equipment installed after the expiration of the grant period. (By rule ofconcessionofLawN°2008-23).

Diverse ministries must take part in the land permit release procedure and have to provide theirauthorizationforprojectdevelopment:

- TheMinistryofTransporthastodeliveranapprovalforthesetupofanewinstallationwhichcouldbeanobstacletoaeronauticaltraffic.

- TheMinistry of Agriculture has to be aware of a change in the usage of lands (agricultural,closed, or area of backup) to modify its destination by decree, on the advice of the technicaladvisorycommitteeoflocalfarmland.

- Even if the terms and conditions of the agreement are not precisely defined, it is alwayspreferable to make a request to the Ministry of National Defence before to set up newgenerationequipment.Table5:LawclassificationbyTopicsSource:adaptedfromGIZreportonTunisia

Topic LawText Date Content

Law on Energy production& Independent Production(IPP)

LawN°62-08 1962 Allow some independent producers to generate electricity for theirconsumptionandsellthesurplustoSTEG.

LawN°96-27 01/04/1996Authorizes the state to grant independent producers "IPP"concessions of power generation for exclusive sale to STEG by aPPA.

LawN°2015-12 11/05/2015 A new law is giving the legal framework for the development ofRenewableenergyproject.(Section3.3.2,p26)

LawonCogeneration

DecreeN°2002-3232 03/01/2002 Decreeofapplication

Bylaw of Ministry ofIndustry&Technology 24/12/2007

Approvingthespecificationsonthetechnicaltermsforconnectionanddischarge of electrical energy from cogeneration power plants to thenationalgrid.

LawN°2004-72 02/08/2004 Introducing essentials elements for promoting the cogeneration, inparticularforproduction,transmissionandsalesofelectricity.

Bylaw 18/06/2009

Fix transmissionand sale tariffsof electricity surplusdeliver toSTEGby technical conditions forconnection to thenationalpowergridandtariffsofthesaleofsurplusproductiontoSTEG.Fix the rates of transport and sale of excess electricity STEG and thetechnicalconditionsforconnectiontothegrid.

Law for electricityproduction fromRenewableEnergies

LawN°2009-7 09/02/2009 Introducing essential elements for promoting renewable energies, inparticularfortheproduction,transmission,andsaleofelectricity.

DecreeN°2009-362 09/02/2009 Introduction investment aids for the realization of electricityproductionprojectsfromrenewableenergysources.

DecreeN°2009-2773 28/09/2009Fixconditionsofpowertransmission,thesaleofsurplusestoSTEGandtheupperlimitsofthesesurpluses.AdecisionoftheMinisterinchargeofEnergysetthePrices.

GridCode 12/05/2011 Technical specifications for the connection of cogeneration andrenewableelectricityproductiontothegrid.

LawN°2015-12 11/05/2015 A new law is giving the legal framework for the development ofRenewableenergyproject.(Section3.3.2,p26)

Decree2016 August2016 ApplicationDecreeoftheLawN°2015(Section3.3.2,p26)

LawonSelf-ProductionLawN°2004-72 02/08/2004

Give right to self-producer to transport the electricity produced bycogeneration or renewable installation (for own consumption), up tothepointofuse,andtherighttoselltheexcesstoSTEG,inalimitsetbyadecree.

Decree2009-2773 28/09/2009 FixingTransmission&saleconditionfromenergysurplusproduceforSelf-productionandownconsumption.

Law establishing theNational Fund for EnergyConservation

LawN°2004-72 02/08/2004 Allowing the publication of new legislation and regulation to supportenergyconservationactions.

LawN°2005-82 15/08/2005 Created National Fund for Energy Conservation (FNME), financialassistancefortheenergyconversionfield.

DecreeN°2005-2234 22/08/2005 Fix therateandamountsofpremiumsofactionsregarding theFNMEandmodalitiestograntthem.

LawN°2005-106 19/12/2005

Article 12 and 13, set the national fund for energy conservation,intending to finance energy efficiencyoperations, promote renewableenergy and energy substitution. This fund will provide subsidies fortransactionstargetedinthearticleIoftheLawN°2005-82.

LawN°2005-82 15/08/2005 Establishanenergymanagementsystem.

Approvals&Permits

DecreeN°2005-1991 11/07/2005 Environmental Permit: Electricity generation facilities of more than300MWrequiresenvironmentalimpactstudies.

DecreeN°64-9 17/01/1964 Gridlicense:Connectionsfeestothenationalgridaretheresponsibilityofthesubscriber.

LawN°2008-23 01/04/2008 Land Permits: Determine rules for a concession contract to set up aprojectonalandinpublicdomain.


8

2.2 Electricitykeystakeholders

FewentitiesmanageenergydeploymentinTunisia,thusshapingasimpleandcoherentmarketstructure,butlimitingthelibertiesofIPPs.ThethreemainstakeholdersaretheTunisianMinistryofIndustry,EnergyandMines,theTunisiancompanyofElectricityandGas(STEG),andtheNationalAgencyforEnergyConservation(ANME).

Table6:MainEnergyTunisianActors

Institution Role

MinistryofEnergy,MinesandRenewableEnergies

The Ministry of Energy, Mines and Renewable Energies of Tunisia have to elaborate governmental policies in thedifferentareaunderitscontrol.Regarding,theenergysectoritsmainmissionsare:− Topromotetheresearchandtheexploitationofenergyresources,− Toassuretheenergysecurityofthecountry,− Todevelopand implementpoliciesand juridical textsregardingenergyefficiencyandenergytransitionthrough

renewable,− Tonegotiatewithcompaniesandtoattributepermitofresearch,− Toelaborateenergyprojects,andmanagetheexploitationofresources,− Toassureoptimizationofthehydrocarbonproduction,andoptimizemarketconditions,− Topromotetheusageofacleansourceofenergy,

STEG

SociétéTunisienned'ElectricitéetdeGaz

The STEG founded in 1962, by the Law N°62-8 aiming to harmonize the energy sector in Tunisia, gave to the STEG theresponsibilityofthemanagementoftheproduction,transportationandthedistributionofelectricityandgasinTunisia.TheprimaryobjectivesoftheSTEGare:

− Theelectrificationofthecountry− ThedevelopmentoftheNaturalGasnetwork,− Thedevelopmentofinstallationforelectricityandgas.

Torealizethoseobjectivesseveraltasksisunderitsresponsibility:− Themanagementoftheelectricityfromdiversesourcessuchasthermic,hydraulic,windmills,− ThetransportofelectricitywiththeadministrationanddevelopmentofHigh-tensiongridandlines,− Thedistributionofpowerwiththeadministrationanddevelopmentofmediumandlowtensiongridandlines,− Thedevelopmentanddistributionofnaturalgas,

TheproductionofLPG(LiquidPetrolGas).

STEG-ER

RenewableEnergy

STEG-ERistherenewablepartoftheSTEG.ThemainactivitiesoftheSTEG-ERaretostudy,realize,operateandassurethemaintenanceofrenewableandcogenerationinstallations.Workinginthethreefollowingsectors:

− Wind− Solar− Cogeneration

TheprimarymissionoftheSTEG-ERare:− PromotionoftheTunisianSolarPlan(seesection3.4).− Projectsdevelopment:Feasibilitystudy,resourcestudy.− Projectsrealization:ownership,supervision.− ExploitationandMaintenance.

ANME

AgenceNationalepourlaMaîtrisedel'Energie

L'ANMEcreatedin1985;itisanentityundertheadministrationsupervisionoftheMinistryofEnergy.Itsprimarymissionsare toapplyTunisianpolicies regardingenergymanagementbystudyingandpromotingenergyefficiency, renewableandenergy transition. The ANME is composed of two section one focus on Renewable projects and the other one on EnergyEfficiency.Thebranchworkingonenergyefficiencyisdividedintothreesectors:Industrial,Building,andTransport.Toimprovetheenergyefficiencyandtodiversifyenergyresources,theroleoftheANMEis:

− toelaborateandimplementnationalprogramsregardingenergymanagement,− torealizestrategicstudiesonemissionreduction,− tomanagetheFNME,− toproposearegulatoryandlegislativeframework,− todevelopawarenessactions,− Toencouragefinancingandinvestmentonrenewableenergyandenergyefficiency.

Focusing,onenergypoliciesthemaintasksoftheANMEare:− todevelopnationalresourcesofHydrocarbon,− toensuretheenergysecurityatlowcosts,topromoteofrenewable,− Tosupporttheenergytransitionandtopromotedomesticandinternationalenergycooperation.

Focusing,onenergyconservationthemaintasksoftheANMEhave:− tomanageEnergyefficiencywiththerationalizationofthepowerconsumption,− tomanageenergyauditandconsultationsonpowerconsumptionandESCO's,− to develop the information for household appliances energy consumption and make thermal regulations on

buildings,− Tocontrolinarationalwaytheusageofpubliclighting,tomakediagnosticofcar'smotors,andtodevelopurban

transportplaninthemaincities.


9

2.3 PowerMarketStructure STEG, under the supervision of theMinistry of Industry, is the leading actor in the Tunisian electricitymarket,performingproduction, transmissionanddistributionofenergy.Suchframeworkhassimplifiedtheenergymarket,thatiscurrentlycomposedoffewkeystakeholders.Inanycase,itisrelevanttopointouthowSTEG'smonopolystatusinelectricitygenerationendedwiththeopeningofthemarkettoIPPsin1996.Figure7showsanoverviewoftheElectricitymarketstructureofTunisia:

− STEGholdsthemonopolyoftransmission,distribution,andsaleofelectricity.Moreover,thecompanyperformsmostofthepowergeneration,accountingfor79%ofthetotalproduction,in2015. At the same time, STEG-ER manages part of the renewable and alternative energyproduction.

− Currently,IPPsrepresent17%ofthetotalelectricitygeneration(seeFigure7).However,theircontribution is limited to production for either self-consumption or in order to sell energy toSTEG.

Figure7:TunisianElectricityMarketOverviewSource:AdaptedfromENELGreenPower[29]

GENERATORS SINGLEBUYER TRANSMISSION DISTRIBUTION CLIENTS

STEG

86%oftotalproduction

STEG-ER

IPP&selfproducers

14%ofthetotalproduction

STEG

PPAnegociatedtariffs(tender)

STEG

Consumers(Households,Industries)


10

0

20000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

GWh

Agriculture/forestryCommercial&PublicservicesResiden8alTransportIndustry

2.4 PowerDemandTheglobal energy consumptionofTunisia is equal to0,9 TOE. Oil consumption still accounts for the vastmajority of the total energy consumed in the Country,followedbyelectricity,gas,andbiomass.In relation to thepower demand, consumption by theinhabitants was set around 1315 kWh in 2010 and hasbeen characterized by an increase of around 4% everyyear.Themainamountofenergyconsumptionstemsfromtheusageoflightingandelectricaldevices(80%).The breakdown of energy consumption in Tunisia bysectorsissummarizedbelow:

− The transport sector accounts for more than30%ofthetotalenergyconsumption.TheprimaryenergysourceinsuchsectorisOil.

− Energy consumption increase in the industrialsector of Tunisia is the fastest among Mediterraneancountries with 35% of total energy consumed. In thissector,oilremainsthemostusedsourceofenergy.

− Theservicesectoraccountsforonly4,5%oftheenergy consumed, mainly used in connection withtourism.

− The use of energy from the agricultural sectoraccounts for only 7% of the total energy consumption.However, agriculture accounts for a significant share ofthecountryeconomy,withanoverallamountoffarmablelandequalto5000m²perinhabitant.Asit isshowninFigure10,theenergybalanceofTunisiahasto facetwoproblemsregardingconsumption.Ononehand, the population of Tunisia is still increasing,reaching 11 millions of inhabitants in 2014, even if thepopulation growth rate has steadily been reducing downto1percentperyearduringthepastdecade.Ontheotherhand, the overall trend of energy consumption perinhabitant inTunisia,althoughcarefullymanagedbytheANME bymeans of various energy efficiency projects, isalsoincreasing,achieving1,430KWh/capitain2013.Theincreaseofelectricityconsumptioncouldberelatedtothesteadydevelopmentofelectrificationinthecountry.Infact, in 2012 Tunisia achieved 99,8% of electrificationrate (100% in urban areas and 97% in the countryside)compared to 95% in 2000.However, this is not the onlyfactor influencing electricity consumption, as themultiplication of electrical appliances in thehouseholds and cities could also represent a key factor.ThatiswhyTunisian'senergyactorsarefocusingnotonlyontheimplementationofnewrenewableenergyprojects,butalsoonenergyefficiencyandconservation.

68%

7%

12%

5%4%

4%Industry

Pumping&sanitarysta8onServices

Agriculture

Transport

Tourism

Figure9:ElectricityConsumptionevolution&repartitionbysector

Source:IEADatabase

Figure8:ConsumptionrepartitionbySectorMars2015(HT&MT)

Source:ONE2015

Figure10:Tunisianpopulationevolution&Energyconsumptionpercapita

Source:Databankmondial


11

2.5 PowerSupply

In2015, theelectricityproductionofTunisia reached18256GWh,withan installedcapacityof5224MW.AsshowninFigure11,STEGgeneratesthemostoftheelectricityinthecountry,accountingforupto79%oftheproductionin2015.ThemainsourceusedbySTEGtoproduceelectricityremainsnaturalgas,whichaccounts for13235GWhperyear.However,even ifnaturalgasrepresentsthemain input fortheproductionof energy, thesharegeneratedbyrenewablesources is increasing.According to themonthlyreportbyONE,inMay2015,theproductionofelectricitygeneratedbyhydraulicsourceshashadan increase of 42% compared to the same period in 2013, while electricity generated fromWind hasgrownby127%inthesameperiodoftime.TheusageofnaturalGastoproduceelectricityhasknownanegative variation of 8% if compared to that period. Those data clearly show the effort of Tunisia toimplementaneffectiveenergytransitionfromfossilfueltorenewableenergygeneration.The share of energy generated by IPPs in May 2015 accounts for 17% of the totalwith 3314 GWhproduced. InFigure13,wecanappreciatehow,since theopeningof themarket in1996, theelectricityproductionmadebyIPPhashadanincreasein2002withtheinstallationofthepowerplantRhadesIIandZarzis, thatmainly use natural gas as input.After this period, the IPP power production has remainedstable,oscillatingaround3200GWhinabsenceofanynewIPPinstallation.

31913235

56507

0 2000 4000 6000 8000 10000 12000 14000

STEGElectricityProduc8on

Wind

Hydrolic

Naturalgas

Fuel+Gasoil

79%

17%4%

STEG IPP Autoproducer

Figure11:ElectricityProduction2015perproducerinGWh

Source:ONEWebData

Figure12:RepartitionofSTEGElectricityProductionGWh

Source:ONE2014

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

ElectricityProduc7onbyProducer

Autoproducteurs(GWh)

STEG(GWh)

IPP(GWh)

Figure13:EvolutionoftheElectricityProductionbyProducer

Source:ONEWebData


12

Aspreviouslymentioned,Figure14showingtheevolutionofelectricityproduction'ssourcesinTunisia,confirms the supremacy of natural gas, that accounts for94% of the total Tunisian power production.Natural gas isusedasbase load to answer to the increasingdemand for electricity.Tunisia is coveringapproximately53%of its gasdemandbymeansof ausage feepaid inkindon thegaspipeline comingfromAlgeriatoItaly.Thecountrytriestocovertherestofthedemandwithitsgasresources.However,the steady decrease of the resource, as illustrated in paragraph 1.2 above, has lead to an increaseddependencytoAlgerian’sgas.Inregards to theother fossil fuelsusedtoproduceelectricity,since2010theusageofoil isalmostnon-existent: currentlyoil ismainly used as power source in order to balance the demandwhen it isneeded.Whileitaccountedfor1461GWhin2007,itsconsumptiondecreasedtoachieveonly67GWhin2013.

Fromadifferentperspective,thisgraphillustratesanincreaseoftherenewableusageasanelectricitysource.Indeed,thetrendintheuseofrenewablesforpowerproductionfollowstheoppositedirectionifcompared to oil usage. In its 2015 May monthly report, ONE has clarified that electricity productioncoming from renewable sources has been subject to an increase of 19%between2014 and2015. Thisincreaseismainlyduetothelaunchofthesecondpartoftheproject"Metlineelkchabta",consistinginthedevelopmentofawindfarminBizerth.Followingthisevolution,theproportionofrenewableenergyusedasasourceforelectricityproductionaccountsfor4,2%in2015,growingfrom3,7%in2014.The installed power capacity of hydraulic energy is not evolving; only the production could knowvariations depending on the years, mainly due to climatic factors. Following the development of thehydropower sector, the main expansion of renewable sources has been due to the implementation ofseveral wind projects.Wind power is now leading electricity production from renewable sourcesreachingupto358GWhin2013,against23Gwhin2000.SolarPVgenerationhasbeencharacterizedbyaslow start since 2010,with a an increase in production from 1 GWh in 2010 to 11 GWh in 2013. It isrelevanttopointouthowsuchincreasehasbeenachievedmostlybymeansofsolarhomesystemsandnotdue to thedevelopmentof large scaleprojects.Theother sourcesaremainly composedofThermal(stem)powerplantsandcombined-cyclegasturbines.

Figure14:Electricityproductionpersources

Sources:IEADATAweb

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

GWh

ElectricityProduc7on

Othersources

Wind

SolarPV

Hydro

Gas

Oil


13

2.6 Grid&Infrastructure

Table7:TunisianPowerInstallation(Exceptsolarfacilities)

Source:STEG

TUNISIANPOWERINSTALLATIONS-2014

Owner Kind Name Dates PowerInstalled(MW)

STEG GasTurbine

BIRMICHERGUA 1998/2013 476MW

TUNISSUD 1975/1978 66MW

MENZELBOURGUBA 1978 44MW

KORBA 1978/1984 56MW

SFAX 1977 44MW

KASSERINENORD 1984 68MW

GHANOUCH 1973 44MW

BOUCHEMMA 1977/1999 178MW

THYNA 2004/2007 358MW

FERIANA 2005/2009 240MW

GOLLETTE 2005 120MW

ROBBANA 1984 34MW

ZARZIS 1983/1999 34MW

Figure15:InstalledPowerCapacity2014

Sources:Energypédia,Ecomena

Tunisia is an energy-dependent country withmodest oil and gas reserves. The global installedPower Capacity of Tunisia reached 4827 MW in2014andrepresent5224MWinAugust2016.

Up to 94% of the total installed capacity of thecountryisgeneratedbymeansofnaturalgaspowerfiredviathermalstation.

The remaining 4,4% stems from renewableinstallationswith:68MWofHydropower,245MWofWind, and around 15MW of residential Solar PVsystem,installed.

Thetotalinstalledcapacityisexpectedtoincreaseto7 500 MW by 2021. The reason of the Powercapacity rise liesmostly in theneed tobalance theincrease of power demand in the industrial andresidentialsectors.

This future development of installed capacity inTunisiawillbe lessbasedonnatural gas, andmoreon the energy transition process. Indeed, even ifsome additional power plants could be built, thedevelopmentofsolarandwindwillbesignificanttosustain the economic development and reduce theimpactofthecountryonclimatechange.


14

TransmissioncurrentSituation:Gas and oil represent the main factors for the balancingbetween supply and demand in Tunisia. The furtherdevelopment of the electricity grid will allow moreflexibility regardingrenewableenergy integrationandcouldrepresentapositivefactortosupporttheirdevelopment.Between 2012 and 2020, the African Program ofInfrastructure Development (PIDA) implemented fifteenprojects in the continent to extend the existing energy grids,for a total amount of investment equal to USD 40.5 billion.Those projects aim to further develop border energyexchanges by means of nine hydroelectric plants, fourtransmissioncorridors,agaspipelineandanoilpipeline.Oneof the transmission corridors will be constructed in NorthAfrica, connecting Egypt to Morocco, while passing throughTunisia. Such new connections will help the development ofrenewable technologies in the whole MENA region. Indeed,thosetransmissionlinesaremultiplyingtheaccesstoseveralresources of energy, and reducing the problem of balancingsupplyanddemand.Thegridconnectionsaremoredevelopedinthenorthandon the coast of Tunisia, due to the higher density of thepopulationinthisarea.Themainlineof225KV,connectsthenorth to the south of Tunisia. Five lines are currentlyoperational between Tunisia and Algeria, composedrespectivelyoftwolinesof90kV,andonelineof150,250and400kVeach.Those lineshavea limitedcapacityof 1000MW.Twolinesof225kVareconnectedtoLybia,buttheyareusedwith precaution because of the instability of the electricityinfrastructure of Libya. Sudden changes in electricity flowcouldnegativelyaffect the reliability fo theTunisiangrid.Theoverall electrification rateof the countryhasreached99,8%,with97%inruraland100%inurbanareas.ThemostisolatedpartoftheCountryisprovidedwithelectricitybymeansofphotovoltaicsystems.

TUNISIANPOWERINSTALLATIONS-2014

Owner Kind Name Dates PowerInstalled(MW)

STEG&STEG-ER

Thermal

RADES 1985/1998 710MW

SOUSSE 1980/1994/1995 684MW

GHAN-NOUCH 2011 425MW

SOUSSEC 2014 425MW

HydraulicStation

SIDISALEM 1983 36MW

FERNANA 1958/1962 9,7MW

NEBER 1956 13MW

AROUSSA 1956 4,8MW

KASSEB 1969 0,66MW

SEJNANA 2003 0,62MW

BOUHERTMA 2003 1,2MW

WindFarmSIDIDAOUD 2000/2007 54MW

KACHBTA 2012 94MW

METLINE 2012 95MW

IPP GasTurbineRADESII 2002 471MW

ZARZIS 2003 27MW

WIND214MW

Figure16:TunisianElectricityGridSource:STEG

99,8%Electrificationrate


15

2.7 ElectricitypricesEvery year, theMinistry of industry establishes energy prices at the national level taking into accountinternational oil and gas prices, the financial balance of businesses and subsidies provided by thegovernment.Thesalepricesarenothighenough tocover thecostsofelectricityproductionanddistribution.That iswhySTEG is supportedwithpublic subsidies.However, thegovernmenthasplannedanyearlyincreaseofelectricityprices toreducestepbystepsubsidies in thissector.Following thisprocessby2014,thetariffforthecementindustrieshadincreasedby35%.Thecostofelectricityfortheresidentialandindustrialconsumersincreasedby10%,duringthesameperiod.Suchtariffraiseisimplementedwiththegoalofprogressivereductionofsubsidies.Indeed,inthesectorof high andmediumvoltage electricity, subsidies forpower shoulddeclineuntil disappearing in3or6years.Nevertheless,thegovernmenthasnotplannedanytariffincreasefortheyears2015and2016.Table8:TunisianElectricityTariff2014

TUNISIAELECTRICITYTARIFF2014–Mill(ofDinars)/kWh

Voltage Consumption Sector EnergyPriceperamountofKWhConsumed(Mill/kWh)1-50 51-100 101-200 201-300 301-500 501+

LOWVOLTAGE

≤200kWh/month

Residential 75 Residential&other 180 Residential&other 140

>200kWh/month

Residential 151 184 280 350

Residential&other 250 295

Sources:STEG

TUNISIAELECTRICITYTARIFF2014–mill(ofDinars)/kWh

Voltage Kind Day MorningPeak EveningPeak Night

HIGHVOLTAGE

Emergencyservices 148 233 212 111

Safety 168 290 255 120

CementIndustry 212 339 303 181

MEDIUMVOLTAGE

Uniform 167

Timetable 152 238 218 115

PumpingforIrrigation 160 LoadManagement 115

AgricultureIrrigation 114 LoadManagement 132 88

Emergencyservices 170 295 258 123

CementIndustryUniform 218

Timetable 219 349 312 186

particularLOW

VOLTAGE

PublicLighting 218

WaterHeater 280 LoadManagement LoadManagement 280

Heat&AirConditioning 350

IrrigationUniform 135

Timetable 103 295 93


16

Figure17:RenewableElectricityGrowthSource:IEAWebDatabase

Figure19:RenewableinstallationinTunisia2016

Source:adaptedfromSTEGpresentation

3 RenewableEnergy&EnergyEfficiency

3.1 CurrentSituation

3.1.1 RenewablesWithin the MENA region, gas and oil are abundant and remain the primary sources of energy. Theeconomic advantages of using oil and gas create a significant obstacle for new investments to developrenewableenergyproduction.Indeed,3,68Mtoeofoiland5,04Mtoeofgashavebeenproducedin2012,whereasrenewableenergyaccountedonlyfor0,06Mtoe.TheshareofrenewableenergygenerationintheTunisian energymix has been represented only by hydropower formany years. However, Tunisia hasstartedtoincreaserenewableenergyproduction,reachingapproximately4.2%oftheenergymixin2015.

Theinstalledcapacityofrenewableenergyatlargescaleisapproximatelyequalto313MWin2016.TheincreaseofrenewablepowerproductionhasknownarecentincreasemainlyduetotheimplementationandexpansionofWindfarmsinBizerteandSidi-Daoud.Suchincreaseofinstalledrenewablesitesandpowerproduction,confirmstheambitionofTunisiatodevelopasignificantrenewableenergysector.

0

100

200

300

400

500

2008 2009 2010 2011 2012 2013

GWh

Hydro Wind SolarPV

Figure18:PartofrenewableintheelectricityProduction

Source:IEAWebDatabase

2009

2010

2011

2012

2013

Oil Gas Renewables


17

HYDROPOWERHydropowerhasbeenthefirstrenewableresourceexploitedinTunisia.ThedevelopmentofhydropowerinTunisiahasbeenimplmentedgradually:

- In1956thehydrostationofArroussiawasinstalled,withatotalcapacityof4,8MW;- The sameyear theNebeur stationwas alsoput into operationwith anoverall capacity of 13,2

MW;- The station of Fernana has been developed in two steps: the first one in 1958 with the

implementationof8,2MW,followedbyanexpansionof1,3MWin1962;- In1969,0,66MWwasinstalledontheKessebsite;- In 1983, themainHydro facility of the countrywas developed in Sidi Salem adding 36MWof

renewablecapacity;- In2003,thelastinstallationswerebuiltinBouhertma-Sejnene,accountingforadditional1,2and

0,62MW.Hydropowerhasremaineduntiltheyear2012,themainrenewableenergyresourceofthecountry.Theexploitationofseveralsiteshasbeenconductedgradually.Currently,theglobalhydraulicinstalledpoweraccountsfor68MWandhasavariableproductioninbetween40and160GWh.

WINDPOWERCurrently,followingtheleadingpositionofhydropowerinenergygeneration,windpowerrepresentsthemainsourceofrenewableenergyinthecountry.AsshowninErrore.L'origineriferimentononèstatatrovata., since 2008 wind energy is leading the energy transition of Tunisia with a growth of theproductionupto245MWofpowerinstalledin2016.Twomainwindfarmshavebeendevelopeduntilnow: Sidi-Daoud and Bizerte (composed of two sites:KchabtaandMetline).

Sidi-DaoudThefirstwindpowerprojectofTunisiastarted in2000,withtheinstallationoftheSidi-Daoud’swindfarminthegulf of Tunis. The station has been developed in threesteps before reaching its current power capacity of 54MW:

- Firstly the installation of the first 10,56MW in2000;

- Secondlytheadditionof8,72MWin2003;- Andatlasttheexpansionof34,32MWin2009.

ThewindfarmofSidi-Daoudiscomposedofthreediversewindturbineprofiles:twosmallturbinemodelsof300kWand 800kW (AE32 and AE46) and some bigger ones of1,32MW(AE61).

Figure21:Sidi-DaoudWindFarmpositionmap.

Source:INTECHWebsite

Figure20:BizerteWindFarm(Kchabta)

Source:RES4MEDTunisia19.09.2016


18

Figure23:BizerteWindmillModels(Kchabta)

Sources:Tunisia19.09.2016

BizerteInregardstowindenergy,Tunisialaunchedin2012theoperationoftwowind power facilities with combined production capacity in Bizerte:Metline and Kchabta Station. Those stations have been extended in2015withtheimplantationof26newwindturbines.AsshowninFigure17, the development of those stations has conducted to a significantincreaseof electricitygeneratedbywindpower, totalizingaproductionof94MWforKchabtaand95MWinMetlinein2016.

Currently, Bizerte’swind farms account for a total of143windturbines (71 Kchabta and 72 Metline), growing from a totalamount of 91 before the extension (45 in Kchabta and 46 inMetline).Differently fromSidi-Daoud, themainmodelof turbineusedonBizerteisAE61Wind,withacapacityof1,32MW.Thosewind turbines have a height of approximately 59 meters andblades30meterslong.Theyworkwithasystemoftwowindings,thatmaintains the speedof the rotor stable at1000 revolutionsper minute, even in case of fluctuation of the wind speed. Theaveragewindspeedinthisareaisofabout9meterspersecond.Toillustrate,onSeptember2016,thetotalproductionofthesitewas reaching 40000MWwith awind speed oscillating between11and17m/sec.Moreover, thisproject is saving120,000TOEof fuel and43,000m2ofwaterayear.A loanof theSpanishFund forAssistance toDevelopment has partially financed the construction of the site.ThoseeffortscanbeseenasthestartingpointofTunisianenergytransition, promising the multiplication of new projects in the

future.SOLARCurrentlyTunisiaisnotexploitingsolarpoweratlargescale.However, several installations forautoproductionare inoperation, thanks to thesupportofANMEand STEG. Those projects aremainly developed at the residential level. Indeed, formedium and hightension,thedevelopmentofSolarpowergenerationrequiresmorecomplextechnologiesandtechniques.That is why, even after the opening of auto production in 2009, industrial companies, as for examplecementmanufacturers, chose not to implement auto energy production programs. Instead, some smallcompaniesarestartingtodeveloptheirownrenewableproduction.However,thedevelopmentofthenewregulationcouldhaveapositiveimpactonrenewableprojectsdevelopmentforlargeindustries.At the residential level, the renewable department of ANME, supported by STEG and several financialentities,haslaunchedtheprojectsPROSOLandPROSOLElec.ThoseinitiativesprovideeffectivesupportmechanismstodeveloptheusageofsolarwaterheatersandPVpanelsattheresidentiallevel

Figure22:BizerteWindFarm(Kchatba)

Source:Tunisia19.09.2016

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24

3.3 FrameworkforRE&EEdevelopment

3.3.1 Strategy,TargetsandKeyIssues.

Ø STRATEGYTunisiahasadoptedapro-activepolicyregardingattenuationandadaptationinordertoreducetherisksconnected with climate change. The Intended National Determine Contribution (INDC) reportsubmittedbeforeCOP21in2015isasummaryofactionsandtargetsplannedbyTunisia.ThecontributionofTunisiatotheClimatechangereductionplanisbaseduponexistingnationalstrategiessuchastheTunisian Solar Plan (TSP). The Tunisian main stakeholders have implemented this guideline for thedevelopmentofrenewableenergyintheircountry.TSP istheoperationaltoolfortheimplementationoftheTunisianstrategy intheelectricitymixasregards topower generation from renewable sources.As such, it focuses only on electricity generationconnectedtothegridandmorespecificallyonfourchannels,namely:wind,PVconnectedtotheGrid,CSPandbiomass.TSP has been elaborated in 2009 and has been subject to several improvements until now in order toreflect national strategies and targets,while providing a roadmap for renewable and energy efficiencydevelopmentfrom2016to2030.Tunisia is planning to reduce the carbon emission in the energy sector down to 43% of the overallemissions in2030.This reduction would entail the suppression of207million teoCO2 from 2015 to2030, a significant engagement for theenergysector that currently accounts for75%of totalnationalcarbonemissions.Toachievethistarget,Tunisiahasdevelopedastrongstrategyofenergycontrolstructuredaroundtwomainaxes:theincreaseinenergyefficiencyandthedevelopmentofrenewableenergygeneration.Suchstrategyisnecessarytosolvethediversechallengesofthecountryregardingenergy,butalsocontributestoeconomicandsocialdevelopment.TwoprinciplesguidetheTunisianstrategy:

- Thedeploymentoflong-termvisionandobjectives.Indeed,theobjectiveshavebeenelaborateuntil2030,andtheactionplanisshowingthedirectionuntil2020.

- Thecreationofdialoguesandpartnerships.Thestrategyandtheobjectivesaretheresultofanongoing dialogue and reflect the expertise of all the energy stakeholders in order to achieve arealisticstrategyandaction.

4%

14%

24%

30%

2015 2020 2025 2030

%ofREintheEnergyMix

275MW

1.225MW

2.482MW

3.815MW

2015 2020 2025 2030

ERInstalledCapacity

Figure32:ERInstalledCapacityMW

Source:ANMEFigure33:PercentageofREintheenergyMix

Source:ANME


25

EE-30%PrimaryDemand

2030

RE+30%Renewable

2030 WindPVCSPBiomass

. 1755MWofWindPower

. 1510MWofPV

. 450MWofCSP

. 100MWofBiomass.[38]

Achievementofregulatory

framework,especiallyregardingTariffs

TogiverulesregardingTariff.

Tosupporttheproduc8onandintegra8onofrenewable.

Toincreaseenergy

conserva8onprojects.

Expan7onoftheGrid

ToincreaseGridCapacity

TodevelopnewexchangewithneughbooringcountryandEurope.

Todevelopastoragebythe

grid.

Crea7onofanIndependantEnergy

regulator

Toensuretherespect

ofthemarketrules.

Tobetheneutral

mediatorbetweenall

thestakeholders.

ImprovmentoftheFTE

Toexpandits

illigibility.

Tochangeitsopera8onmodel.

Toincreaseitsressource

Decentraliza7onoftheEnergyManagement

Togetasocio-economicalterritorialsubdivision.

Tosetanins8tu8onalframeworktofollowprojects.

Togetaspecificsystemof

informa8onperarea.

Toelaborateaspecificenergyprogramforeach

area.

DevelopCi7zenenergyresponsability

Toincreasepopula8onawarness

Toinvolvelocalassocia8ontoexpand

goodprac8ces.

Todeveloptrainningsregardingenergyat

school.

Topromoteci8zeninvestmentregardingrenewableproduc8on.

Ø TARGETSANDOBJECTIVES

TheprimarytargetsofTunisiaregardingenergyefficiencyandrenewableenergyare:Areductionoftheprimarydemanddownto30%by2030.

Thegoalistosave77Mtepofprimaryenergy,cumulatedontheperiod2015-2030,with75%ofthereduction due to energy efficiency deployment, and 25% due to renewable energy projects. Theachievementofsuchtargetshouldreachtheamountof3680M€by2020and6340M€by2030.Tunisiaexpectsthatsuchstrategyshouldhaveseveralpositiveconsequences.Indeed,theinterestofthecountrybyreachingthe2030targetsistoimpact:

- Theenergysectorbyreducingenergydependencyandincreasingenergysecurity;- Theeconomybythereductionoftheenergybillandpublicsubsidies;- TheenvironmentbythereductionofCO2emission;- And the public with the creation of employment opportunities and the preservation of the

HumanDevelopmentIndex(IDH)ofthecountry.

Ø KEYISSUES

Figure34:KeysforthesuccessoftheTunisianstrategy

Source:AdaptatedfromANMEreport

ThereinforcementofthecurrentpoliciesregardingEnergyEfficiencyshouldallowthe decrease of energy consumption by 17% in 2020 and by 34% in 2030, ifcompared to the current estimation for those periods that don’t take into accountenergyefficiencyactions.An overall amount of 30% of renewable energy production by 2030, withsignificantdeploymentatthelargescaleof:


26

3.3.2 Legislativeandregulatoryframework

Ø LAWN°12-2015

In2016,oneof themainevents inrelation to theenergy transitionof thecountry towardan increasedrelevanceofrenewableenergygenerationisrepresentedbythefinalizationoftheregulatoryframework,thataimstoprovidetheopportunitytoinvestorstoimplementnewrenewableprojectsinTunisia.Thedevelopmentoftheregulatoryframeworkistheresultofalongprocess.RegulationforthepromotionofrenewableenergyhasstartedwiththelawN°96-27openingthemarkettoIPP.In 2012, the council of ministers has discussed the implementation of a comprehensive regulatoryframeworkforrenewableenergygeneration(excludingautoproduction).ThefirstideawastoadapttheLawof1996 inorder toprovide an efficient framework for tenders. Followingananalysisprocess, thegovernmentdecidedtoimplementaLawdedicatedtorenewableenergy,thatwouldhaveregulatedalltherelevantfacetsofrenewableprojectsdevelopment.Threeyearsofreflectionanddiscussionendedwithalawpropositionin2015:thelaw2015-12.Tosummarize,thelawprovidestheproceduretofollowforeachenergyrenewableproductionprofile:

• Energyautoproduction• InstallationsconnectedtothelowvoltagegridneedapprovalfromSTEG.• Installations connected to the medium and high voltage grid require an authorization

fromtheMinistry.• Energysellingprojects≤PowerMax

• AnagreementwiththeMinistryisrequiredtoidentifythecompanyandimplementtheinstallation.

• AnauthorizationfromtheministryisneededtooperateandproduceelectricityafterthecommissioningtestmadebytheSTEG.

• ConcessionforEnergysellingprojects>PowerMax• Theministryimplementsaconcessionafterapubliccallfortender.• Contractsaresubmittedtotheparliamentforreview.

• Concessionforenergyexportprojects• Theministrygrantsaconcessionafteracallfortender.• Contractsaresubmittedtotheparliamentforreview.

Ø DECREEOFAPPLICATION

August 2016 has represented an importantmonth for the development of the regulatory framework.Indeed,thedecreeofthelawN°12hasbeenapprovedandpublishedprovidingaclearlegalframeworktoinvestors.However,itisnecessarytopointoutthatinorderforthisdecreetobefullyfunctional,otherregulationsstrictlyconnectedtoit,suchastheprocessofauthorization,theamountofpowertoinstall,regulationofPPAs,havestilltobeupdatedtobecorrectlyapplied.

Ø REGULATORYFRAMEWORK

STEG developed theGrid Code for renewable energy in 2015. It has been done toapprove technicalspecificationsrelatedtoconnectingelectricityproducedfromrenewablesourcesandcogenerationtothegrid.TwodocumentshavebeenelaboratedwithintheGridcodeforRenewableEnergySources,onetakesintoaccounthighormediumvoltagegrid,whilethesecondonefocusesontheconnectionrequirementstolowvoltagegrid.Throughthisdocument,theTunisiangovernmentaimstomanagethedevelopmentofrenewableprojectstoavoidanoverloadofthegrid.Inordertoodothat,STEGmaintainsthemonopolytoconnectitsinstallationsonthemediumandlowvoltagegrid.Atthecontrary,theinvestor’sprojectswillbedischargedonthehighvoltagegridandtheconnectionscostswillbesupportedbytheinvestors.Inthisway,thedevelopmentofrenewableenergysourcescouldbedoneinsafelyandreliably,withoutincurringtheriskofoverloadingthegrid.


27

AnewcommissionhasbeencreatedcomposedbySTEG,ANME,andamemberoftheministryinorderto take into account previous experiences of other countries, and to develop a relevant and accurateframework. This commission, jointlywith the international expertise of theGIZ has developed aset ofdocumentstosupportinvestorsintheirprojectdevelopment(asforexampleprovidingdraftcontracts,orfunctionalspecificationfortheprojects).Thosedocumentswillbesubmittedbeforetheendoftheyear,tostarttheprojectdevelopmentassoonaspossible.Oneofthemost importantdocumentsfortheIPPswillbetherequestforannualcapacity,providingthemaximumtotalamountofrenewablecapacitythatcanbeinstalledeachyear.The main law regarding energy efficiency is the Law 2005-85 redefining the scope of the FNME,becomingETF. This Law provides a comprehensive framework to support all the energy conservationactionsdevelopedbytheANME.

Toconclude,theTunisiangovernmenthasreinforceditsambitionsthissummer(2016),makingitcleartothepublicbyaddingtheterm“RenewableEnergy”tothetitleoftheministerinchargeofenergy,nowtheMinister of Energy, Mining and Renewable Energy. This change has been implemented by the newminister,Mrs.HelaCheikhrouhou,reinforcingherpivotalrole in theaccelerationof thedevelopmentofrenewableenergygenerationinthecountry.ThenextfundamentalstepforTunisiaistoadopttheFeed-inTariffforrenewableenergyformediumandhighvoltage.

3.3.3 FeedinTariffTheFeed-inTariffremainsoneofthemostimportantissuestosolvefortheTunisiangovernment.Aclarificationonthesituationwillbeimplementedbeforetheendoftheyeartostartprojectsdevelopment.ThemainstakeholdersintheenergysectorofTunisiaareworkingtodeterminethetariffforthemediumandhighvoltage,whiletherewillbenoselloptionforthelowvoltage.

Focuso

ThemaingoalofthekeystakeholdersinTunisiaistoencourageIPPstodeveloprenewableprojects.Followingthefinalizationoftheregulatoryframework,theinvestorswillbeabletodevelopprojectsandtosellenergytotheSTEGbymeansofasimpleauthorization.The new ministry decided to accelerate all the processes necessary to attract investors,including the determination of the Tariff, which remains the main barrier for investors.Moreover,aneffortisbeingdonetoremoveallpossibleobstaclesforIPPprojects.Inordertoavoidissuesconnectedwiththeauthorizationprocess,theministryofenergyhasliaisedwithotherministriesthatareinvolvedinthedevelopmentoftheprojects.Instructionforauthorization:

ð Themaximumannualcapacityofthecountryregardingrenewableprojectswillbeestablishedeachyear.TheTunisiangovernmentwillacceptprojectsuntilthemaximumamountwillbereached.Noconditionswillbeprovidedregardingthenumberofprojectsorthecapacitylimitpersingleproject.

ð Theministrywillreceiveapplicationsandbeinchargeoftheclassificationoftheprojects.

Fortenders:

ð Adocumentspecifyingthenumberoftheprojects,theirpowercapacityandlocationwillbemadeavailabletothepublic.

ThecommitteecomposedbyANME,STEGandtheministryiscurrentlyelaboratingseveraldocumentsactingasguidanceforinvestors.Oneofthemwillbetheproceduremanualforthetechnicalcommissionthathasthemandatetoprovideadministrativedetailsexplaininghowtheprojectswillbeclassified.Theministrywantssuchdocumenttobeastransparentaspossiblewiththeinvestors.Currently,approximatelyteninvestorsfromdifferentcountrieshavealreadyexpressedtheirinteresttodeveloprenewableprojectsinTunisia,foranaverageoffortyprojectsonwindandonsolar.

FOCUSONIPP


28

3.4 FutureProjectsDevelopment

3.4.1 RenewablesProjectsTSPprovided for the installationofaround3815MWofpowercapacity fromrenewablesourcesby2030.Suchfacilitiesshouldcover40%ofthecountryproduction.Tunisiaiscountingonthedevelopmentof IPPprojects toachievethisgoal.Several investorshavealreadyexpressedtheir interest,butprojectscannotstartbeforethesubmissionofrenewabletariffs.Privateinvestor’sprojectswillallowthecountryto develop large-scale projects and to use new efficient technologies to meet the increasing nationaldemand.However,theenergytransitionofTunisiaisnotonlybasedonIPPprojects.STEGandANMEhaveplannedanincreaseoftheiractionstoachievethecountrytargets.Moreover,anexpansionoftheTunisiangridisalsopartoftheactionplan,inordertosupportrenewabledevelopment.

Ø STEGPROJECTSSTEG has already designed a program for its future renewable energy development that will bestructuredaroundthreemaintenets:thedemandsidemanagement,thediversificationofenergysupplyandthestrengtheningofgridandinterconnection.Alignedonthisstrategy,somerenewableprojectsarealreadyplanned:

– 3projectsforWindpowertotalizing300MW;→ 120MWplannedinSidiAbderrahmenifor2021;→ 100MWplannedinElKeteffor2020;→ 80MWplannedinTbagafor2019.

– 6projectsforsolarPVtotalizing70MW:→ 10MWplannedinJerbaduringtheperiodof2018-2019;→ 10MWplannedinMedenineduringtheperiodof2018-2019;→ 10MWplannedinTatooineduringtheperiodof2018-2019;→ 10MWplannedinGafsaduringtheperiodof2018-2019;→ 20MWplannedinTozeurduringtheperiodfor2018;→ 10MWplannedinKébiliduringtheperiodof2018-2019.

– Afeasibilitystudyisplannedtoevaluatefurtherpossibilitiesforhydropower.STEGwillinvolvelocalcompaniesactiveintheproductionofcomponentssuchascablesandconvertersintheimplementationofseveralprojects,withaparticularfocusonthewindsector.Positive externalities are expected as a consequence of the implementation of those new renewableprojects. Firstly, STEG attaches a special importance to the integration of local industries in thedevelopmentofthoseprojects,asthiswillhavepositiveeffectsontheemploymentanddevelopmentoflocalrenewableindustries.Moreover,thedeploymentofnewprojectsshouldleadtothedevelopmentofnewtechnologiesandresearchesregardingrenewableenergyproduction.Finally,theimplementationofnewrenewabletechnologieswillcontributetothecapacitybuildingofthelocalworkforce.

Figure35:STEGRenewableProjectsSource:STEG


29

Ø TUNISIANSOLARPLAN

Intermsofinstalledcapacity,TSPaimstoreachanamountofrenewablegeneratedenergyofabout3815MWin2030,equalto35%ofthetotalelectricalcapacityofabout11,000MW.Itisrelevanttopointoutthatthetotalelectriccapacityfromrenewablesources(excludingHydro)attheendof2015accountedforabout275MW,mainlywind(245MW)andsolarPVroofs(30MW).In relation to power generation, theTSP's objective is to achieve a penetration of renewable energy ofapproximately30%in2030.Finally,theTSPalsoplanstopromotetheelectricitydemandmanagementbycombiningdevelopmentofrenewableenergiesandenergyefficiencyactionsinitsactivities.

Figure36:InstallCapacityEvolutionaccordingtotheTunisianSolarPlan

Source:ANME

Ø PROSOLRegarding renewableenergy, theANMEwillpursueand intensify itsprojects in the future, settingnewandmoreambitiousgoals.

− TheprogramPROSOLThermalwillbestillactive,withnewtargetsforthecountryof:→ 1,4millionm²ofSolarheaterinstalledby2020.→ 2,4millionm²ofSolarheaterinstalledby2030.

− The mechanism applied for the installation of roof solar PV with PROSOL Electric will beextended:

→ 100MWpowersinstalledareplannedfor2020.→ CreationofnewlycertifiedtrainingforPVinstallationsareindiscussion.Twocentersfor

PVtestinghavealreadybeenestablishedbythenewlegislation.

2015 2020 2025 2030Biomass 0 45 80 100

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31

1ECRegulationno.714/09grantsENTSO-E,theEuropeanNetworkofTransmissionSystemOperators,thetasksofadoptingandpublishing,everytwoyears,anon-bindingten-yearnetworkdevelopmentplan(TYNDP)fortheEuropeanUnion,whichincludesintegratedgridmodels,thedevelopmentofscenariosandforecastsontheadequacyofsupplyanddemandattheEuropeanlevel.

OntheItalianside,thestrategicrationalearisesformthefollowingconsiderations:- Lowgrowthrateofthedemandandsignificantreductionoftheelectricityprice- Underuseofthermalpowercapacity,leadingtopowerunitsdismissalormothballing- HugegrowthofRESfrom2008to2013toreachthe2020EUtarget,butevenmorechallenging

targetssetat2030- DifficultytobalancethesysteminlowloadconditionsandhighRESproduction

Furthermore, overcapacity conditions in Europe and risks of shortage in Tunisia imply export flowstowardsNorthAfrica.OntheTunisianside,thestrategicrationalestemsfromthefollowingfeaturesoftheelectricitysector:

- Growthofelectricitydemand,about5%averageyearlyratewithsharpriseatpeakhours- Powerproduction(98%)totallydependingongas- Risksofstructuraldeficitintheenergybalance- High risk of unsupplied energy, particularly in case of delay in the implementation of the

NationalDevelopmentPlan,andofnon-compliancywithadequacyandreliabilityindexes- Significantshortageproblems(amajoreventofserviceinterruptionin2014)- NeedofenergysourcesdiversificationinaCountrydependingonimportedgasformorethan

50%- Better integration of Renewable Energy Sources of the Tunisian Solar Plan (30%of installed

capacityat2030)andpotentialexporttoEurope.TheCostBenefitAnalysis,fundedbytheWorldBank,hasprovedsubstantialbenefitsforbothshoresoftheMediterraneanintermsofmarketintegration,securityofsupplyandsustainability.The strategic rationale of the Project has been also acknowledged by the Governments of Italy,Tunisia, Malta, France and Germany and by the European Commission, which have expressed theirendorsement to its implementation. The World Bank and the Italian Agency for Development andCooperationbothhaverecognized thestrategic featureof theprojectand,andconcretelysupport theprojectbyprovidinggrantstocoverthecostsofthetechnicalstudies.Furthermore, Italy-Tunisia interconnection has been included in the ENTSOE’s Ten-Year NetworkDevelopment Plan1 (TYNDP) 2016 because it will significantly contribute to the market integrationamongtheMemberStatesandwiththeNorthAfricanCountries.Furthermore, incompliancewiththeEUReg.n.347/2013,theprojectwillbecandidatefortheinclusioninthe3rdPCIlist.Indeed,itsbenefitswouldgobeyondthebilateraldimension Italy-Tunisiaandprovideadditional tools tooptimizeuseofenergyresourcesbetweenEuropeandNorthAfrica.Asamatterof fact, theprojectwillcontributetoreduce,underspecificconditions,presentandfuturelimitations to the power exchanges on the northern Italian borderswith France, Switzerland,AustriaandSlovenia,andthereforeitwillallowtoincreasethetransmissioncapacityanditsexploitationbyatleast500MWonthatboundary.The project indirectly addresses the political aim set forth in the newly approved initiatives towardsAfricabytheEU,whichpushEUmembercountriestoinvestintheregionsofAfricawhicharedirectlyorindirectlyexperiencingsocialandpoliticalturmoil.Tunisiaiswithoutanydoubtoneofthecountrieswhere it ismost important to invest inprojects impactingnotonly theenergychainstakeholdersbutalso the society as awhole. The interconnectionwith Italywill indeedbenefit Tunisian economyandpromoteitssocialgrowthintheyearstocome.

AnalysismadebyTERNA

TERNA


32

Ø STORAGEThestorageofrenewableenergyisnotfullydevelopedinTunisiaduetoalackoftechnologydevelopmentandexpensivecosts.Currently thebestwaytostoreenergy is tousethegridasstorage.Thisexplainswhytheprojecttodevelopnewconnections,especiallywithEuropealsorepresentsapriority.Indeeditwillbeausefultooltosupportrenewabledevelopmenthelpingtobalancesupplyanddemand.However,STEGisworkingonstudiestoanalyzeotherstoragepossibilities forTunisia.AfeasibilitystudyisunderwayforthedevelopmentofaPumped-storagePowerPlantof400MWintheNorthonthesiteofMelahamont.

3.4.2 EnergyEfficiencyProjectsTodecreasetheprimaryenergydemandof thecountryby30%,theeffortsalreadydeployed inTunisiaregarding Energy Efficiency have to continue and to be reinforced. Currently, the energy efficiencyprojectsareincreasinginTunisiaandneedaproportionatefinancialsupport:– TheETFisstillprovidingresourcestotheprojects;however,itsscopeandcapabilityhavetobe

reviewedtomatchactionplansandtargets.– 40M$fromtheWorldBank;– 40M€fromAFD(AgenceFrançaisedeDéveloppement).– OtherfinancingpossibilitiesarecurrentlydiscussedtosupporttheTunisianambitionregarding

EnergyEfficiency.

To keep the control on the increasing energy demand, ANME has already planned new actions andobjectives.

− Reinforcementandpromotionofthecurrentprojects:

→ 440MWofcogenerationpowerwillbeinstalledby2020;→ EnergyAuditwillremainthemainprojectoftheANME;→ PublicLightingEfficiencywiththedeploymentofLEDandlowenergylightbulb;→ Certificationofhouseholdappliancestoreducehouseconsumptions;→ Building efficiency with the refurbishment of 300000 residential and tertiary

buildingsby2020andtheimplementationofapublicsystemofcertificationforpublicbuildings.

− NewProgramsarebeingdeveloped:

→ TheAllianceofCityhallsforEnergyTransition(ACTE)program,hasthemandatetoimplement all the ANME projects at city level. This program focuses on the energyconsumptionofpublicbuildingsfocusingonsixtopics:buildings,transportation,assets,waste valorization, energy alternatives, communication and international cooperation,and monitoring. The aim of this program is to develop a Bottom-Up approach withdecentralizationoftheenergymanagement.ANMEplanstolaunchthisprojectwiththefirstcityauditin2017.

→ TheUrbanTransportationPlanhasbeenplannedforfivecommunities.However,theprojectwillneednewinvestmenttobe launched.Tencities,spreadthroughoutTunisiahavealreadyexpressedtheirinteresttodeveloptheUrbanTransportationPlan.

→ TheHeat&CoolprogramwillbedevelopedinTunis→ ENERSOL:Anpublic call for application to the tenderhasbeenposted in collaboration

withtheItalianagencyIstitutodelCommercioEstero,tosupplyPublicLightingwithPVpower.


33

4 Social&EnvironmentalContext

4.1 SocialEmployment is a significant issue in Tunisia. The implementation of construction work for thedevelopment of renewable energy will have a positive impact on the employment rate. Moreover,somelong-termjobswillbecreatedtooperateandassurethemaintenanceofalltheinstallations.Indeed,several local companies are already providing interesting services for the development of renewableprojects.TheProgramPROSOLElectrichasalreadycreatedapproximately5000jobssince2010.Indeed,ANMEiscurrentlyworkingwith6PVindustriesand250installationcompaniesrepresenting1200employeeformaintenance.TheProgramPROSOLThermalalsocollaborateswith52companiesandtenmanufacturers.ThedeploymentofsolarheatingsystemsinTunisiahascreatedanaverageof700jobs.From2015to2030,thedevelopmentofrenewableenergyproductionisexpectedtocreateabout12000newpositionsintheenergysector.

4.2 EnvironmentThe climate of the country is characterized by seasonal irregularity and aridity. This is particularlyrelevantwithrespecttoHydropowerandthatiswhyitisnecessarytotakeintoconsiderationallfactorsinfluencingwaterresources.IntheNorth,therainfallisover400mm/yearandreaches1500mm/yearinthe extreme Northwest. In the central areas, rainfall is in a rangebetween150and300mm/year,whileintheSouth,rainbecomesrarer(below150mm/year)andintheextremesouth,rainfalldoesnotexceed50 mm/year in general. The average total rainfall is about 36 billionm3/year. Nevertheless, this amount is affected by relevant variationsthrough the years. Drought years or years of rain overflow couldalternateorfollow.Moreover, several studies show the vulnerability of the countryregarding ecosystem and natural resources, especiallywater, andsoil resources. That is why Tunisia intends to act seriously to fightclimate change, especially in the energy sector. This in particularbecause thecountrycouldbe impactedsignificantlybyclimatechange:temperature increases, reduced precipitation, rising sea levels, andextremeweatherphenomena.Tunisia's position at the junction of the orientalMediterranean basinsbestowedtothecountrydifferentclimaticzone:

− HumidtoSub-humidintheextremenorth;− Sub-humid to Semi-arid in the Northwest and the Cap Bon

region;− Semi-aridtoAridinCentralTunisia;− DesertintheentireSouth.

Tunisiaisplanningtoreducethecarbonemissionintheenergysectorby43%in2030.Thisengagementissignificantfortheenergysectorthatis75%carbonintensive.Thereinforcementofenergyefficiencyactionsandthedevelopmentofrenewablewillallowachievingthistargetbysaving22MtCO2by2030.

Figure38:ImpactofRE&EEprojectsonCO2emissionsinTunisiaSource:ANME


34

References

Mainreports– "SecondeCommunicationNationaledelaTunisieàlaConventionCadredesNationsUniessurles

ChangementsClimatiques".RepubliqueTunisienne-Ministéredel'équipementetdel'environnement,2014;

– "INTENDEDNATIONALLYDETERMINEDCONTRIBUTION-TUNISIA,"REPUBLICOFTUNISIA-MinistryofEnvironmentandSustainableDevelopment,2015;

– "Africaneconomyoutlook-Tunisia,"PhilippeTraPe,Kaoutherabderrahim,2016;

– "RisingEnergy-ImportBillDeepensTunisia'aEconomicTroubles,"Bloomberg,2016;

– "ConjonctureEnergétiqueMai2015,"ONE,Ministeredel'energieetdesmines,2015;

– "ConjonctureEnergétiqueJuillet2016,"ONE,Ministeredel'energieetdesmines,2016;

– "RenewableEnergyCountryProfile,"RECREEE,2012;

– "FinalReportStudyontherenewableenergypotentialforelectricitygenerationfornationalconsumptioninTunisiaandexporttotheEU,"GIZ,,2013;

– "TunisianCountryProfile,"ENEL,2016;

– "Tendancesdel’efficacitéénergétiquedanslespaysdubassinméditerranéenTendancesdel’efficacitéénergétiquedanslespaysdubassinméditerranéen,"MEDENER,2014;

– "l'Afriqueetlesenergiesrenouvlables:lavoieverslacroissancedurable,"IRENA,2013;

– "TariffTable2014,"STEG,2014;

– L’ENERGIEENAFRIQUEAL’HORIZON2050.Jean-PierreFavennec,2009;

– "CountryBrief2014:Tunisia,"UNFCCC,2014;

– "Synthesestrategy2030,"ANME,2014;

– "DevelopmentofWindEnergyinAfrica,"AcademicArticle,byAlliD.Mukasa,EmellyMutambatsere,YannisArvanitis,andThourayaTriki,2013;

– "ConventionCadredesNationUniessurlesChangementsClimatiques-Contributionprevuedetermineeauniveaunational,"Ministèredel'environmentetduDéveloppementDurable,2015;

– "DevelopmentofRenewableEnergybySTEG:ChallengeandProspects,"STEG,2016;

– "PresentationParis10-2013,"IEA,2013.

– "ListedesCentralesSeptembre2014,"STEG,2014.

– "SWOTAnalysis:TunisianEnergySystem,"AcademicArticlebySoouhirHamami;HelmiAloui;NadiaChaker;RafikNeji,2015;


35

– "ExperiencesinrenewableeneryandenergyefficiencyinTunisia:Casestudyofdevelopingcountry,"AcademicArticlebyLoftiSaidi,FarhatFnaiech,2014;

– "Loin°12-2015Presentation,"ANME,2015.

– TransmissionItaly-Tunisiap.CountryProfileTunisiaRES4MEDNovembre2016CreaCarlo,DiIorioBice,GuzziBerardo,TERNA,2016,

MaininstitutionalwebsitesSociétéTunisienned'ElectricitéetdeGas(STEG)

steg.com.tn

MinistryofEnergy,MiningandRenewable.

http://catalog.industrie.gov.tn/dataset

AgenceNationaledelaMaitrisedesEnergies(ANME)

www.anme.nat.tn/

Mainmarketintelligence&technicalwebsites- (2015)WorldBankgroup:http://data.worldbank.org/indicator/

- (2014)QualityArticle-WikipédiaTunisia:https://fr.wikipedia.org/wiki/Tunisie

- (2014)Emploi.gov:emploi.gov.tn

- (2013)IEAonlineDatabase:http://www.iea.org/statistics/statisticssearch/report/

- (2014)REEEP/REN21/ReegleEnergyprofileTunisia:http://www.reegle.info/countries/tunisia-energy-profile/TN

- (2016)IRENAsunAtlas:http://irena.masdar.ac.ae/?map=748

- (2016)IRENAWindAtlas:http://irena.masdar.ac.ae/?map=488

- (2016)IRENADatabase:http://resourceirena.irena.org/gateway/countrySearch/?countryCode=TUN

- (2014)Energipédia:https://energypedia.info/wiki/Tunisia_Energy_Situation.

- (2016)WindAtlas:http://www.globalwindatlas.com/map.html

- (2016)Intech:http://www.intechopen.com/books/wind-farm-technical-regulations-potential-estimation-and-siting-assessment/wind-energy-assessment-of-the-sidi-daoud-wind-farm-tunisia

- (2016)Solar-Med-Atlas:http://www.solar-med-atlas.org/solarmed-atlas/pv_system

MainInterviews

- STEG-ER,2016;- STEG,2016;- ANME,2016;- MinistryofEnergy,MiningandRenewableEnergy,2016.

Annex1-TotalFinalEnergyConsumptioninTunisia–FinalConsumption2014

Source:IEA


Annex2-EnergyProductionandImportinTunisia-EnergyBalanceFlow2014

Source:IEA

Documents

Country Profile Tunisia - Report FINAL · PROSOL PROSOL Elec Power Purchase Agreement Solar Thermal Program Solar Program Photovoltaic (PV on the roof) PST Plan Solaire Tunisien(Tunisian