Tunisia (2012)

Degree of reliance on imported energy: 

<p>
In 2009, Tunisia imported 5,838 ktoe of energy resources, predominantly refined petroleum products (47.3%) and natural gas (31.9%). Exports in 2009, mostly crude from the country&rsquo;s upstream oil industry, were 4,239 ktoe. The contribution of net imports to the primary energy balance was 17.4% in 2009. Tunisia receives natural gas from a pipeline between Algeria and Italy that runs across Tunisian territory.</p>

Main sources of Energy: 

<p>
Total installed electricity capacity (2009, source: Consortium MVVdecon/ENEA/RTE-I/Sonelgaz/Terna): 4,030 MW<br />
Natural Gas: 91.4%<br />
Heavy Fuel Oil: 5.7%<br />
Hydro-electric: 1.6%<br />
Wind: 1.3%<br />
<br />
Total primary energy supply (2009, source: IEA): 9,200 ktoe<br />
Crude Oil: 19.8%<br />
Oil Products: 19.8%<br />
Natural Gas: 46.1%<br />
Comb. Renew. And Waste: 14.1%<br />
Hydroelectric/Wind/Electricity Imports: ~0.2%<br />
<br />
Tunisia produced an average of 79.5 thousand barrels of crude oil per day in 2010, 0.09% of the world and a change of -4.6 % compared to 2009. Biomass use is predominantly in rural areas.<br />
<br />
Total domestic electricity supply was 15,693 GWh in 2009, an increase of about 7% from 14,600 GWh in 2008.&nbsp;&nbsp;<br />
<br />
In general, the state-owned power utility has primarily relied on gas-fired power plants for generating electricity, fuelled by natural gas from the country&rsquo;s own reserves, and by imports from Algeria. 11% of the installed capacity comprises combined-cycle gas turbine (CCGT) power plants. Independent Power Producers (IPPs), feeding electricity into the public grid, account for approximately 500 MW (12%) of the available capacity.</p>

Country: 

Tunisia

Extent of the network: 

<p>
According to estimates by the state-owned utility company, the degree of electrification for Tunisia as a whole was 99.5% in 2008. In rural areas, the figure was 99%, while 99.8% of the urban areas had access to electricity. Grid coverage is poorest in the south-east of the country. The high connection rate is the result of constant efforts by the government over the past 30 years. In the 1970s, only 6% of the rural population were connected to the power grid, while around 1990 the figure was still only about 50%.<br />
<br />
In 2009, the transmission network length of the country reached 5,787 km, of which 2,787 km were 225 kV, 1,812 km were 150 kV, and 1,188 km of 90 kV. Distribution networks covered 142,513 km of lines in 2009, 50,654 km of medium voltage, and 91,859 km of low voltage. The transmission network is connected to Europe through networks in Algeria and Morocco. Interconnection with Libya will allow for the possibility of, interconnection from Syria through Libya, Egypt and Jordan.</p>

Capacity concerns: 

<p>
The growing economy of Tunisia and rising living standards led to a significant increase of electricity consumption, resulting in the saturation of the grid. In addition, some power plants and facilities are no longer appropriate to the actual load of the network. As a consequence, overload, losses and high voltage drops occur on a frequent basis. To address these issues, the Electricity Distribution Network Rehabilitation and Restructuring Project has been launched. Transmission and distribution losses in 2009 were 2,045 GWh, or 13% of the total domestic supply.<br />
<br />
Demand for energy in Tunisia is rising as a result of the growing economy. Compared to its neighbouring countries, domestic fossil energy sources in Tunisia are limited. In 2009, the peak load in public supply was 2,660 MW, representing an increase of 193 MW or 7.8% compared to 2008.</p>

Potential for Renewable Energy: 

<p>
<u>Solar energy</u><br />
Surprisingly, renewable energy in Tunisia is not based primarily on solar power, even though this would seem to be the most abundant national renewable resource.&nbsp; Although the country has a very high solar potential with more than 3,200 hours of sunshine per year, and an average daily insolation of 5.0-5.5 kWh/m2, production of solar energy is still not considered cost competitive enough, and is largely limited to use in domestic water heating systems and in certain community projects. It is only now that the private sector is beginning to explore the commercial applications for solar power in Tunisia, which until recently were not sufficiently cost-effective. Solar water heaters contributed approximately 44 ktoe to the primary energy supply in 2011, and targets set in 2008 were to achieve a total solar water heater capacity of 740,000 m2 by the end of 2011. The 2010-2016 Solar Plan covers 40 potential solar projects, and when completed, is expected to reduce national energy consumption by 660 ktoe per annum, compared to a business-as-usual scenario.<br />
<br />
<u>Wind energy</u><br />
The development of wind energy, which does not immediately spring to mind when considering possible renewable sources in the sun-baked North African country, is expanding fast.&nbsp; Studies indicate that Tunisia could eventually generate 1,000 MW from wind energy, and when newly launched projects are completed, this source will account for 4% of national energy production, compared with 3% in Europe and only 1% in North America. Several sites have been identified as having good potential for the use of wind power, with average wind speeds of 5.9-7.5 m/s at 80m. Wind power generation sources totalled 240 MW in 2011, with a contribution of 144 ktoe to the national energy supply, including the 55 MW, STEG-operated El Haouaria wind farm. STEG is commissioning a further 186 MW of wind capacity at Bizerte, expected to be fully operational by September 2010.<br />
<br />
<u>Biomass energy</u><br />
Traditional wood and charcoal fuels are still utilised in some rural households. Projects are in place to disseminate more efficient biomass stoves. The potential for biomass gasification has been identified - a pilot project involving gasification through poultry waste has been launched. In addition, CDM projects have been established in conjunction with Deutsche Gesellschaft f&uuml;r Internationale ZusammenarbeitAssistance (GIZ) utilising biomass energy. A 10 MW waste-to-electricity project at the Jebel Chakir landfill has also recently been implemented. Domestic production of organic waste was estimated at about 6 million tons/year in 2009: 2.2 million tons of household waste; 2.2 million tons from farms and agro-industry; 1 million tons from olive oil processing; 400,000 tons from poultry droppings and 200,000 tons from waste water treatment.4. A proposed Government project, in collaboration with the World Bank, focuses on the rural/agro-business production of biomass.<br />
<br />
<u>Geothermal energy</u><br />
Tunisia has a substantial geothermal potential, primarily thermal waters. Utilisation currently extends to the heating of greenhouses, spas, resorts and other heat-dependent activities as well as being used in ice production. Geothermal resources are taken from the &lsquo;Continental Intercalaire&rsquo; aquifer: the deep aquifer or CI, which is characterized by relatively hot water (between 30 and 80&deg;C) and depths reaching 2,800 m. The resources are located in a reservoir of 1,000,000 km&sup2; which covers the regions of Kebili, Tozeur, Gabes and the extreme south, and extends to Algeria and Libya.<br />
<br />
<u>Hydropower</u><br />
By 2008, 62 MW of hydro-electric power generation capacity was installed in the country. 17 ktoe was contributed to the 2011 primary energy balance from hydropower. Tunisia&#39;s gross theoretical hydropower potential was estimated at 1,000 GWh/year in the mid-1990s, with a technically feasible potential of 250 GWh/year. The construction of 9 further small- and mini-hydro plants, with sizes ranging from 250 kW to 3 MW, is currently ongoing.</p>

Potential for Energy Efficiency: 

<p>
Tunisia established a program in 2000 for the control of energy use.<br />
<br />
The Tunisian National Agency for Energy Efficiency (ANME) developed a strategic plan, which covers several fields, including:</p>
<ul>
<li>
Development and execution of the national programs of energy efficiency;</li>
<li>
Development of the legal and lawful framework relating to the energy efficiency;</li>
<li>
The granting of the tax and financial incentives for EE;</li>
<li>
The set-up of training, education courses, and information dissemination;</li>
<li>
The support of the research and the development and realisation of demonstration projects;</li>
<li>
The encouragement of the deprived investment in this sector.</li>
</ul>
<p>
<br />
The results obtained by Tunisia at the energy intensity level are encouraging. This helps to rank it among the most efficient developing countries in terms of EE. Thus, the radiant intensity (0.42 KEP/1000$ PIB) fell since 1985, the creation date of the National Agency for EE, to a level of 0.360 KEP/1000$ PIB in 2004 (against 0,583 in Algeria and 0,146 in Italy). Energy consumption per capita in 2009 stood at 0.88 toe. The residential sector contributed most to final energy consumption (30.6%), followed by the industrial and transport sectors (25.1% and 23.6% respectively). The potential for improved energy efficiency in buildings, in particular, has been previously recognised, and demonstration projects for new techniques in construction have been in operation in the country since 1999.<br />
<br />
<strong>Industry</strong></p>
<ul>
<li>
Removal of barriers to the creation of a sustainable market for energy efficiency products through World Bank projects.</li>
<li>
Promotion of ESCOs, through GEF loans.</li>
<li>
&ldquo;Energy Efficiency Project&rdquo; with WB to scale up industrial EE and cogeneration investments (to be implemented in 4 years).</li>
</ul>
<p>
<strong>Utilities</strong></p>
<ul>
<li>
Promotion of the use of renewable energy sources, including biogas and wind power, through the ANME, targeting 4% contribution to the national energy mix by 2016.</li>
<li>
By 2014, installation of 535MW of RE energy plants. Additional 350,000m2 solar heating systems. &nbsp;</li>
<li>
By 2016, solar electricity installation of 460MW.&nbsp; Interconnection with European Electricity Grid to export up to 1000MW (800MW gas and 200MW RE).</li>
</ul>
<p>
<strong>Transport</strong></p>
<ul>
<li>
New municipal rail projects to reduce atmospheric pollution.</li>
<li>
ESMAP-funded transport sector efficiency studies.</li>
</ul>
<p>
<strong>Residential</strong></p>
<ul>
<li>
Mandated improvements in building insulation, windows, refrigeration and lighting.</li>
<li>
Mandatory minimum efficiency standards and labelling schemes for new refrigeration equipment and air conditioning.</li>
<li>
By the end of 2014, total abandonment of non-EE lamps and electrical parts marketing. &nbsp;</li>
<li>
Locally sourced EE lighting and solar water heaters.</li>
</ul>
<p>
<strong>Public</strong></p>
<ul>
<li>
Creation of the National Fund for Energy Efficiency Subsidies.</li>
<li>
Capacity-building measures, as well as the creation of an energy information system.</li>
</ul>

Ownership: 

<p>
<b>Electricity market</b><br />
Until 1996, the monopoly on electricity generation and marketing was held by the Soci&eacute;t&eacute; Tunisienne d&rsquo;Electricit&eacute; et du Gaz (STEG, <a href="http://www.steg.com.tn">www.steg.com.tn</a>). Since then, liberalisation of the energy market has taken place, and the market was opened for IPPs. However, with a market share of 88%, the STEG still is the largest player in the power market. Since 1999, it has also been permitted for gas extraction companies to operate gas-fired power plants without a preceding bidding procedure, and to sell the generated electricity to the STEG.<br />
<br />
Next to the STEG, Large Energy Consuming Industries (IGCElec.) were encouraged to produce power for their own needs. The surplus they produce is fed into the national grid. Installed capacity is contributed to by the following IGCElec. Companies:</p>
<ul>
<li>
Cimenterie d&rsquo;Oum Klil</li>
<li>
Cimenterie de Bizerte</li>
<li>
Cimenterie de Jbel Ouest</li>
<li>
Ciments Blancs (SOTACIB)</li>
<li>
Cimenterie de Gabes</li>
<li>
El Fouledh</li>
</ul>
<p>
<br />
Two IPPs generate electricity for feed-in to the national grid:</p>
<ul>
<li>
Carthage Power Company (CPC, 471 MW in 2008) is an independent power project formed by PSEG Global and the Marubeni Corporation. It owns and operates a generation facility located in Rades in north-eastern Tunisia. The power plant, which meets about one-quarter of the country&rsquo;s electricity needs, is a combined-cycle co-generation facility that uses natural gas as the primary fuel, with diesel fuel as backup. Gas is sourced from Algeria and BG Tunisia&rsquo;s Miskar concession. The state-owned STEG buys all the output under a 20-year power purchase agreement. PSEG sold its stake in the company in May 2004 to BTU Power Company, a regional energy investment group.</li>
<li>
Soci&eacute;t&eacute; d&rsquo;Electricit&eacute; d&rsquo;El Bibane (SEEB, 2x27 MW gas turbines) is the second power plant in Tunisia constructed under legislation allowing independent operations to utilise natural gas as fuel. Electricity generated from the plant is sold to the STEG under a long term power purchase contract.</li>
</ul>
<p>
<br />
<b>Liquid fuels and gas market</b><br />
The state-owned Tunisian Petroleum Enterprise (Enterprise Tunisienne d&rsquo;Activit&eacute;s, ETAP, <a href="http://www.etap.com.tn">www.etap.com.tn</a>), is the industrial and commercial company responsible for the management of oil and gas exploration and production on behalf of the state, while the Tunisia Refining Industries Company (Soci&eacute;t&eacute; Tunisienne des Industries de Raffinage, STIR, <a href="http://www.stir.com.tn">www.stir.com.tn</a>) is in charge of oil and gas refining, and the regulation of fuel prices.&nbsp; The former Soci&eacute;t&eacute; Nationale de Distribution du P&egrave;trole (SNDP) became a public-limited company, AGIL S.A. (http://www.sndp.com.tn/) in 2000. The company is responsible for the national distribution and marketing of petroleum products.</p>

Structure / extent of competition: 

<p>
In 1996 the government withdrew STEG&#39;s monopoly for power generation in a move to allow private power generation projects. In 2002, Tunisia&rsquo;s first IPP project commenced operation, with the Rades power project, operated by the Carthage Power Company. The SEEB plant first commenced commercial operations in 2003. STEG, a state-owned utility, is still the sole organisation responsible for transmission and distribution (and retains control of the existing power generation facilities).<br />
<br />
The ETAP and STIR, and AGIL S.A., are all owned entirely by the Tunisian state. Whilst petroleum sector activities are unbundled, each company holds a monopoly in its sector.</p>

Existence of an energy framework and programmes to promote sustainable energy: 

<p>
National targets published in 2009 are to reach a 10% (4% excluding biomass) RE share in primary energy consumption by 2010.&nbsp; Expert studies state that in 2030, a 6.5% share (excluding biomass) will be achieved. Tunisia signed the statute of the International Renewable Energy Agency (IRENA) in April 2009. Energy policy with regard to renewable energies and energy efficiency is drafted mainly in the Four Year Programme for Energy Management 2008 &ndash; 2011. Expected consequences of this strategy include: a reduction of the subsidies granted by the state to the energy sector (in 2007, Egypt and Tunisia announced a plan to phase out energy subsidies), a reduction of CO2 emissions, and future profits from the Clean Development Mechanisms.<br />
<br />
In 2008, Tunisia&rsquo;s National Agency for Energy Conservation released the Renewable Energy and Energy Efficiency Plan. Besides contributing to the above mentioned 10% target, this program is expected to result in a 20% reduction of energy demand by 2011.<br />
<br />
The main renewable capacity developments are expected to be 180 MW of wind energy, by 2011. The government further aims to increase the installed PV energy capacity to 740.000 m2 in 2011. Currently, about 300.000 m2 of PV panels have been installed. Large wind projects are currently being developed, or are in the application process. EE is recognised as important, and is being addressed in energy policies. Public interventions via financial support from the state and the mobilisation of international financial resources have been decisive in the development of energy conservation in Tunisia.<br />
<br />
Law No. 2004-72 on the rational use of energy defines the sensible use of energy as a national priority, and as the most important element of an effective policy for sustainable development.<br />
The law states three principal goals: energy saving, the promotion of renewable energy sources, and the substitution of forms of energy currently used for renewable/sustainable options, wherever this offers technical, economic and ecological benefits.<br />
<br />
Since 2005, and with the adoption of above mentioned law and the creation of a national energy fund (subject to the Law N&deg; 2005-106), Tunisia has set the political framework to increase energy efficiency and develop renewable energy sources.<br />
<br />
De-carbonisation of the energy sector and the de-coupling of economic growth and GHG emissions have occurred.<br />
<br />
Under the 2008 Renewable Energy Plan, a major effort was planned to develop renewable energy applications as a means for rural electrification, and for use in the agricultural sector. The specific objectives that were defined are as follows:<br />
- Installation of 63 pumping stations and water desalination,<br />
- Installation of 200 water pumping stations for irrigation systems by hybrid,<br />
- Equipment of 200 farms with biogas units for domestic use,<br />
- Installation of two industrial units connected to the network for the combined heat and power from biogas.<br />
<br />
Specifically for rural electrification:<br />
- Electrification of 1,000 rural households by hybrid systems,<br />
- Electrification of 1,700 rural households by PV systems,<br />
- Electrification of 100 farms and tourist centers by hybrid systems.<br />
<br />
The 2010 Energy Efficiency and Biomass Project, in collaboration with the World Bank, seeks to develop biomass energy sources as an alternative to fossil fuels in the country, through:<br />
(i) the promotion of energy efficiency/cogeneration through facilitation to disbursement of existing WB EE/Cogeneration credit line to commercial banks, and<br />
(ii) the development of biomass potential with implementation of a pilot project and capacity-building activities through technical assistance, direct investment funding and capacity building,<br />
<br />
Decree 2009-262 establishes financial incentives with a range of options for the introduction of renewable energy in rural and agricultural facilities. Grants are paid to the supplier of the equipment after installation. For electricity generation in agriculture, a grant of 40% of the investment cost, with a maximum project cost of 20,000 TND, is available for lighting and water pumping in rural areas when make use of solar or wind energy. Financial assistance is available for biogas through a grant of 40% of the investment cost, also with a 20,000 TND project ceiling, for the production of biogas in farms, and 20% subsidy of the investment cost with a ceiling of 100,000 TND is offered for combined heat and electricity from biogas plants. For solar buildings, a subsidy of 30% of the investment is offered with a maximum of 3,000 TND/kW and 15,000 TND/house.</p>

Current energy debates or legislation: 

<p>
A number of developments are being made in the Tunisian Energy Sector. In April 2009, France signed a &euro;80 million aid deal to help Tunisia develop civil nuclear technology.. The STEG is improving power distribution by constructing overhead and underground lines. Also, a &euro;2 billion joint venture between STEG and Italy&rsquo;s Terna will integrate the countries&rsquo; electrical grids. STEG will construct a power plant in El Haouaria, and a submarine connection with Sicily, operational by 2014. The power plant&rsquo;s 1,200 MW capacity will be split into 400 MW for the domestic market and 800 MW for export to Italy. STEG will also encourage consumers to install photovoltaic panels by covering about 20% of the installation cost, and the organization plans to have a solar power plant operational by 2015 with a capacity of 50MW.</p>

Major energy studies: 

<p>
A huge boost for Tunisian RE is the Mediterranean Solar Plan (MSP), set out as part of the Union for the Mediterranean project (UPM), which is now in its pilot phase (2009-11). UPM&rsquo;s underlying idea is to set out a policy framework for renewable energy and energy efficiency, in light of potential climate change issues the region might face in the future.&nbsp; Following this pilot phase, the MSP will go through a deployment phase (2011-20), which is expected to be financed by the World Bank and the European Development Bank, with the ultimate goal of setting up an effective green electricity import-export framework under the Trans-European Networks initiative. As part of this framework, Tunisia will develop some 26 RE projects, which are expected to enable a five-fold increase in the electricity generated from renewables.<br />
<br />
Tunisia is also a member of the African Maghreb Union, a regional grouping of North African countries, to promote regional integration and co-operation in terms of trade, including electrical inter-connection. The Maghreb Countries Interconnection Project included connecting the Libyan grid to the Tunisian grid, using 220kV transmission lines; interconnecting the Tunisian grid with the Algerian grid, on 400kV, and interconnecting the Algerian grid to the Moroccan grid, using the same voltage.</p>

Role of government: 

<p>
The Ministry of Industry and Energy (Minist&egrave;re de l&rsquo;Industrie, de l&rsquo;Energie et des Petites et Moyennes Entreprises; TMIE, <a href="http://www.industrie.gov.tn">www.industrie.gov.tn</a>) is the main governmental actor in the energy sector. The Directorate General for Energy of the Ministry of Industry and Energy is responsible for energy infrastructure planning and the implementation of national energy policy.<br />
<br />
<u>CSPIE and CIPIE</u><br />
Most of the state actors in the energy sector are accountable to the Ministry. These also include the Commission Sup&eacute;rieure de la Production Ind&eacute;pendante d&rsquo;Electricit&eacute; (Superior Commission of Independent Electricity Production; CSPIE) and the Commission Interd&eacute;partementale de la Production Ind&eacute;pendante d&rsquo;Electricit&eacute; (Interdepartmental Commission of Independent Electricity Production; CIPIE), which were both set up in 1996.<br />
<br />
The Ministry of Agriculture, Environment and Water Resources (Minist&egrave;re de l&rsquo;Agriculture et des Ressources Hydrauliques, <a href="http://www.onagri.nat.tn">www.onagri.nat.tn</a>) is responsible for the exploitation of hydropower. The CSPIE decides public tender processes and awards contracts to IPPs. It also passes rulings on tax incentives for investors. The inter-ministerial CIPIE carries out preliminary work for the CSPIE by selecting projects for tendering, contractual negotiations between the IPPs and the Energy Ministry, and securing public subsidies on a case-by-case basis.</p>

Government agencies in sustainable energy: 

<p>
<u>National Agency for Energy Management (Agence Nationale pour la Ma&icirc;trise del&rsquo;&Eacute;nergie &ndash; ANME, http://www.anme.nat.tn/)</u><br />
The former Tunisian agency for renewable energies, the Agence Nationale des Energies Renouvelables (ANER), was founded in 1985. Under Law No. 2004-72 of20 04, the national Tunisian energy agency, the Agence Nationale pour la Ma&icirc;trise del&rsquo;&Eacute;nergie (The National Agency for Energy Management; ANME), succeeded ANER. ANME is accountable to the Ministry of Industry and Energy. Its tasks comprise translating ministerial policy directives into practice, including the safeguarding Tunisian energy supplies in the long term.<br />
<br />
<u>Tunis International Centre for Environmental Technologies (Centre International des Technologies de l&rsquo;Environnement de Tunis &ndash; CITET, http://www.citet.nat.tn/)</u><br />
1996 saw the founding of the Centre International de Technologies de l&rsquo;Environnement de Tunis (CITET), which has the task of promoting environmental technologies. It is accountable to the Tunisian Ministry of the Environment.</p>

Energy planning procedures: 

<p>
Many new developments are also under way in wind power production, which will increase the share of RE in the electricity supply. Tunisia will build two wind-power facilities in Bizerte with a combined production capacity of 120 MW, saving the country 120,000 toe of fuel and 43,000 cubic metres of water a year, as well as reducing carbon dioxide emissions. The Metline and Kchabata stations are to be built for an estimated cost of &euro;200 million. A loan from the Spanish Fund of Assistance to Development (SFAD) will finance part of the project. A project to set up 26 additional air generators at the two plants will extend capacity to 190 MW at a cost of &euro;190 million to be funded by the SFAD. Wind farms currently produce 6% of domestic electric needs.</p>
<p>
Italian-owned Moncada Energy has, in addition, proposed plans to build a 500 MW wind farm in Tunisia with an undersea power link to Europe, as well as 200 MW of solar installations over a four-to-five year time period.</p>
<p>
Industries are encouraged to install wind-based energy generation facilities, and new legislation means any unused surplus (up to 30% of total production) can be sold back to STEG, whose long-established wind farm on Cap Bon, with an installed capacity of 55 MW, is soon to be joined by the three new plants near Bizerte.</p>
<p>
Further financial schemes applicable to the energy market are the National Fund for EE and RE of 2005, and the PROMO-ISOL program financed by the National Fund for Energy Conservation (FNME). However, according to local sources, PROMO-ISOL is still at the planning stage. Finally, the National Fund for Energy Conservation (FNME), subject of Law N&deg; 2005-106, offers financial resources for supporting EE and RE investments, based on the granting of allowances.</p>
<p>
<b><i><u>Tunisian Solar Plan</u></i></b></p>
<p>
In 2009, the government launched the Tunisian Solar Plan (TSP), comprising of 40 projects, several of which aim to produce electricity through solar and wind power, with the view to saving some 660 metric tonnes of oil a year, representing 22% of the total production of energy by 2016. 29 of these projects will be implemented by the private sector and five by the public sector, of which three are already being implemented by the STEG. The international cooperation will finance five projects, one of them being the establishment of an international training centre and an international laboratory for solar energy technologies, mainly for photovoltaic and solar thermal technologies. The final project is the creation of a new enterprise. STEG Renewable Energies, which aims to guarantee the smooth implementation of the whole plan. TSP aims to reduce carbon dioxide emissions by 1.3 million metric tonnes a year.</p>

Energy regulator Date of creation: 

<p>
The National Agency for Energy Management (ANME, <a href="http://www.anme.nat.tn">www.anme.nat.tn</a>), established by the Law No. 2004-72 of 2 August 2004, has, as part of its mandate, responsibility for regulating the energy sector in the country.</p>

Degree of independence: 

<p>
The ANME is a non-administrative public entity, accountable to the Ministry of Industry and Energy. Funding for the organisation comes from the state budget, and from any foreign grants and loans accrued by the organisation.</p>

Regulatory framework for sustainable energy: 

<p>
The law on energy conservation, dated August 2004, has been amended by the law of February 9, 2009, to allow independent production of electricity based on RE, meaning that large consumers of electricity will be able to produce electricity for their own consumption from renewable sources, and sell their electricity surplus into the grid. Large electricity consumers will be allowed to re-distribute up to 30% of their wind energy production, in particular. The STEG will buy this electricity at domestic market prices; however, no specific incentives are available to promote mass-scale production. Article 7 of Act 2009-7 (February 2009) gives to any institution or group of institutions engaged in industry or in the service sector, equipped for its own use with an energy efficient cogeneration facility, the right to transport the electricity produced on the national grid to its consumption points and the right to sell surpluses exclusively to STEG, up to a given upper limit in the frame of a standard contract approved by the ANME.<br />
<br />
Moreover, the following tax incentives are in place for EE and RE:</p>
<ul>
<li>
Reduction of customs duties to the minimum rate of 10% (from a general rate of 18%) and exemption from VAT for imported equipment used for EE or RE, for which no similar equipment is manufactured locally;</li>
<li>
Reduction of customs duties and exemption from VAT for imported raw materials and semi-finished products entering into the production of equipment used in the field of EE and RE;</li>
<li>
Exemption from VAT for locally manufactured raw materials and semi-finished products entering into the production of equipment for EE and RE;</li>
<li>
Exemption from VAT for equipments manufactured locally and used in the field of energy conservation or of renewable energies.</li>
</ul>

Regulatory roles: 

<p>
The activities of the ANME in the sector include the design and implementation of national energy conservation programs: preparing and implementing the legal and regulator framework for energy conservation and efficiency; management of the National Energy Conservation Fund (FNME), and hence management of financial incentives for sustainable energy use, capacity-building and awareness-raising of energy conservation issues, as well as for renewable energies, and encouraging investment in the energy sector through the granting of tax and financial incentives.</p>

Role of government department in energy regulation: 

<p>
The CSPIE and the CIPIE are both indirectly involved in regulation of the energy sector, due to their involvement in license-granting for IPP projects, as well as the formulation of financial incentives for the establishment of such projects.</p>

Regulatory barriers: 

<p>
Programmes such as the Mediterranean Solar Plan are a huge opportunity for the country to develop its alternative energy market.&nbsp; However, now that Tunisia has its renewable plan defined, and the political will has been mobilised, the challenge will be to ensure that investments are made in a constructive and beneficial way, by, for example, developing a local industry, encouraging knowledge transfer, and fostering a research and innovation.<br />
<br />
If Tunisia is looking at developing RE on a large scale and exporting sustainable power to Europe, the price for electricity generated by renewable sources needs to be set up above market rates. While Elemd&rsquo;s interconnection cable is being built, such a policy would convince many investors to enter the market, and prepare the country to respond to the higher demand by developing production capacity.<br />
<br />
Any detriment to the development of the Tunisian energy sector due to the 2011 revolution appears to have been limited. New power projects are continuing to be implemented, and operation of the country&rsquo;s electricity sector appears to have been unaffected. Whilst a range of financial mechanisms are available for the promotion of renewable energy sources in the country, STEG does not offer a guaranteed purchase price for self-generated electricity within the framework of a standard feed-in tariff, and as such, the current purchase agreement program that STEG operates for self-producers of electricity offers no real incentive to renewable energy producers.</p>

References: 

IEA Energy Statistics (2009). Available at:&nbsp;<a href="http://www.iea.org/countries/non-membercountries/tunisia/">http://www.ie... [Accessed 19th September 2013]<br />
<br />
Paving the Way for the Mediterranean Solar Plan. Tunisia Country Report. November 2011. Available at: <a href="http://www.enpi-info.eu/library/sites/default/files/attachments/Country-... [Accessed 19th September 2013]<br />
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