Tunisia - Country Profiles

Page created by Julio Gibbs
 
CONTINUE READING
Tunisia - Country Profiles
Country
Profiles

    Tunisia

           November
               2016
Tunisia - Country Profiles
!"#$%&'()*+(,&
&
!"#$%"&' (!)*)+,-.)' "*)/01' #2.3452*6' 72/' 48)' %)954)//,*),*:' 56' ,' *2*;2*0' 345.545)6?' 5*9364/5)6?' ,0)*=5)6?' 4)=8*5=,.' 6)/@5=)' 56652*' 42' 636',4'-35.95*0','95,.203)'+548'!)052*,.'C*64543452*6?'.2=,.'D2@)/*>)*46?',*9'!)03.,42/1'
-295)6'-1'29).'6)4'3)',*9'42',..'856'=2..),03)6'7/2>'#H"D'"!?'72/'48)5/'
8).' !"#$%"&' 72/' 48)5/' 63'
(#H"D'"!:'R'O,95,'T=85*5'(IO%":'R'L)2*,/92'G,.,-/)6)'(!"#$%"&:'R'Q,485'P,*=85'(IO%":'R'I-9)66,.)>'
".' U8,V)*' (IO%":' R' #23,9' I-/23035' (IO%":' R' I-9).8,>59' U8,.7,..,8' (%5*564/1' 27' "*)/01?' %5*5*0?' ,*9'
!)*)+,-.):' R' G/),' G,/.2' (H"!OI:' R&5' C2/52' T5=)' (H"!OI:' R' D3VV5' T)/,/92' (H"!OI:' R' !2-)/4,' L36,/95'
("O"L'D/))*'K2+)/:'R'G,48)/5*,'D52/05'("O"L'D/))*'K2+)/:'R'%,3/2'G265>2'("O"L'D/))*'K2+)/:B'
9#/%;-%=!

"#$%&!'&()*!
+,-./,'!0!+&1&2#34&!,1&%56!-)4$(7)18!9)%!(:&!/&;7(&%%#1&#1!!
!?.!@!+)A&!
BCD!EF!GHHIICF!
8&*%&(#%7#(J%&8.A&;K)%5!!
:((LMNN222K%&8.A&;K)%5N71;&OKL:L&&
'
'
                                  =:78!8($;6!:#P&!3&&1!L%&8&1(&;!;$%715!(:&!9)%$A!

                             !                                                               !
'
'
Tunisia - Country Profiles
Table of Contents

ABSTRACT .......................................................................................................................................................................................... 1
1 MACROECONOMIC & GLOBAL ENERGY CONTEXT ....................................................................................................................... 2
  1.1 Macroeconomic context ....................................................................................................................................................................... 2
  1.2 Global Energy market ............................................................................................................................................................................ 4
2 POWER OVERVIEW IN TUNISIA .................................................................................................................................................... 5
  2.1 Legislative and regulatory framework .......................................................................................................................................... 6
  2.2 Electricity key stakeholders ............................................................................................................................................................... 8
  2.3 Power Market Structure ....................................................................................................................................................................... 9
  2.4 Power Demand .......................................................................................................................................................................................10
  2.5 Power Supply ..........................................................................................................................................................................................11
  2.6 Grid & Infrastructure ...........................................................................................................................................................................13
  2.7 Electricity prices ....................................................................................................................................................................................15
3 RENEWABLE ENERGY & ENERGY EFFICIENCY .......................................................................................................................... 16
  3.1 Current Situation ...................................................................................................................................................................................16
     3.1.1 Renewables ......................................................................................................................................................................................... 16
     3.1.2 Energy Efficiency .............................................................................................................................................................................. 19
  3.2 Potential ....................................................................................................................................................................................................21
     3.2.1 Energy Efficiency .............................................................................................................................................................................. 21
     3.2.2 Renewable ........................................................................................................................................................................................... 21
  3.3 Framework for RE & EE development .........................................................................................................................................24
     3.3.1 Strategy, Targets and Key Issues. .............................................................................................................................................. 24
     3.3.2 Legislative and regulatory framework ................................................................................................................................... 26
     3.3.3 Feed in Tariff ...................................................................................................................................................................................... 27
     Focus on IPP ...........................................................................................................................................................................................................
  3.4 Future Projects Development ..........................................................................................................................................................28
     3.4.1 Renewables Projects ....................................................................................................................................................................... 28
     Focus on the future interconnection cable Tunisia - Italy by TERNA ...........................................................................................
     3.4.2 Energy Efficiency Projects ............................................................................................................................................................ 32
4 SOCIAL & ENVIRONMENTAL CONTEXT ..................................................................................................................................... 33
  4.1 Social ...........................................................................................................................................................................................................33
  4.2 Environment............................................................................................................................................................................................33
ANNEX 1 - TOTAL FINAL ENERGY CONSUMPTION IN TUNISIA – SYSTEM OVERVIEW ........................................................................
ANNEX 2 - ENERGY PRODUCTION AND IMPORT IN TUNISIA - SYSTEM OVERVIEW ............................................................................
Tunisia - Country Profiles
Abbreviations

ANME      Agence Nationale pour la Maîtrise de l’Energie
          (National Agency for Energy Conservation)
CCGT      Combined Cycle Gas Turbine
CSP       Concentrated Solar Power
DSO       Distributor System Operator
EE        Energy Efficiency
EIB       European Investment Bank
EPC       Engineering Procurement Construction
EU        European Union
FNME      National Fund for Energy Management
FTE       Fund for the Energy Transition
FiT       Feed-in-Tariff
GDP       Gross Domestic Product
GW        Gig watt
IEA       International Energy Agency
IPP       Independent Power Purchase
JICA      Japan International Cooperation Agency
KWh       Kilowatt Hour
MIT       Ministry of Industry in Tunisia
MoU       Memorandum of Understanding
MW        Megawatt
MWh       Megawatt per hour
O&M       Operation and Maintenance
ONE       Observatoire National de l’Energie (National Energy Observatory)
PPA       Power Purchase Agreement
PROSOL    Solar Thermal Program
PROSOL    Solar Program Photovoltaic (PV on the roof)
Elec
PST       Plan Solaire Tunisien (Tunisian Solar Plan)
PV        Photovoltaic
RE        Renewable Energy
RFP       Request for Proposal
SPV       Special Purpose Vehicle
STEG      Société Tunisienne d’Elèctricité et de Gaz (Tunisian Company for Gas & Electricity)
STEG ER   STEG Renewable Energy
TOE       Ton of Oil Equivalent
TPA       Third Party Agreement
TSO       Transmission System Operator
TWh       Terawatt Hour
Tunisia - Country Profiles
List of Figures
Figure 1: Tunisian GDP Growth & Prospectives ........................................................................................................................ 2
Figure 2: Tunisia's Collapsing Oil Production............................................................................................................................. 3
Figure 3: Tunisia Energy Balance .................................................................................................................................................... 4
Figure 4: Global Energy Profile Tunisia......................................................................................................................................... 4
Figure 5 Global Energy Production in Tunisia ........................................................................................................................... 5
Figure 6: Power production Mix 2014 (19 TWh) ..................................................................................................................... 5
Figure 7: Tunisian Electricity Market Overview........................................................................................................................ 9
Figure 8: Consumption repartition by Sector Mars 2015 (HT&MT) .............................................................................. 10
Figure 9: Electricity Consumption evolution & repartition by sector........................................................................... 10
Figure 10: Tunisian population evolution & Energy consumption per capita ........................................................... 10
Figure 11: Electricity Production 2015 per producer in GWh .......................................................................................... 11
Figure 12: Repartition of STEG Electricity Production GWh ............................................................................................. 11
Figure 13: Evolution of the Electricity Production by Producer ..................................................................................... 11
Figure 14: Electricity production per sources .......................................................................................................................... 12
Figure 15: Installed Power Capacity 2014 ................................................................................................................................. 13
Figure 16: Tunisian Electricity Grid .............................................................................................................................................. 14
Figure 17: Renewable Electricity Growth .................................................................................................................................. 16
Figure 18: Part of renewable in the electricity Production ................................................................................................ 16
Figure 19: Renewable installation in Tunisia 2016 ............................................................................................................... 16
Figure 20 : Bizerte Wind Farm (Kchabta) .................................................................................................................................. 17
Figure 21 : Sidi-Daoud Wind Farm position map.................................................................................................................... 17
Figure 22 : Bizerte Wind Farm (Kchatba) .................................................................................................................................. 18
Figure 23: Bizerte Windmill Models (Kchabta) ....................................................................................................................... 18
Figure 24: Energy Intensity evolution in Tunisia.................................................................................................................... 20
Figure 25 Solar Energy Potential 2016 (Topography/Global Horizontal Irradiance/Direct Normal
Irradiance) ............................................................................................................................................................................................... 21
Figure 26: Yearly Tendency of solar Irradiation ..................................................................................................................... 21
Figure 27: PV Potential production per Month ........................................................................................................................ 22
Figure 28: Wind Potential in Tunisia 2016 (Terrain/Wind speed/Power Density) ............................................... 22
Figure 29: Wind Speed Frequecy Tunisia 2016 ....................................................................................................................... 23
Figure 30: Yearly wind speed Cycle (normalized).................................................................................................................. 23
Figure 31: Location with Wind Potential in Tunisia .............................................................................................................. 23
Figure 32: ER Installed Capacity MW ........................................................................................................................................... 24
Figure 33: Percentage of RE in the energy Mix ........................................................................................................................ 24
Figure 34: Keys for the success of the Tunisian strategy..................................................................................................... 25
Figure 35: STEG Renewable Projects ........................................................................................................................................... 28
Figure 36: Install Capacity Evolution according to the Tunisian Solar Plan ............................................................... 29
Figure 37: Current and Planned transmission connection with Tunisia ...................................................................... 30
Figure 38: Impact of RE & EE projects on CO2 emissions in Tunisia ............................................................................. 33
Tunisia - Country Profiles
List of Tables
Table 1: Tunisia - Country Identity ................................................................................................................................................. 2
Table 2: Tunisia - Economic Key Indicators ................................................................................................................................ 3
Table 3: Tunisia - Energy Sector Key Indicators ....................................................................................................................... 3
Table 4: Power market Overview Tunisia - Key Data ............................................................................................................. 5
Table 5: Law classification by Topics ............................................................................................................................................. 7
Table 6: Main Energy Tunisian Actors ........................................................................................................................................... 8
Table 7: Tunisian Power Installation (Except solar facilities) .......................................................................................... 13
Table 8: Tunisian Electricity Tariff 2014 .................................................................................................................................... 15
Tunisia - Country Profiles
Abstract

In recent years, Tunisia has set in motion an energy transition as a strategy to deal with a changing
economic and energy context. Population growth and depleting gas resources have had a significant
impact on the country’s energy balance. In 2001, the country became a net energy importer after many
years of surplus power generation and the gap between production and demand is growing every year.
Tunisia’s energy dependency reached 40% compared to previous years and this number will likely
increase in the future. Moreover, this trend will also have an impact on energy security. Consequently, the
development of renewable energy has been seen as an important solution for securing Tunisia’s energy
future. That is why in recent years the country has made visible efforts to support the deployment of
renewable and energy efficiency projects. Those efforts are aligned with the ambition revealed on the
national strategy to get 30% of energy generate by renewable and 30% reduction of the primary
energy consumption by 2030.

Tunisia has already demonstrated its capacity to develop strategic energy efficiency projects with
appropriate support since the creation of the ANME in 1985, the country’s national energy conservation
agency. Moreover, renewable energy facilities have started to be drawn up by the energy actors STEG and
STEG-ER, main energy company in Tunisia. Current installed renewable energy capacity represents
245MWof wind and 68MWof Hydropower in 2016. However, the country has to maintain efforts to
reach its ambitious targets by 2030. Indeed, Tunisia’s renewable energy potential –particularly solar and
wind energy- is important in light of opportunities for economic growth and possible foreign investment.

The national energy producer and distributor, STEG, already has several projects planned out for wind
and solar in the near future. However, Tunisia is also hoping that foreign investors’ projects will play an
important role on renewable energy development for the country. In order to facilitate projects
development and attract foreign investment, the minister of energy is accelerating the elaboration of the
framework for renewable energy projects’ implementation. Moreover, an expansion of the grid could be
necessary for the integration of large-scale renewable energy projects.

Efforts were made on regulatory and policy frameworks to support renewable energy integration. In
2012, Tunisia’s Ministry of Energy, Mines and Renewable Energies, decided to create a specific law to
cover renewable energy project development. After three years of reflexion on its elaboration, the law was
submitted for approval on the15thof September2015. In August 2016, the Tunisian government approved
the decree of application of the Law N°2015-12. This announcement finalizes the legal framework for
the development of renewable energy projects eagerly awaited by foreign investors. The elaboration of
the feed-in-Tariff is the next important step, specially for the deployment of investors projects. This tariff
is currently the main grounds for thought for the ministry and central energy actors of Tunisia.

Tunisia’s ambition regarding the development of renewable energy and the attraction of foreign investors
to develop projects is strong and evident. Driven by the need to reduce their energy dependency and to
increase energy security, Tunisia’s energy stakeholders are making a continued effort to align their
projects to the national strategy in order to reach 30% of energy generate by renewable by 2030.
Tunisia - Country Profiles
RES4MED – Renewable Energy Solutions for the Mediterranean

       1 Macroeconomic & Global Energy Context
       1.1 Macroeconomic context

       Tunisia is a country of North Africa, sharing 965 kilometers of
       boundaries with Algeria to the west, 459 kilometers with Libya
       on the southeast and a border with the Mediterranean Sea on
       the north and the east. The Tunisian capital, Tunis, is located in
       the north-east of the country. The total area of the country is
       about 164,000 kilometers, with 50% of the land used for
       agriculture (8.7 millions of hectares). The Sahara desert
       represents more than 30% of the country, while the remaining
       lands are composed of mountains and plains with fertile soil. In
       2015, the population of Tunisia reached 11,107,800,
       following an annual growth rate of 1%. About 63% of the
       population lives in urban settlements. The proportion of men
       and women in Tunisia is stable and balanced, but the young
       generation (between 0-14years old) represents only 23% of the
       overall population.

       Table 1: Tunisia - Country Identity
       Source : WorldBank & IEA

Item                                 Data                                                              Date & Source
Capital                              Tunis
                                     Arabic (Tunisian Arabic/ Chelba (south)/French (large scale
Languages
                                     usage))
Area                                 164,000 km²                                                         2015
Agriculture Area                     50%                                                                 2015
Desert Area                          30%                                                                 2015
Population                           11,107,800                                                          2015
Population Growth rate per
                                     1%                                                                  2015
Year
Density                              65 hab/km²                                                          2014
IDH                                  0.721                                                               2014
       Reaching 43.045 Billion USD in 2015, the GDP of Tunisia has fallen compared to the previous year
       (47.603 Billion USD in 2014). The economy of Tunisia has always been diversified, driven by agriculture
       (olives, dates...), mines and energy resources (phosphate and hydrocarbon), tourism and manufacturing
       industry (clothes and food). Finally, internal consumption remains the primary driver of the Tunisian
       economy.
       However, since 2012, the GDP growth rate of Tunisia has
       been falling, reaching 0,8% in 2015. This negative
                                                                             Figure 1: Tunisian GDP Growth & Prospectives
       tendency is mainly due to the decrease of hydrocarbon
       production at the beginning of 2015, coupled with the                  Source: Adapted from the WorldBankGroup
       cessation of phosphate extraction, following social
       conflicts and political instability in the country. During the
       same periods, there was no compensation made by a
       growth of activities in agriculture, services and
       manufacturing industry. Moreover, the touristic sector
       representing 7% of the GDP has also decreased
       significantly, achieving 35% fewer revenues if compared to
       2014. Furthermore, while inflation reached 9% in the
       early 1980s, it decreased to 3,6% in 2015, and the rate of

                                                                                                                2
Tunisia - Country Profiles
+,-./,'!0!+&1&2#34&!,1&%56!-)4$(7)18!9)%!(:&!/&;7(&%%#1&#1!

N*%ST$'RS%*+'5*'H3*565,'64,16'8508'/)5*564/,452*6' ,=452*6B' ' C*9))9?' 48)' =23*4/1M6' ,=45@545)6' ,/)' >,5*.1'
=2*=)*4/,4)9' 5*' 48)' =2,64,.' /)052*6?' 4836' =/),45*0' ,' 0,)953>'=545)6'5*'48)'=23*4/1659)B'

!"#$%&=a&!N*L,L"&G&5O'*'SLO&c%R&7*ULO"+'J,&
-)$%*&!M!Z)%4;[#1S!\!R,Y!

7+%S&&                                   I"+"&&=P2B&                                                          I"+%&8&/'NJO%&
9I>&                                     $[?]W^'n'&                                                                 X]W^''
9I>&MJ'W+X&J"+%&                         ]?Zk'                                                                      X]W^''
9I>&T%J&O"TL+"&                          [?Z`XB^'n'                                                                 X]W^''
9I>&T%J&O"TL+"&MJ'W+X&J"+%&              ;]BXk'                                                                     X]W^''
967&T"J&)"TL+"&                          [?\`]'n'                                                                   X]W^'
7*($"+L'*&                               [BYk'                                                                      X]W^''
I%(LOL+&                                 $BXk'27'48)'D&K'                                                           X]W^''
A*%ST$'RS%*+&0"+%&                       W^k'                                                                       X]W^''
'
#2=5,.',*9'2/)'48,*'
X]W]:B' I'S%,+LO& 'L$& TJ'UNO+L'*& X",& ("$$%*' 2@)/'
                                                                 DLMNJ%&=a&!N*L,L"b,&)'$$"T,L*M&4L$&>J'UNO+L'*&
48)' .,64' 1),/B' C*9))9?' 48)' *,452*' 264' 27' 546'
/)75*)9' 73).6B' H8)' *,452*,.' )9' .2=,..1' ,==23*45*0' 72/'
$`k'27'9)>,*9B'H8)'/)64'56'=2>5*0'7/2>'I.0)/5,B''
Q5*,..1?' 48)' %*%JMR& O'*,NST+L'*' 56' 72..2+5*0' 48)'
25/f9I>&                                              ]BX$'42)iW]]]n'('X]]^:'                                   X]W['
)4=&5SL,,L'*,&                                         X[BY^'%4'27'G2X''                                         X]W['
'
'
'
'

                                                                                                                     ['
                                                                                                                       '
Tunisia - Country Profiles
+,-./,'!0!+&1&2#34&!,1&%56!-)4$(7)18!9)%!(:&!/&;7(&%%#1&#1!

  >?A B1#";1&(/274C&5;7.2%&&
  '
       K/52/' 42' ,99/)66' 48)' ,/A)4'5*'H3*565,B'H8)')N,*9'
  0/2+48B'H8)')*)/01'9)
RES4MED – Renewable Energy Solutions for the Mediterranean

In Figure 5, the decrease of oil production is
clearly visible. Natural gas generation
increased around 1995 in order to
compensate the oil decrease, but since this
time the production has remained mainly
stable, while the demand has been stedily
increasing. Since 2010, the global energy
productions has started to decrease,
worsening the gap between production and
demand.

Figure 5 Global Energy Production in Tunisia
                                Source : IEA

2 Power overview in Tunisia

In 2013, Tunisia started its energy transition process focusing
on energy efficiency and renewable energies. The goal of                  Hydro      Wind   Solar       Oil
Tunisia is to reduce the primary energy demand of 30% by                  0,3%        4%    0,1%        2%
2030 and to develop renewable integration to up to 30% by
2030. Moreover, on September 16th, 2015 at the COP 21
Tunisia has exposed its objectives regarding CO2 emission for
2030. The country aims to decrease the carbon intensity by
41% compared to 2010. In this context, the Juridical
institutions of Tunisia have created on May 11th, 2015 the
law n°2015-12 to support renewable development and
energy transition.
                                                                                 Natural
                                                                                  Gas
However, the current power system poses some challenges
for Tunisia. In one hand, the dependence on conventional                          94%
power and the difficulties in balancing the system (see
Figure 3 ); in the other hand, the fluctuations in global
energy prices impacting the investment possibilities.             Figure 6: Power production Mix 2014 (19 TWh)
                                                                           Source: ENEL Green Power

The power market of Tunisia is managed mainly by the STEG is currently driven by a power
generation composed at 94% from Natural Gas sources. However, the expansion of renewable energy
generation clearly displays the ambition of Tunisia effectively implement an energy transition.

                             Table 4: Power market Overview Tunisia - Key Data
  Tunisian Power Market - Overview
  Item                                                                Data (2014)
  Electricity Demand                                                  18.35 TWh
  Electricity Demand pro-capita                                       1.7 MWh
  Electricity demand growth rate 2014-2020                            3.8 % (p.a.)
  Total Power Generation                                              19 TWh
  Total Installed Capacity                                            4.8 GW
  Electrification rate                                                99,6%

Source: Enerdata, IMF Apr 2016, REN21, Enel Estimates, Agence Nationale pour la Maîtrise de l’Energie

                                                                                                              5
RES4MED – Renewable Energy Solutions for the Mediterranean

2.1 Legislative and regulatory framework

The legislative and regulatory framework on energy in Tunisia governs the entire sector, providing an all-
encompassing set of rules. The increasing interest of the country to develop renewable energy it is clearly
displayed through the careful elaboration of laws and decrees. Indeed, in 2009 the renewable legal
framework starts with the introduction of the concept in law N°2009-7 text. Then the ministry developed
the Grid Code in 2011 to specify the condition of connection from Renewable to the National Grid. To
cover all the aspects of renewable in 2015, the Law for renewable N°2015-12 is submitted. At the
moment, the Tunisian's legal framework know a turning point, with the approbation of the application
decree of the Law N°2015-12 in August 2016, finalizing the legal framework of Tunisia regarding
Renewable Energy to support and promote renewable energy projects. This chapter will present the
central decrees and laws regarding energy, to achieve a complete understanding of the legislative context
in Tunisia. A focus on the renewable energy legal framework will be the subject of a separate chapter
(Section 3.3.2, p 26).
Firstly, regarding Energy production and Independent Power Production (IPP), state monopoly status
on power generation has been eliminated by the Law N°96-27 opening the generation market to IPP on
April 1st ,1996. This provision provides the right of independent entities to produce energy with the
condition to sell it only to STEG. However, STEG maintains the monopoly on transmission and
distribution. Within this framework, the implementation of the first private power plant was done in 2002
by BOO mode (Build Own and Operate).
The regulatory framework of Tunisia supports cogeneration technology development. Indeed, the ANME
has developed measures to support those projects, such as the possibility to enter into bank loans with
favorable conditions.
However, several requirements are needed to qualify for these programs, slowing down cogeneration
projects. For example, promoters will need to achieve 60% efficiency of their installation in one year.
Moreover, the sale of the excess electricity to the STEG is limited to 2/3 of the production for projects with
a capacity inferior to 3MW and half of the production for the rest. Then, the promoter will have to pay the
costs of connection to the grid. Finally, the selling price of electricity is indexed to the purchase price of
natural gas (for companies) and set according to the four-time shift (daytime, peak hours, evening &
night).
Some laws are dedicated primarily to energy self-production installations (cogeneration or renewable),
determining the condition of production and sale of electricity surplus. According to the law, the owner of
renewable or cogeneration facilities providing energy for own consumption can sell his excess production,
but such amount cannot be more than 30% of the annual production. For biomass installation with a
capacity inferior to 15MW, an extension of this production could be possible. Moreover, self-producers
have to pay a connection fee and the technical advisory committee, while the ministry of energy must
approve the installation.
The Law N°2004-72 published in 2004 is the basis for the energy efficiency project development,
allowing the creation of a new law and support for energy conservation actions.
Law N°2005-106 introduced the National Fund for Energy Conservation (FNME, currently named Fund
for the Energy Transition - FTE) in 2005. This law aims to finance energy efficiency, renewable energy,
and energy substitution projects. The FNME supports such sectors with financial aid in various forms,
such as direct fund interventions, resources achieved by the realization of an energy management system,
donations, and grants. In 2010, the FNME financed up to 21 million dinars.
Finally, in a particular situation Law requires the establishment of permits for the realization of energy
projects.
    •   Environmental permit: To conduct an environmental study before the set up of a power
        generation project is a standard practice. However, it is mandatory by decree for electricity
        generation facilities with a capacity of more than 300MW. The ANPE, based in the Ministry of
        Environment, has the mandate to deliver the execution of this study by consultants and experts.
    •   Connection to the Grid permit: The decree N°64-9 exposes conditions to connect power
        generation plants and supply electricity to the grid, making the subscriber responsible for the
        connection fee. The permission to connect new installations to the network and the cost will be
        determined by the STEG, after an analysis of technical specifications.
    •   Land Permit: For project based on the set up for a power generation installation on a land in the
        public domain, the producer must negotiate a concession agreement, with a precise definition of

                                                                                                            6
RES4MED – Renewable Energy Solutions for the Mediterranean

                  the property of the equipment installed after the expiration of the grant period. (By rule of
                  concession of Law N°2008-23).
          Diverse ministries must take part in the land permit release procedure and have to provide their
          authorization for project development:
              -   The Ministry of Transport has to deliver an approval for the set up of a new installation which
                  could be an obstacle to aeronautical traffic.
              -   The Ministry 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 technical
                  advisory committee of local farmland.
              -   Even if the terms and conditions of the agreement are not precisely defined, it is always
                  preferable to make a request to the Ministry of National Defence before to set up new
                  generation equipment.

                  Table 5: Law classification by Topics
                  Source : adapted from GIZ report on Tunisia
Topic                        Law Text                Date              Content
                                                                       Allow some independent producers to generate electricity for their
                             Law N° 62-08            1962
                                                                       consumption and sell the surplus to STEG.
Law on Energy production                                               Authorizes the state to grant independent producers "IPP"
& Independent Production     Law N°96-27             01/04/1996        concessions of power generation for exclusive sale to STEG by a
(IPP)                                                                  PPA.
                                                                       A new law is giving the legal framework for the development of
                             Law N°2015-12           11/05/2015
                                                                       Renewable energy project. (Section 3.3.2, p 26)
                             Decree N°2002-3232      03/01/2002        Decree of application
                                                                       Approving the specifications on the technical terms for connection and
                             Bylaw of Ministry of
                                                     24/12/2007        discharge of electrical energy from cogeneration power plants to the
                             Industry & Technology
                                                                       national grid.
                                                                       Introducing essentials elements for promoting the cogeneration, in
                             Law N° 2004-72          02/08/2004
Law on Cogeneration                                                    particular for production, transmission and sales of electricity.
                                                                       Fix transmission and sale tariffs of electricity surplus deliver to STEG
                                                                       by technical conditions for connection to the national power grid and
                             Bylaw                   18/06/2009        tariffs of the sale of surplus production to STEG.
                                                                       Fix the rates of transport and sale of excess electricity STEG and the
                                                                       technical conditions for connection to the grid.
                                                                       Introducing essential elements for promoting renewable energies, in
                             Law N°2009-7            09/02/2009
                                                                       particular for the production, transmission, and sale of electricity.
                                                                       Introduction investment aids for the realization of electricity
                             Decree N°2009-362       09/02/2009
                                                                       production projects from renewable energy sources.
                                                                       Fix conditions of power transmission, the sale of surpluses to STEG and
Law      for   electricity   Decree N°2009-2773      28/09/2009        the upper limits of these surpluses. A decision of the Minister in charge
production          from                                               of Energy set the Prices.
Renewable Energies                                                     Technical specifications for the connection of cogeneration and
                             Grid Code               12/05/2011
                                                                       renewable electricity production to the grid.
                                                                       A new law is giving the legal framework for the development of
                             Law N°2015-12           11/05/2015
                                                                       Renewable energy project. (Section 3.3.2, p 26)
                             Decree 2016             August 2016       Application Decree of the Law N°2015 (Section 3.3.2, p 26)
                                                                       Give right to self-producer to transport the electricity produced by
                                                                       cogeneration or renewable installation (for own consumption), up to
                             Law N°2004-72           02/08/2004
                                                                       the point of use, and the right to sell the excess to STEG, in a limit set by
Law on Self-Production                                                 a decree.
                                                                       Fixing Transmission & sale condition from energy surplus produce for
                             Decree 2009-2773        28/09/2009
                                                                       Self-production and own consumption.
                                                                       Allowing the publication of new legislation and regulation to support
                             Law N°2004-72           02/08/2004
                                                                       energy conservation actions.
                                                                       Created National Fund for Energy Conservation (FNME), financial
                             Law N°2005-82           15/08/2005
                                                                       assistance for the energy conversion field.
Law     establishing the                                               Fix the rate and amounts of premiums of actions regarding the FNME
National Fund for Energy     Decree N°2005-2234      22/08/2005
                                                                       and modalities to grant them.
Conservation                                                           Article 12 and 13, set the national fund for energy conservation,
                                                                       intending to finance energy efficiency operations, promote renewable
                             Law N°2005-106          19/12/2005
                                                                       energy and energy substitution. This fund will provide subsidies for
                                                                       transactions targeted in the article I of the Law N°2005-82.
                             Law N°2005-82           15/08/2005        Establish an energy management system.
                                                                       Environmental Permit: Electricity generation facilities of more than
                             Decree N°2005-1991      11/07/2005
                                                                       300MW requires environmental impact studies.
                                                                       Grid license: Connections fees to the national grid are the responsibility
Approvals & Permits          Decree N° 64-9          17/01/1964
                                                                       of the subscriber.                                     7
                                                                       Land Permits: Determine rules for a concession contract to set up a
                             Law N° 2008-23          01/04/2008
                                                                       project on a land in public domain.
RES4MED – Renewable Energy Solutions for the Mediterranean

        2.2 Electricity key stakeholders
        Few entities manage energy deployment in Tunisia, thus shaping a simple and coherent market structure,
        but limiting the liberties of IPPs.
        The three main stakeholders are the Tunisian Ministry of Industry, Energy and Mines, the Tunisian
        company of Electricity and Gas (STEG), and the National Agency for Energy Conservation (ANME).
        Table 6: Main Energy Tunisian Actors
Institution           Role
                            The Ministry of Energy, Mines and Renewable Energies of Tunisia have to elaborate governmental policies in the
                            different area under its control. Regarding, the energy sector its main missions are:
                           −     To promote the research and the exploitation of energy resources,
Ministry of Energy,        −     To assure the energy security of the country,
Mines and                  −     To develop and implement policies and juridical texts regarding energy efficiency and energy transition through
                                 renewable,
Renewable                  −     To negotiate with companies and to attribute permit of research,
Energies                   −      To elaborate energy projects, and manage the exploitation of resources,
                           −     To assure optimization of the hydrocarbon production, and optimize market conditions,
                           −     To promote the usage of a clean source of energy,

                      The STEG founded in 1962, by the Law N°62-8 aiming to harmonize the energy sector in Tunisia, gave to the STEG the
                      responsibility of the management of the production, transportation and the distribution of electricity and gas in Tunisia.
                      The primary objectives of the STEG are:
                           −     The electrification of the country
STEG
                           −     The development of the Natural Gas network,
Société Tunisienne         −     The development of installation for electricity and gas.
                      To realize those objectives several tasks is under its responsibility:
d'Electricité et de        −     The management of the electricity from diverse sources such as thermic, hydraulic, windmills,
Gaz                        −     The transport of electricity with the administration and development of High-tension grid and lines,
                           −     The distribution of power with the administration and development of medium and low tension grid and lines,
                           −     The development and distribution of natural gas,
                                 The production of LPG (Liquid Petrol Gas).

                      STEG-ER is the renewable part of the STEG.
                      The main activities of the STEG-ER are to study, realize, operate and assure the maintenance of renewable and cogeneration
STEG-ER               installations.
                      Working in the three following sectors:
Renewable Energy            −     Wind
                            −     Solar
                            −     Cogeneration
                      The primary mission of the STEG-ER are:
                            −     Promotion of the Tunisian Solar Plan (see section 3.4).
                            −     Projects development: Feasibility study, resource study.
                            −     Projects realization: ownership, supervision.
                            −     Exploitation and Maintenance.
                      L'ANME created in 1985; it is an entity under the administration supervision of the Ministry of Energy. Its primary missions
                      are to apply Tunisian policies regarding energy management by studying and promoting energy efficiency, renewable and
                      energy transition. The ANME is composed of two section one focus on Renewable projects and the other one on Energy
                      Efficiency. The branch working on energy efficiency is divided into three sectors: Industrial, Building, and Transport.
                      To improve the energy efficiency and to diversify energy resources, the role of the ANME is:
                            −     to elaborate and implement national programs regarding energy management,
                            −     to realize strategic studies on emission reduction,
                            −     to manage the FNME,
ANME                        −     to propose a regulatory and legislative framework,
                            −     to develop awareness actions,
Agence Nationale            −     To encourage financing and investment on renewable energy and energy efficiency.
pour la Maîtrise de   Focusing, on energy policies the main tasks of the ANME are:
l'Energie                   −     to develop national resources of Hydrocarbon,
                            −     to ensure the energy security at low costs, to promote of renewable,
                            −     To support the energy transition and to promote domestic and international energy cooperation.
                       Focusing, on energy conservation the main tasks of the ANME have:
                             −     to manage Energy efficiency with the rationalization of the power consumption,
                             −     to manage energy audit and consultations on power consumption and ESCO's,
                             −     to develop the information for household appliances energy consumption and make thermal regulations on
                                   buildings,
                             −     To control in a rational way the usage of public lighting, to make diagnostic of car's motors, and to develop urban
                                   transport plan in the main cities.

                                                                                                                                         8
RES4MED – Renewable Energy Solutions for the Mediterranean

        2.3 Power Market Structure

        STEG, under the supervision of the Ministry of Industry, is the leading actor in the Tunisian electricity
        market, performing production, transmission and distribution of energy. Such framework has simplified
        the energy market, that is currently composed of few key stakeholders. In any case, it is relevant to point
        out how STEG's monopoly status in electricity generation ended with the opening of the market to IPPs in
        1996.

        Figure 7 shows an overview of the Electricity market structure of Tunisia:
            −      STEG holds the monopoly of transmission, distribution, and sale of electricity. Moreover, the
                   company performs most of the power generation, accounting for 79% of the total production, in
                   2015. At the same time, STEG-ER manages part of the renewable and alternative energy
                   production.
            −      Currently, IPPs represent 17% of the total electricity generation (see Figure 7). However, their
                   contribution is limited to production for either self-consumption or in order to sell energy to
                   STEG.

                                Figure 7: Tunisian Electricity Market Overview
                                  Source: Adapted from ENEL Green Power [29]

GENERATORS                  SINGLE BUYER              TRANSMISSION               DISTRIBUTION                 CLIENTS

     STEG
  86% of total
   production

                                                           STEG                       STEG                   Consumers
                                                                                                             (Households,
   STEG-ER
                                                                                                              Industries)

  IPP & self               PPA negociated
  producers                tariffs (tender)
14% of the total
  production

                                                                                                                 9
RES4MED – Renewable Energy Solutions for the Mediterranean

                                                                      2.4     Power Demand

                                               Industry               The global energy consumption of Tunisia is equal to
                                                                      0,9 TOE. Oil consumption still accounts for the vast
                    4%                                                majority of the total energy consumed in the Country,
               4%                              Pumping &
              5%                                                      followed by electricity, gas, and biomass.
                                               sanitary sta8on
                                               Services               In relation to the power demand, consumption by the
        12%                                                           inhabitants was set around 1315 kWh in 2010 and has
                                                                      been characterized by an increase of around 4% every
                                               Agriculture
        7%                                                            year. The main amount of energy consumption stems from
                                                                      the usage of lighting and electrical devices (80%).
                              68%              Transport

                                               Tourism                The breakdown of energy consumption in Tunisia by
                                                                      sectors is summarized below:
                                                                          − The transport sector accounts for more than
 Figure 8: Consumption repartition by Sector Mars 2015 (HT&MT)        30% of the total energy consumption. The primary energy
Source: ONE 2015                                                      source in such sector is Oil.
                                                                          − Energy consumption increase in the industrial
                                                                      sector of Tunisia is the fastest among Mediterranean
                                                                      countries with 35% of total energy consumed. In this
        20000                                                         sector, oil remains the most used source of energy.
                                                                          − The service sector accounts for only 4,5% of the
                                                                      energy consumed, mainly used in connection with
  GWh

                                                                      tourism.
                                                                          − The use of energy from the agricultural sector
                                                                      accounts for only 7% of the total energy consumption.
                                                                      However, agriculture accounts for a significant share of
           0                                                          the country economy, with an overall amount of farmable
    Agriculture/ forestry
                2000
                2001
                2002
                2003
                2004
                2005
                2006
                2007
                2008
                2009
                2010
                2011
                2012
                2013

                                                                      land equal to 5000m² per inhabitant.
    Commercial & Public services
    Residen8al
    Transport                                                         As it is shown in Figure 10, the energy balance of Tunisia
    Industry                                                          has to face two problems regarding consumption. On one
                                                                      hand, the population of Tunisia is still increasing,
                                                                      reaching 11 millions of inhabitants in 2014, even if the
Figure 9: Electricity Consumption evolution & repartition by sector
                                                                      population growth rate has steadily been reducing down
Source: IEA Database                                                  to 1 percent per year during the past decade. On the other
                                                                      hand, the overall trend of energy consumption per
                                                                      inhabitant in Tunisia, although carefully managed by the
                                                                      ANME by means of various energy efficiency projects, is
                                                                      also increasing, achieving 1,430 KWh/capita in 2013.

                                                                      The increase of electricity consumption could be related to
                                                                      the steady development of electrification in the country. In
                                                                      fact, in 2012 Tunisia achieved 99,8% of electrification
                                                                      rate (100% in urban areas and 97% in the countryside)
                                                                      compared to 95% in 2000. However, this is not the only
                                                                      factor influencing electricity consumption, as the
                                                                      multiplication of electrical appliances in the
                                                                      households and cities could also represent a key factor.
                                                                      That is why Tunisian's energy actors are focusing not only
                                                                      on the implementation of new renewable energy projects,
 Figure 10: Tunisian population evolution & Energy consumption        but also on energy efficiency and conservation.
 per capita
 Source: Data bank mondial

                                                                                                                               10
RES4MED – Renewable Energy Solutions for the Mediterranean

         2.5 Power Supply

              4%
        17%                                                                                                                 Wind
                                                                 507
                                             STEG               56                                                          Hydrolic
                   79%              Electricity Produc8on                                               13235
                                                                                                                            Natural gas
                                                                319
                                                                                                                            Fuel + Gasoil

 STEG       IPP    Autoproducer                             0        2000   4000   6000   8000 10000 12000 14000

Figure 11: Electricity Production 2015 per producer in GWh                  Figure 12: Repartition of STEG Electricity Production GWh

Source: ONE Web Data                                                                                                Source: ONE 2014

         In 2015, the electricity production of Tunisia reached 18 256 GWh, with an installed capacity of 5224
         MW.
         As shown in Figure 11, STEG generates the most of the electricity in the country, accounting for up to 79
         % of the production in 2015. The main source used by STEG to produce electricity remains natural gas,
         which accounts for 13 235GWh per year. However, even if natural gas represents the main input for
         the production of energy, the share generated by renewable sources is increasing. According to the
         monthly report by ONE, in May 2015, the production of electricity generated by hydraulic sources has had
         an increase of 42% compared to the same period in 2013, while electricity generated from Wind has
         grown by 127% in the same period of time. The usage of natural Gas to produce electricity has known a
         negative variation of 8% if compared to that period. Those data clearly show the effort of Tunisia to
         implement an effective energy transition from fossil fuel to renewable energy generation.
         The share of energy generated by IPPs in May 2015 accounts for 17% of the total with 3314 GWh
         produced. In Figure 13, we can appreciate how, since the opening of the market in 1996, the electricity
         production made by IPP has had an increase in 2002 with the installation of the power plant Rhades II and
         Zarzis, that mainly use natural gas as input. After this period, the IPP power production has remained
         stable, oscillating around 3200 GWh in absence of any new IPP installation.

                                   Electricity Produc7on by Producer
   20000
   18000
   16000
   14000
   12000                                                                                                 Autoproducteurs (GWh)
   10000
                                                                                                         STEG (GWh)
     8000
                                                                                                         IPP(GWh)
     6000
     4000
     2000
         0
          1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
        Figure 13: Evolution of the Electricity Production by Producer
        Source: ONE WebData

                                                                                                                       11
RES4MED – Renewable Energy Solutions for the Mediterranean

As previously mentioned, Figure 14 showing the evolution of electricity production's sources in Tunisia,
confirms the supremacy of natural gas, that accounts for 94% of the total Tunisian power production.
Natural gas is used as base load to answer to the increasing demand for electricity. Tunisia is covering
approximately 53% of its gas demand by means of a usage fee paid in kind on the gas pipeline coming
from Algeria to Italy. The country tries to cover the rest of the demand with its gas resources. However,
the steady decrease of the resource, as illustrated in paragraph 1.2 above, has lead to an increased
dependency to Algerian’s gas.
In regards to the other fossil fuels used to produce electricity, since 2010 the usage of oil is almost
non-existent: currently oil is mainly used as power source in order to balance the demand when it is
needed. While it accounted for 1461GWh in 2007, its consumption decreased to achieve only 67GWh in
2013.

From a different perspective, this graph illustrates an increase of the renewable usage as an electricity
source. Indeed, the trend in the use of renewables for power production follows the opposite direction if
compared to oil usage. In its 2015 May monthly report, ONE has clarified that electricity production
coming from renewable sources has been subject to an increase of 19% between 2014 and 2015. This
increase is mainly due to the launch of the second part of the project "Metline el kchabta", consisting in the
development of a wind farm in Bizerth. Following this evolution, the proportion of renewable energy used
as a source for electricity production accounts for 4,2% in 2015, growing from 3,7% in 2014.
The installed power capacity of hydraulic energy is not evolving; only the production could know
variations depending on the years, mainly due to climatic factors. Following the development of the
hydropower sector, the main expansion of renewable sources has been due to the implementation of
several wind projects. Wind power is now leading electricity production from renewable sources
reaching up to 358 GWh in 2013, against 23Gwh in 2000. Solar PV generation has been characterized by a
slow start since 2010, with a an increase in production from 1 GWh in 2010 to 11 GWh in 2013. It is
relevant to point out how such increase has been achieved mostly by means of solar home systems and
not due to the development of large scale projects. The other sources are mainly composed of Thermal
(stem) power plants and combined-cycle gas turbines.

                                   Electricity Produc7on
         20000
         18000
         16000
         14000                                                                              Other sources

         12000                                                                              Wind
   GWh

         10000                                                                              Solar PV
         8000                                                                               Hydro
         6000
                                                                                            Gas
         4000
                                                                                            Oil
         2000
            0

Figure 14: Electricity production per sources
Sources: IEA DATA web

                                                                                                            12
RES4MED – Renewable Energy Solutions for the Mediterranean

     2.6 Grid & Infrastructure

    Tunisia is an energy-dependent country with
    modest oil and gas reserves. The global installed
    Power Capacity of Tunisia reached 4827 MW in
    2014 and represent 5224MW in August 2016.

    Up to 94% of the total installed capacity of the
    country is generated by means of natural gas power
    fired via thermal station.

    The remaining 4,4% stems from renewable
    installations with: 68 MW of Hydropower, 245MW of
    Wind, and around 15MW of residential Solar PV
    system, installed.

    The total installed capacity is expected to increase to
    7 500 MW by 2021. The reason of the Power
    capacity rise lies mostly in the need to balance the
    increase of power demand in the industrial and
    residential sectors.

    This future development of installed capacity in
    Tunisia will be less based on natural gas, and more
    on the energy transition process. Indeed, even if
    some additional power plants could be built, the
    development of solar and wind will be significant to
    sustain the economic development and reduce the
    impact of the country on climate change.
                                                                         Figure 15: Installed Power Capacity 2014
                                                                              Sources : Energypédia , Ecomena

Table 7: Tunisian Power Installation (Except solar facilities)
Source : STEG

 TUNISIAN POWER INSTALLATIONS - 2014
 Owner              Kind        Name                              Dates                  Power Installed (MW)
                                BIR MICHERGUA                     1998/2013              476MW
                                TUNIS SUD                         1975/1978              66MW
                                MENZEL BOURGUBA                   1978                   44MW
                                KORBA                             1978/1984              56MW
                                SFAX                              1977                   44MW
                                KASSERINE NORD                    1984                   68MW
                      Gas
      STEG                      GHANOUCH                          1973                   44MW
                    Turbine
                                BOUCHEMMA                         1977/1999              178MW
                                THYNA                             2004/2007              358MW
                                FERIANA                           2005/2009              240MW
                                GOLLETTE                          2005                   120MW
                                ROBBANA                           1984                   34MW
                                ZARZIS                            1983/1999              34MW

                                                                                                          13
RES4MED – Renewable Energy Solutions for the Mediterranean

TUNISIAN POWER INSTALLATIONS - 2014
Owner           Kind                Name                                  Dates                  Power Installed (MW)
                                    RADES                                 1985/1998              710 MW
                                    SOUSSE                                1980/ 1994/1995        684MW
                    Thermal
                                    GHAN-NOUCH                            2011                   425MW
                                    SOUSSE C                              2014                   425MW
                                    SIDI SALEM                            1983                   36MW
                                    FERNANA                               1958/1962              9,7MW
  STEG &                            NEBER                                 1956                   13MW
                   Hydraulic
  STEG-ER                           AROUSSA                               1956                   4,8MW
                     Station
                                    KASSEB                                1969                   0,66MW
                                    SEJNANA                               2003                   0,62MW
                                    BOUHERTMA                             2003                   1,2MW
                                    SIDI DAOUD                            2000/2007              54MW
                   Wind Farm        KACHBTA                               2012                   94MW
                                    METLINE                               2012                   95MW
                                    RADES II                              2002                   471MW
    IPP           Gas Turbine
                                    ZARZIS                                2003                   27MW

  Transmission current Situation:

  Gas and oil represent the main factors for the balancing
  between supply and demand in Tunisia. The further
  development of the electricity grid will allow more
  flexibility regarding renewable energy integration and could
  represent a positive factor to support their development.
  Between 2012 and 2020, the African Program of
  Infrastructure Development (PIDA) implemented fifteen
  projects 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 energy
  exchanges by means of nine hydroelectric plants, four
  transmission corridors, a gas pipeline and an oil pipeline. One
  of the transmission corridors will be constructed in North
  Africa, connecting Egypt to Morocco, while passing through
  Tunisia. Such new connections will help the development of
  renewable technologies in the whole MENA region. Indeed,
  those transmission lines are multiplying the access to several
  resources of energy, and reducing the problem of balancing
  supply and demand.
  The grid connections are more developed in the north and
  on the coast of Tunisia, due to the higher density of the
  population in this area. The main line of 225KV, connects the
  north to the south of Tunisia. Five lines are currently
  operational between Tunisia and Algeria, composed
  respectively of two lines of 90kV, and one line of 150, 250 and
  400kV each. Those lines have a limited capacity of 1000MW.
                                                                               99,8% Electrification rate
  Two lines of 225kV are connected to Lybia, but they are used                  Figure 16: Tunisian Electricity Grid
  with precaution because of the instability of the electricity                            Source: STEG
  infrastructure of Libya. Sudden changes in electricity flow
  could negatively affect the reliability fo the Tunisian grid. The overall electrification rate of the country
  has reached 99,8%, with 97% in rural and 100% in urban areas. The most isolated part of the Country is
  provided with electricity by means of photovoltaic systems.
                                                                                                              14
You can also read