Difference between revisions of "Tunisia Energy Situation"

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= Overview<br>  =
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{{CES Country|CES Country Name=Tunisia
 +
|CES Country Capital=Tunis
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|CES Country Region Middle East and North Africa = Middle East & North Africa
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|CES Country Coordinates=34.0000° N, 9.0000° E
 +
}}
  
{| width="400" cellspacing="0" cellpadding="0" border="1" style="float: right"
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= Introduction =
 +
 
 +
Tunisia is a small country located in Northern Africa sharing borders with Algeria and Libya. The country entails the Northern reaches of the Sahara desert and the Eastern end of the Atlas Mountains and has a Mediterranean coast. Therefore, the country has a bright diversity on climate and biosphere.
 +
 
 +
[[Tunisia Energy Situation#toc|►Go to Top]]
 +
 
 +
= Energy Situation<br/> =
 +
 
 +
Since 1990, the Tunisian primary energy consumption has increased in a roughly linear way, with approximately 4,500 ktoe in 1990, 6,700 ktoe in 2000 and 8,300 ktoe in 2010 (without biomass). As shown in Figure 1, the sharpest increase is to be noticed in the gas sector, which represented 55&nbsp;% of the primary energy supply in 2012. As a result, the share of oil, including crude oil and petroleum products, has slightly decreased. The share of coal and peat has always been minimal and now reached zero. &nbsp;The amount of biofuel and waste slightly increased (58 PJ in 2011), and currently represents 15&nbsp;% of the primary energy supply. In 2014, primary energy consumption was about 9,200 ktoe<ref name="Bureau des statistiques, Ministère de l’Industrie.">Bureau des statistiques, Ministère de l’Industrie.</ref> (i.e. 107,000 GWh or 385 PJ), without biomass.
 +
 
 +
Figure 1: Primary Energy Consumption since 1990<ref name="ANME Maîtrise de l'Energie en Tunisie - Chiffres Clés, p19.">ANME Maîtrise de l'Energie en Tunisie - Chiffres Clés, p19.</ref><br/>
 +
 
 +
[[File:Primary En Consumption TUN.png|border|left|x412px|Primary En Consumption TUN.png|alt=Primary En Consumption TUN.png]]
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<div style="clear: both">
 +
[[Tunisia Energy Situation#toc|►Go to Top]]
 +
</div>
 +
== Energy Data<br/> ==
 +
 
 +
=== Primary Energy Consumption<br/> ===
 +
<div>
 +
{| cellspacing="1" cellpadding="0" border="1" style="width: 100%; width:100.0%"
 
|-
 
|-
| align="center" colspan="4" | '''Tunisian Republic'''
+
| style="width:318px" |
 +
Total Primary Energy Consumption in 2014<ref name="Bureau des statistiques, Ministère de l‘Industrie.">Bureau des statistiques, Ministère de l‘Industrie.</ref>* (without biomass, PV, SWH, process heat, self-consumption of oil fields, consumption of natural gas pipeline compressor stations)<br/>
 +
 
 +
| style="width:67px" |
 +
&nbsp;
 +
 
 +
| style="width:87px" |
 +
&nbsp;
 +
 
 +
| style="width:65px" |
 +
&nbsp;
 +
 
 +
| style="width:68px" |  
 +
&nbsp;
 +
 
 
|-
 
|-
| &nbsp; [[Image:Flag of Tunisia.png|border|center|150x100px|Flag of Tunisia.png]]<br>
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| style="width:318px" |  
| &nbsp; [[Image:Location Tunesia.png|center|100x100px|Location Tunisia.png]]<br>
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'''Energy Source'''
 +
 
 +
| style="width:67px" |  
 +
'''in ktoe'''
 +
 
 +
| style="width:87px" |  
 +
'''in GWh'''
 +
 
 +
| style="width:65px" |  
 +
'''in PJ'''
 +
 
 +
| style="width:68px" |  
 +
'''in&nbsp;%'''
 +
 
 
|-
 
|-
|  
+
| style="width:318px" |  
Capital<br>
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Crude Oil and Oil Products (2014)*
 +
 
 +
| style="width:67px" |
 +
4,232
 +
 
 +
| style="width:87px" |
 +
49,218
 +
 
 +
| style="width:65px" |
 +
177,185
 +
 
 +
| style="width:68px" |
 +
46%
 +
 
 +
|-
 +
| style="width:318px" |
 +
Natural Gas (2014)*
 +
 
 +
| style="width:67px" |
 +
4,876
 +
 
 +
| style="width:87px" |
 +
56,708
 +
 
 +
| style="width:65px" |
 +
204,148
  
|  
+
| style="width:68px" |
Tunis ([http://toolserver.org/~geohack/geohack.php?pagename=Tunisia&params=36_50_N_10_9_E_type:country 36°50′N 10°9′E])
+
53%
  
 
|-
 
|-
|  
+
| style="width:318px" |  
Official language(s)<br>
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Electricity from Renewables (2014)*
 +
 
 +
| style="width:67px" |
 +
92
 +
 
 +
| style="width:87px" |
 +
3,852
 +
 
 +
| style="width:65px" |
 +
1,070
  
|  
+
| style="width:68px" |  
Arabic<br>
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1%
  
 
|-
 
|-
|  
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| style="width:318px" |  
Government<br>
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'''SUBTOTAL (2014)*'''
 +
 
 +
| style="width:67px" |
 +
'''9,200'''
 +
 
 +
| style="width:87px" |
 +
'''106,996'''
 +
 
 +
| style="width:65px" |
 +
'''385,186'''
  
|  
+
| style="width:68px" |  
Presidential republic<br>
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'''100%'''
  
 
|-
 
|-
|  
+
| style="width:318px" |  
President<br>
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&nbsp;
 +
 
 +
| style="width:67px" |
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&nbsp;
 +
 
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| style="width:87px" |
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&nbsp;
 +
 
 +
| style="width:65px" |
 +
&nbsp;
  
|  
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| style="width:68px" |  
Fouad Mebazaa (since 14 January 2011)<br>
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&nbsp;
  
 
|-
 
|-
|  
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| style="width:318px" |  
Prime Minister<br>
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Biomass (2011)
 +
 
 +
| style="width:67px" |
 +
1,390
 +
 
 +
| style="width:87px" |
 +
&nbsp;
 +
 
 +
| style="width:65px" |
 +
58
  
|  
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| style="width:68px" |  
Béji Caïd Essebsi (since 21 February 2011)<br>
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&nbsp;
  
 
|-
 
|-
|  
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| style="width:318px" |  
Total area<br>  
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Geothermal, Solar etc. (2011)
 +
 
 +
| style="width:67px" |
 +
9
 +
 
 +
| style="width:87px" |
 +
&nbsp;
 +
 
 +
| style="width:65px" |
 +
0.38
 +
 
 +
| style="width:68px" |
 +
&nbsp;
 +
 
 +
|}
 +
 
 +
(*) Data not yet officially published
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</div>
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[[Tunisia Energy Situation#toc|►Go to Top]]
 +
 
 +
=== Energy balance, import and export ===
  
|  
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{| cellspacing="1" cellpadding="0" border="1" style="width: 100%; width:100.0%"
163,610 km<sup>2</sup><br>  
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|-
 +
| colspan="4" |
 +
'''Tunisia's energy production, consumption and import/export balance in 2012<ref name="http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=TUNISIA&product=Balances">http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=TUNISIA&product=Balances</ref>'''
  
 
|-
 
|-
 
|  
 
|  
Population<br>
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| style="width:142px" |
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Crude Oil &nbsp;(ktoe)
  
|  
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| style="width:121px" |  
10,432,500 (2009 estimate)  
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Natural Gas (ktoe)
  
 
|-
 
|-
 
|  
 
|  
GDP (nominal)<br>
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Total Production
 +
 
 +
| style="width:142px" |
 +
3,522
  
|  
+
| style="width:121px" |  
$40.168 billion<br>
+
2,563
  
 
|-
 
|-
 
|  
 
|  
GDP Per capita (nominal)<br>
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Imports
 +
 
 +
| style="width:142px" |
 +
1,139
  
|  
+
| style="width:121px" |  
$3,851<br>
+
2,480
  
 
|-
 
|-
 
|  
 
|  
Currency<br>
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Exports
  
|  
+
| style="width:142px" |  
Tunisian dinar (TND)<br>
+
&nbsp;-2,741
 +
 
 +
| style="width:121px" |
 +
-0
  
 
|-
 
|-
 
|  
 
|  
Time zone<br>
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Total consumption
  
|  
+
| style="width:142px" |  
CET (UTC+1)<br>
+
1,946
 +
 
 +
| style="width:121px" |
 +
5,043
  
 
|-
 
|-
 
|  
 
|  
Calling code<br>
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% of net imported resources in the total consumption
  
|  
+
| style="width:142px" |  
+216<br>
+
69
 +
 
 +
| style="width:121px" |
 +
49
  
 
|}
 
|}
 +
<div></div><div><br/></div><div>As shown in Figure 2, the Tunisian energy situation has drastically changed in the last two decades. Resulting from the economic development, primary energy demand has risen in a significantly steeper way than production. Consumption nearly doubled within 20 years between 1992 and 2012 from 4,500 ktoe to 8,500 ktoe. Between 1990 and 2000, consumption increased at a rate of 6.2%/year. Between 2000 and 2005, demand grew by 4.6%/year and between 2005 and 2009, annual demand growth slowed to 3.7%, mainly due to energy efficiency measures<ref name="http://www.iisd.org/gsi/sites/default/files/fossil-fuel-subsidies-renewable-energy-middle-east-north-african-countri%20%20%20.pdf ">http://www.iisd.org/gsi/sites/default/files/fossil-fuel-subsidies-renewable-energy-middle-east-north-african-countri%20%20%20.pdf </ref>. &nbsp;In 2014, primary energy consumption was 9,200 ktoe (without biomass), of which 46% was provided by oil products, 53% was provided by natural gas and 1% by renewable energies<ref name="Bureau des statistiques, Ministère de l‘Industrie.">Bureau des statistiques, Ministère de l‘Industrie.</ref>.</div>
 +
Oil production decreased between 1980 and 2012 from 120,000 to 67,000 barrels per day. Gas production, however, increased from 20 billion cubic feet in the early 1980s to 68 billion cubic feet in 2012. An overall increase in domestic primary energy production from 5,400 ktoe in 1900 to 7,000 ktoe in 2012 could not follow the sharp rise in demand.
 +
 +
Hence the unbalanced consumption illustrated in Figure 2. Tunisia, a net energy exporter until 2000, has become a net importer. In 2014, 49% of natural gas consumption (2,300 ktoe) was covered by domestic production. The remaining 51% (2,400 ktoe) was imported from Algeria<ref name="Ibid.">Ibid.</ref>.
 +
<div>
 +
Figure 2: From a Net-Exporter to a Net-Importer<ref name="ANME, Maîtrise de l'Energie en Tunisie - Chiffres Clés, p18.">ANME, Maîtrise de l'Energie en Tunisie - Chiffres Clés, p18.</ref><br/>
 +
<div id="ftn3">
 +
[[File:TUN Net Importer.png|border|left|500pxpx|TUN Net Importer.png|alt=TUN Net Importer.png]]<div style="clear: both">Becoming a net importer implies a rise in energy prices since the mid-2000s (natural gas is today 8 times more expensive than it was in 2000) and a weak national currency (Dinar, TND) (2010: 1.8 TND=1.0 €; 2012: 2.0 TND=1.0 €; 2015:2.2 TND=1.0 €) makes the imports more expensive. Thus, expenses for energy represented 13.7% of GDP in 2012 − with expenses on energy import representing 16.8% of the global imports<ref name="http://www.leaders.com.tn/article/11353-la-tunisie-sera-t-elle-capable-d-arreter-l-hemorragie-des-subventions">http://www.leaders.com.tn/article/11353-la-tunisie-sera-t-elle-capable-d-arreter-l-hemorragie-des-subventions</ref>.
 +
</div></div></div>
 +
[[Tunisia Energy Situation#toc|►Go to Top]]
 +
 +
=== Subsidies ===
 +
 +
The energy sector is heavily subsidised in Tunisia. Subsidies for natural gas as well as electricity started a sharp increase in the early 2000s. In 2012, energy subsidies amounted to 5,600 million TND (3,100 million EUR), i.e. 20% of public budget or 9% of GDP. Whereas energy subsidies only represented 3% of GDP in 2005. This rise in subsidies is not sustainable for the state and has several negative effects on public spending such as a decreasing budget for public investments<ref name="Présentation Déjeuner-Débat du 24 Mars 2014, Rafik Missaoui.">Présentation Déjeuner-Débat du 24 Mars 2014, Rafik Missaoui.</ref>. Subsidising procedures remain non-transparent. The subsidy system is composed of indirect and direct subsidies. Indirect subsidies are the difference between supply costs of crude oil and gas for the State, and the selling prices to the two public operators STIR for oil and STEG for natural gas. Direct subsidies are subsidies made ​​directly by the State to STIR and STEG in order to offset their deficits<ref name="Ibid.">Ibid.</ref>. &nbsp;
 +
 +
As for electricity, average retail prices (0.14 TND/kWh in 2012) are significantly lower than average production costs for the State (0.26 TND/kWh in 2012). The discrepancies between average production cost and average retail price are even larger for natural gas<ref name="Ibid.">Ibid.</ref>.
 +
 +
[[Tunisia Energy Situation#toc|►Go to Top]]
 +
 +
 +
== Renewable Energy<br/> ==
 +
 +
Currently, renewable energy plays a minor role in the energy supply.The use of solar energy for thermal purposes is widespread in Tunisia and can be regarded as a success story. Since its launch in 2005, the ANME program “PROSOL THERMIQUE”, meant to promote the installation of solar water heaters, has led to an installed capacity of 487,853 m<sup>2</sup> in 2012<ref name="GIZ, Le marché solaire thermique en Tunisie. Christopher Gross, Situation actuelle et perspectives (2013).">GIZ, Le marché solaire thermique en Tunisie. Christopher Gross, Situation actuelle et perspectives (2013).</ref>.<br/>
 +
 +
Regarding grid-connected renewables, the total installed capacity of renewable energy was an estimated of 312 MW in early 2016 (245 MW of wind energy, 62 MW of hydropower and 25 MW of PV), that was 6% of the total capacity<ref name="Bureau des statistiques, Ministère de l‘Industrie.">Bureau des statistiques, Ministère de l‘Industrie.</ref>. In terms of electricity production this meant 3% of this an annual production in 2013: 2.6% (357.8 GWh) from wind turbines and 0.4% (60.1 GWh) from hydropower<ref name="http://www.oitsfax.org/files/AApresentationHDR20140323.pdf">http://www.oitsfax.org/files/AApresentationHDR20140323.pdf</ref>.<br/>
 +
 +
There are two large wind parks in Tunisia, both operated by state utility STEG, one in the region of Bizerte in Metline and Kechabta &nbsp;with a capacity of 190 MW operational since 2012; and one in the region of Sidi Daoud, with a capacity of 55 MW, built in 3 phases between 2000 and 2009<ref name="Ibid.">Ibid.</ref>.<br/>
 +
 +
&nbsp;As for photovoltaics, there was a total capacity of 25 MW as of early 2016, mostly small-scale private installations most of whose capacity ranges between 1 kW and 10 kW. In low voltage, in the residential sector the capacities range from 1 kW to 17 kW and in the commercial sector capacities are between 10 and 30 kW. In medium voltage, capacities in commercial sector range between 25 and 100 kW<ref name="GIZ, RE-ACTIVATE.">GIZ, RE-ACTIVATE.</ref>. As of early 2015, there were only three operational PV installations with a capacity of at least 100 kW: a 149 kWp installation in Sfax<ref name="GIZ, Enabling PV.">GIZ, Enabling PV.</ref>, a 211 kWp installation operated by the Tunisian potable water supply company SONEDE and a 100 kWp installation in the region of Korba<ref name="https://energypedia.info/images/a/a2/COMPTE_RENDU_Modes_de_Financement.pdf">https://energypedia.info/images/a/a2/COMPTE_RENDU_Modes_de_Financement.pdf</ref>, both connected to the medium voltage, and realized by Tunisian installer companies.<br/>
 +
 +
The first large scale solar power plant of a 10 MW capacity, co-financed by the German development bank KfW and the EU's <span style="font-size: 13.6px; line-height: 20.4px; background-color: rgb(255, 255, 255);">Neighbourhood Investment Facility</span>&nbsp;(NIF) and implemented by STEG, is due 2018 in Tozeur<ref name="GIZ, Secretariat of the German-Tunisian Energy Partnership.">GIZ, Secretariat of the German-Tunisian Energy Partnership.</ref>.<br/>
 +
 +
Regarding the off-grid use of renewable energies, 11,000 decentralised PV systems have been installed<ref name="GIZ, Enabling PV.">GIZ, Enabling PV.</ref>.
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<div><div id="ftn9">
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[[Tunisia Energy Situation#toc|►Go to Top]]
 +
</div></div>
 +
  
{| width="350" cellspacing="1" cellpadding="1" border="0" align="left" class="FCK__ShowTableBorders"
+
== Electricity ==
|-
 
| __TOC__
 
|}
 
<div style="clear: both"></div>
 
= Background information  =
 
  
Tunisia is located in Northern Africa bordering Algeria and Libya. Tunisia’s coast to the Mediterranean Sea represents its northern and most of the eastern border. Consequently, in the northern part and along the eastern coast Mediterranean climate is prevalent. In the interior the climate becomes more Saharan-continental as precipitation significantly declines. The Atlas Mountains<br>are present in the northern part of the country and range from south-west to north-east. To the south of the Atlas the climate is arid throughout the year. Blowing from the desert towards the Mediterranean, the Scirocco wind is<br>very common in spring and autumn and usually reaches the greatest wind speeds in March and in November with a maximum of 100 km / h. The official language in Tunisia is Arabic with French as the second language. The form of government of Tunisia is a presidential republic. Backed up by a constantly growing economy in recent years, the Tunisian government is considered comparably stable characterized by political pluralism. Military does not interfere with politics. Tunisians foreign policy is oriented towards the West. In politics more than 20&nbsp;% of women are present, fundamentalist Islam is being rejected.<ref name="null">CIA 2009</ref> Tunisia is a middle income country with about 80&nbsp;% of the population benefitting form health- and social insurance. Since 1996 Tunisia runs a program of economic liberalization and structural adjustment supported by the International Monetary Fund (IMF), the World Bank and the European Union (EU). The EU represents the first trading partner of Tunisia. As one of the European Union’s most established trading partners in the Mediterranean region, Tunisia has signed an Association Agreement and entered a free trade area with the EU. In 2008, the inflation rate was 5&nbsp;%.<ref>CIA 2009</ref> In 2006, 4.2&nbsp;% of the Tunisian population lived in poverty.<span style="color: rgb(255,0,0)"><ref>Auswärtiges Amt 2009</ref> </span>
+
=== Installed Capacity and Generation ===
  
= Energy Market  =
+
The installed capacity was of 4,799 MW in 2014<ref name="Bureau des statistiques, Ministère de l’Industrie.">Bureau des statistiques, Ministère de l’Industrie.</ref> ‒ with the biggest share (4,492 MW/94%) provided by natural gas fired thermal power stations. The 6% left are divided between hydroelectric power (62 MW as of 2014) and wind generating plants (245 MW as of 2014<ref name="http://www.anme.nat.tn/fileadmin/user1/doc/DEP/Rapport_final__PST.pdf">http://www.anme.nat.tn/fileadmin/user1/doc/DEP/Rapport_final__PST.pdf</ref>). Electricity is generated almost exclusively from combustible fossil fuels: 93&nbsp;% natural gas, 7&nbsp;% heavy fuel with only a tiny share left to renewables (3% in 2013<ref name="http://www.oitsfax.org/files/AApresentationHDR20140323.pdf">http://www.oitsfax.org/files/AApresentationHDR20140323.pdf</ref>).
  
== Overview Energy Market  ==
+
In 2014, the state-owned company, STEG, remained the major electricity producer, supplying 86% of the demand, followed by an IPP, CPC (Carthage Power Company) which produced 10% of the consumed electricity. The last 4% are produced by small scale producers for their own needs (e.g. industries). &nbsp;
  
The Tunisian primary energy supply has increased roughly linear in the past and was around 80 PJ in 1970. The share of coal and peat has always been minimal and by now reached zero, whereas the share of oil, including crude oil and petroleum products, has always been the largest. However, the absolute amount has not increased significantly in the past 15 years reaching 365.9 PJ in 2006. The strongest growth can be observed in the gas sector which by 2006 has reached 39&nbsp;% of the primary energy supply. The amount of combustible renewables and waste has increased slightly to the value of 48.6 PJ in 2006, representing 13&nbsp;% of the primary energy supply. The 2006 shares can be seen in the following figure. 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. Yet, increasing effort in oil and gas production resulted in 86 210 barrels per day in 2007 compared to 76 900 barrels per day in 2005.<ref>CIA 2009</ref> Further, Tunisia receives natural gas from a pipeline between Algeria and Italy that runs across Tunisian territory. Jointly, in 2007 this led to an even energy balance for the first time in recent years. Thus, the effects of rising world prices for energy were largely mitigated. In Tunisia the industrial sector is the largest energy consumer which is illustrated in table 3. In 2007, Tunisia’s production of energy in relation to its import /export-balance is shown in the table below:
+
&nbsp;'''Installed power plant capacity in MW (excluding small scale PV)<ref name="Bureau des statistiques, Ministère de l‘Industrie.">Bureau des statistiques, Ministère de l‘Industrie.</ref>'''
  
{| cellspacing="1" cellpadding="1" width="500" border="1"
+
{| cellspacing="1" cellpadding="0" border="1" style="width: 48%; width:48.44%"
 
|-
 
|-
| Tunisia's energy production, consumption and import/export balance in 2007
+
| style="width:135px" |
|  
+
'''Type of Power Plant'''
|  
+
 
|  
+
| style="width:40px" |  
|
+
'''2013'''
 +
 
 +
| style="width:72px" |  
 +
'''2014*'''
 +
 
 +
| style="width:44px" |  
 +
'''Share 2014 (%)'''
 +
 
 
|-
 
|-
|  
+
| style="width:135px" |  
| Petroleum (thousand barrels per day)  
+
Thermal (steam) power plant
| Natural Gas (billion cubic feet)
+
 
| Coal
+
| style="width:40px" |
| Total Primary Energy (Quadrillion Btu)
+
1,040
 +
 
 +
| style="width:72px" |
 +
1,040
 +
 
 +
| style="width:44px" |
 +
24
 +
 
 
|-
 
|-
| Total Production
+
| style="width:135px" |
| 86.05
+
Combined-cycle gas turbine
| 90
+
 
| 0
+
| style="width:40px" |
| 0.269
+
789
 +
 
 +
| style="width:72px" |
 +
1,209
 +
 
 +
| style="width:44px" |
 +
28
 +
 
 
|-
 
|-
| Consumption
+
| style="width:135px" |
| 88.5
+
Gas turbine
| 136
+
 
| 0
+
| style="width:40px" |
| 0.334
+
1,772
 +
 
 +
| style="width:72px" |
 +
1,779
 +
 
 +
| style="width:44px" |
 +
41
 +
 
 
|-
 
|-
| Net Exports/ Imports
+
| style="width:135px" |
| -2.45
+
Hydropower
| -46
+
 
| 0
+
| style="width:40px" |
|
+
62
 +
 
 +
| style="width:72px" |
 +
62
 +
 
 +
| style="width:44px" |
 +
1
 +
 
 
|-
 
|-
| Proved reserves
+
| style="width:135px" |
| (billion barrels) 0.4
+
Wind power
| 2.75
+
 
| -
+
| style="width:40px" |
|  
+
245
|}
+
 
 +
| style="width:72px" |
 +
245
 +
 
 +
| style="width:44px" |  
 +
6
  
Source: EIA 2008
+
|-
 +
| style="width:135px" |
 +
'''STEG total'''
  
== The Electricity Grid  ==
+
| style="width:40px" |
 +
'''3,908'''
  
&nbsp;The transmission grid of Tunisia, run by the Société Tunisienne d’Electricité et du Gaz (STEG), has been extended<br>constantly throughout recent years. In 2008 the low voltage grid is being operated at 90 kV and sums up to a total of 1 108 km. The medium voltage transmission lines at 150 kV amount to 1 812 km length and the high voltage lines at 225 kV sum up to a total of 2 741 km. In 2005, the 90 kV lines amounted to 1 071 km, 150 kV lines to 1 728 km and the 225 kV grid consisted of 2 532 km. The transmission grid is connected to the European grid via the grids in Algeria and Morocco. To the east, the Tunisian power grid is linked with Libya. The aim is to establish a North African interconnected grid that would extend through Egypt and Jordan as far as Syria. Further, a 400 kV high voltage sea cable to Italy is planned<span style="color: rgb(255,0,0)">.5</span> Grid losses are primarily due to maintenance or other incidents. Along with the prolonging of the transmission grid, the amount of total losses has risen as displayed in table 5.&nbsp;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&nbsp;»Electricity Distribution Network Rehabilitation and Restructuring Project«&nbsp;has been launched. In September 2009 the African Development Bank (AfDB) approved a loan of 87.83 million Tunisian dinars (TND) (48.31 million €), to support financing of the&nbsp;»rehabilitation and restructuring«&nbsp;of the national grid of Tunisia. The total project cost is estimated at TND 111.66 million (61.41 million €). The project is focusing particularly on upgrading low voltage underground and overhead lines and medium voltage and low voltage transformers. It aims at improving the reliability and safety of the electricity distribution grid.<span style="color: rgb(255,0,0)">6</span>&nbsp;
+
| style="width:72px" |
 +
'''4,335'''
  
<br>
+
| style="width:44px" |
 +
'''100'''
  
{| width="500" cellspacing="1" cellpadding="1" border="1"
 
 
|-
 
|-
| Causes for grid losses (in GWh)
+
| style="width:135px" |
|  
+
IPPs
|  
+
 
|  
+
| style="width:40px" |
 +
471
 +
 
 +
| style="width:72px" |
 +
471
 +
 
 +
| style="width:44px" |
 +
-
 +
 
 
|-
 
|-
|  
+
| style="width:135px" |  
| Incidents
+
'''Total capacity, national'''
| Maintenance
+
 
| Total
+
| style="width:40px" |  
|-
+
'''4,379'''
| 2006
+
 
| 2,159
+
| style="width:72px" |  
| 3,345
+
'''4,806'''
| 5,504
+
 
|-
+
| style="width:44px" |  
| 2007
+
'''-'''
| 2,330
+
 
| 3,770
 
| 6,100
 
|-
 
| 2008
 
| 2,129
 
| 4,189
 
| 6,318
 
 
|}
 
|}
  
<br>
+
(*)Data not yet officially published
  
Source: Société Tunisienne d’Electricité et du Gaz (STEG) Annual Report 2008
+
[[Tunisia Energy Situation#toc|►Go to Top]]
  
== Installed Capacity  ==
 
  
The installed capacity in Tunisia totalled roughly 3,460 MW. Of this,&nbsp;3,350 MW (97&nbsp;%) was provided by thermal power stations, 62 MW (1.7&nbsp;%) by hydroelectric power and&nbsp;53 MW (1.5&nbsp;%) by wind generating plants (see table below). For electricity generation from combustible fossil fuels, 95&nbsp;% is natural gas and 5&nbsp;% heavy fuel. In general, the state-owned power utility STEG has primarily relied on gas-fired power plants for generating electricity, fuelled by natural gas from the country’s own reserves and by imports from Algeria. 11&nbsp;% 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 (15&nbsp;%) of the nationally available capacity. In 2009, the peak load in public supply was 2,660 MW representing an increase of&nbsp;193 MW compared to 2008. By 2011, the total power generating capacity is supposed to be expanded to 4 400 MW in order to meet the growing demand for electricity. As well as adding new thermal power plants, the government envisages renewable energies to provide a minor share (4&nbsp;%) of the added production capacity.
+
=== Consumption ===
  
'''Installed power plant capacity in MW, Tunisia'''
+
The peak load in 2012 was 3 353 MW and in 2013, due to more favorable climatic conditions, 3 144 MW.
  
{| width="500" cellspacing="1" cellpadding="1" border="1"
+
In Tunisia 46% of the electricity was consumed on the low voltage level, 45% on the medium voltage and 9% on the high voltage level.
 +
 
 +
{| cellspacing="1" cellpadding="0" border="1" style="width: 100%; width:100.0%"
 
|-
 
|-
| Type of Power Plant
+
| style="width:407px" |
| 2007
+
'''Electricity consumption of individual sectors in 2013<ref name="STEG, Rapport annuel 2013.">STEG, Rapport annuel 2013.</ref>'''
| 2008
+
 
| 2009
+
| style="width:113px" |  
| 2010
+
| style="width:87px" |  
 
|-
 
|-
| Thermal (steam) power plant
+
| style="width:407px" |
| 1,090
+
| style="width:113px" |
| 1,090
+
'''GWh'''
| 1,079
+
 
|
+
| style="width:87px" |
 +
'''%'''
 +
 
 
|-
 
|-
| Combined-cycle gas turbine
+
| style="width:407px" |
| 364
+
Industry (Medium and High Voltage)
| 364
+
 
| 362
+
| style="width:113px" |
|
+
4 909
 +
 
 +
| style="width:87px" |  
 +
34
 +
 
 
|-
 
|-
| Gas turbine
+
| style="width:407px" |
| 1,280&nbsp;  
+
Transport & communication<span style="font-size: 13.6px; line-height: 20.4px; background-color: rgb(255, 255, 255);">&nbsp;(Medium and High Voltage)</span>
| 1,280
+
 
| 1,436
+
| style="width:113px" |
|
+
311
 +
 
 +
| style="width:87px" |
 +
2
 +
 
 
|-
 
|-
| Hydropower
+
| style="width:407px" |
| 62
+
Tourism<span style="font-size: 13.6px; line-height: 20.4px; background-color: rgb(255, 255, 255);">&nbsp;(Medium and High Voltage)</span>
| 62
+
 
| 62
+
| style="width:113px" |
|
+
567
 +
 
 +
| style="width:87px" |  
 +
4
 +
 
 
|-
 
|-
| Wind power
+
| style="width:407px" |
| 19
+
Service<span style="font-size: 13.6px; line-height: 20.4px; background-color: rgb(255, 255, 255);">&nbsp;(Medium and High Voltage)</span>
| 19
+
 
| 53
+
| style="width:113px" |
|
+
891
 +
 
 +
| style="width:87px" |  
 +
6
 +
 
 
|-
 
|-
| STEG total
+
| style="width:407px" |
| 2,815
+
Agricultural pump sets<span style="font-size: 13.6px; line-height: 20.4px; background-color: rgb(255, 255, 255);">&nbsp;(Medium and High Voltage)</span>
| 2,815
+
 
| 2,992
+
| style="width:113px" |
|
+
556
 +
 
 +
| style="width:87px" |
 +
4
 +
 
 
|-
 
|-
| IPPs
+
| style="width:407px" |
| 498
+
Pumping stations (water, sanitation service)<span style="font-size: 13.6px; line-height: 20.4px; background-color: rgb(255, 255, 255);">&nbsp;(Medium and High Voltage)</span>
| 498
+
 
| 473
+
| style="width:113px" |
|
+
563
 +
 
 +
| style="width:87px" |  
 +
4
 +
 
 
|-
 
|-
| Total capacity, national
+
| style="width:407px" |
| 3,313
+
Low voltage
| 3,313
+
 
| 3,465
+
| style="width:113px" |  
|  
+
6 521
|}
 
  
Source: Société Tunisienne d’Electricité et du Gaz (STEG) Annual Report&nbsp;2008 and http://www.steg.com.tn/en/institutionnel/produire.html
+
| style="width:87px" |
 +
45
  
{| width="500" cellspacing="1" cellpadding="1" border="1"
 
 
|-
 
|-
| '''Electricity consumption of individual sectors in 2008'''  
+
| style="width:407px" |
|
+
'''Total''''''<sup>1</sup>'''
|
+
 
|-
+
| style="width:113px" |  
|
+
'''14 380'''
| GWh
+
 
| &nbsp;%
+
| style="width:87px" |  
|-
+
'''100'''
| Industry
+
 
| 5,922
 
| 45
 
|-
 
| Transport
 
| 175
 
| 1
 
|-
 
| Residential
 
| 3,381
 
| 26
 
|-
 
| Commercial/ public services
 
| 2,811
 
| 22
 
|-
 
| Agriculture/ Forestry
 
| 743
 
| 6
 
|-
 
| Total
 
| 13,032
 
| 100
 
 
|}
 
|}
  
Source: IEA&nbsp;2008
+
<sup>1</sup>Total may not add up due to rounding.
 +
 
 +
The gas consumption has marked a steep increase (5,344 Ktep in 2013) and 72.5% of its production is used for electricity consumption, 7.1% for the industry sector and 20% for the residential and tertiary sectors.
  
== Electricity Generation  ==
+
[[Tunisia Energy Situation#toc|►Go to Top]]
  
In 2008, 14 580 GWh of electricity were produced in Tunisia. In 2008, a total of 13 757 GWh of electrical energy production was fed into the power grid (STEG and IPPs). The difference was produced and consumed by large industrial companies without using the transmission grid. Compared to the 13 146 GWh of 2007, this represents an increase of 4.6&nbsp;%. In 2008 Tunisia’s the import/export-balance of electricity was as follows:&nbsp;&nbsp;&nbsp;  
+
<br/>
 +
 
 +
 
 +
=== Grid ===
 +
 
 +
STEG controls the Tunisian grid and holds a monopoly on electricity transportation and distribution. The grid has three voltages: high (225 kV), medium (150 kV) and low (90 kV). 99.5% of the households have had an access to electricity since 2006. &nbsp;
 +
 
 +
The transmission grid is connected to the Algerian grid and, on its Eastern end, to Libya. Regional grid synchronisation tests with the participation of Morocco, Algeria, Tunisia, Libya and Egypt have been carried out but failed so far due to frequent synchronization issues with the Egyptian grid. Furthermore, a 400 kV high voltage sea cable with a capacity of 1,000 MW binding North Africa to Europe via Tunisia and Italy is currently discussed<ref name="http://www.terna.it/default/home_en/the_company/about_terna/terna_group_abroad/growth_abroad/elmed_project.aspx">http://www.terna.it/default/home_en/the_company/about_terna/terna_group_abroad/growth_abroad/elmed_project.aspx</ref>.
 +
 
 +
Grid losses are primarily due to maintenance or other incidents. Along with the prolonging of the transmission grid, losses have risen: in 2012 it represented 2,735 GWh<ref name="http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=TUNISIA&product=ElectricityandHeat">http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=TUNISIA&product=ElectricityandHeat</ref>. The growing economy of Tunisia and rise of living standards contributed to a significant increase in the electricity consumption leading to ever more often grid saturation. In addition, some power plants and facilities are out-dated and can no longer cope with the actual load of the network; hence, overload, losses and high voltage drops occur on a regular basis. To address these issues, the&nbsp;»Electricity Distribution Network Rehabilitation and Restructuring Project«&nbsp;has been launched, this should improve the reliability and safety of electricity distribution.
 +
 
 +
[[Tunisia Energy Situation#toc|►Go to Top]]
 +
 
 +
<br/>
 +
 
 +
=== Electricity Prices<br/> ===
 +
 
 +
'''Low voltage''' ([https://www.steg.com.tn/fr/clients_res/tarif_electricite.html Tarifs as of March 2015])<br/>
 +
 
 +
The Tunisian electricity tariff system is complex, subsidized and cross-subsidized. On the general low voltage, tariffs depend on the sector of the consumer (residential or non-residential) and the consumption per month in kWh. Tariffs are most heavily subsidized for households whose monthly consumption is below 50, 100 and 200 kWh. These households pay 0.075 TND [0.034 EUR], 0.108 TND [0.049 EUR] and 0.140 TND [0.064 EUR] for each kWh consumed. Households whose consumption surpasses 200 kWh per month have to pay 0.151 TND (0.069 €)/kWh for the first 200 kWh, 0.184 TND (0.084 €)/kWh for the following 100 kWh, 0.280 TND (0.13 €)/kWh for the following 200 kWh, and 0.350 TND (0.16 €) for each kWh above 500 kWh/month. Production costs are thus more than covered in the tranches 301-500.<br/>
 +
 
 +
'''Medium voltage''' ([https://www.steg.com.tn/fr/clients_ind/tarifs_mt.html Tarifs as of March 2015])<br/>
 +
 
 +
There are three to four tariff slots depending on the sector and on the day time. Prices range from 0.088 TND/kWh (0.040 €) to 0.238 TND/kWh (0.109 €). The subsidies no longer apply to cement producers which have paid electricity to its real cost since 2014 (cheapest slot: 0.129 TND (0.059 €)/kWh, most expensive slot 0.311 TND (0.142€)/kWh).<br/>
 +
 
 +
'''High voltage''' ([https://www.steg.com.tn/fr/clients_ind/tarifs_ht.html Tarifs as of March 2015])&nbsp;<br/>
 +
 
 +
This represents a tiny share of the market, with only a handsome of subscribers. There are four tariff slots and prices range between 0.111 TND (0.051€)/kWh and 0.233 TND (0.106€)/kWh).<br/>
 +
<div>[[Tunisia Energy Situation#toc|►Go to Top]]</div>
 +
<br/>
 +
 
 +
= Energy Policy<br/> =
 +
 
 +
== General Information<br/> ==
 +
 
 +
Exploration and exploitation of conventional and unconventional fossil resources are carried outin order to address the demand and limit importations. Generally speaking, diversity should help protecting Tunisia from the international prices volatility and reduce its import dependency.<br/>
 +
 
 +
In order to reduce its dependency from Algerian gas, Tunisia needs to diversify its electric mix and extend its interconnections. A gas interconnection with Italy already exists (“Gazoduc”), currently being used to transport Algerian gas to Europe. However this interconnection may be used for imports in future. An electric interconnection with Italy with a 400 kV submarine cable is currently being considered. It may be used for import and export later on: complementary daily and annual production and consumption profiles of North Africa and Europe can create synergies.<br/>
 +
 
 +
Furthermore, there is a strong need for institutional and budget reforms in the energy sector since the current situation drastically differs from the one 20 years ago. Some of its aspects such as subsidies have become a burden hindering a further development of the whole sector. In November 2014, the Industry Minister M. Ben Naceur called for drastic cuts for the year 2015. Subsidies should decrease from 1.3 billion Euros (2.7 billion TND) to 0.9 billion Euros (1.96 billion TND) in order to use the saved money in investment projects<ref name="http://directinfo.webmanagercenter.com/2014/11/30/tunisie-une-augmentation-attendue-de-7-des-prix-de-lelectricite-et-du-gaz-en-2015/">http://directinfo.webmanagercenter.com/2014/11/30/tunisie-une-augmentation-attendue-de-7-des-prix-de-lelectricite-et-du-gaz-en-2015/</ref>. In 2014, energy prices were raised by approximately 10% in total in order to reduce subsidies. By June 2014, electricity price subsidies for cement producers’ were completely phased out.
 +
 
 +
Forecasts from the ANME expected the consumption to double by 2030 without implementation of a comprehensive action, therefore energy efficiency should be further strengthened. Measures since 2000 have brought results: Tunisia has reduced its energy intensity by 20%<ref name="ANME, Stratégie Nationale de maîtrise de l‘énergie. Objectifs, moyens et enjeux. ">ANME, Stratégie Nationale de maîtrise de l‘énergie. Objectifs, moyens et enjeux. </ref>.
 +
 
 +
[[Tunisia Energy Situation#toc|►Go to Top]]
 +
 
 +
<br/>
 +
 
 +
<br/>
 +
 
 +
 
 +
== Renewable Energy Policy<br/> ==
 +
 
 +
&nbsp;For more info, see [[Analysis of the Regulatory Framework for Renewable Energy in Tunisia|Analysis of the Regulatory Framework for Renewable Energy in Tunisia]]<br/>
 +
 
 +
<span style="font-size: 13.6px; line-height: 20.4px; background-color: rgb(255, 255, 255);">A new '''law on renewable energies''' was adopted by Parliament in May 2015. The objective of this law is to promote private investment in renewables to contribute to the 30/30 objective of the Tunisian Solar Plan. The law foresees three project development regimes: (1) self-consumption, (2a) complete sale of electricity to the utility STEG (feed-in tarifs, projects under 10 MW for PV and 30 MW for wind), (2b) complete sale of electricity to the utility STEG (tenders, projects above 10 MW for PV and 30 MW for wind), (3) electricity export. The implementation bylaws of the RE law were approved by the Council of Ministers in July 2016. As of August 2016, the new regulatory framework is not yet being implemented.&nbsp;</span>
 +
 
 +
The '''Tunisian Solar Plan''', a renewable energy development plan elaborated by the ANME but not officially adopted by parliament or government, foresees a 30% share of renewables in the electricity mix by 2030. This corresponds to an additional totally capacity of 3 GW and an overall investment of 4.75 billion euro<ref name="http://www.anme.nat.tn/fileadmin/user1/doc/DEP/Rapport_final__PST.pdf">http://www.anme.nat.tn/fileadmin/user1/doc/DEP/Rapport_final__PST.pdf</ref>. Figure 3 shows the development goals by technology.The Tunisian Solar Plan was updated in 2014, and a new update is planned for 2015.<br/>
 +
 
 +
<u>Figure 3: Foreseen RE Installed Capacity in Tunisia in 2020 and 2030</u><ref name="ANME, Stratégie nationale de maîtrise de l'énergie. Objectifs, moyens et enjeux. p. 23">ANME, Stratégie nationale de maîtrise de l'énergie. Objectifs, moyens et enjeux. p. 23</ref><br/>[[File:Installed Capacity RE in TUN.png|frame|left|500px|Installed Capacity RE in TUN.png|alt=Installed Capacity RE in TUN.png]]<br/>
 +
<div style="clear: both">The law No. 2004-72 on the rational use of energy defines wise use of energy as a national priority and as the most important element of a sustainable development policy. It states three principal goals: energy saving, renewable energy promotion and creation of new forms of energy, that favour costs’ reduction as well as the National economy and the environment.<br/></div>
 +
[[Tunisia Energy Situation#toc|►Go to Top]]<br/>
 +
 
 +
<br/>
  
{| width="500" cellspacing="1" cellpadding="1" border="1"
 
|-
 
| Import/ Export Balance of Electricity Balance in 2008
 
<br>
 
  
|
+
== Energy Efficiency Policy<br/> ==
|-
 
| Import
 
| 122&nbsp;GWh
 
|-
 
| Exports
 
| 129&nbsp;GWh
 
|-
 
| Net Exports
 
| 7&nbsp;GWh
 
|}
 
  
&nbsp;Source: IEA 2008
+
The National Energy Conservation Action Plan<ref name="http://maghrenov.eu/file/download/2878/Strategie+Nationale+de+Maitrise+de+l%27Energie_web.pdf">http://maghrenov.eu/file/download/2878/Strategie+Nationale+de+Maitrise+de+l%27Energie_web.pdf</ref> consists of three phases: (1) awareness raising, first concrete and grass-root actions were taken under two programs, (2000-2013) that contributed to an annual decrease of 2% in energy intensity; (2) continued implementation and voluntary investment via the mobilisation of industry, construction and transport (audits, cogeneration, lighting, household appliances, buildings, transport); (3) implementation of large scale projects in order to reach the 30-30 goals ‒ 30% of electricity shall be produced by renewable sources by 2030 ‒ (2020-2030).<br/>
  
== Renewable Energies  ==
+
The Action Plan also foresees an independent regulator in the electricity market.<br/>
  
Currently, renewable energies play an insignificant role in total energy supply. Apart from centralised electricity generation from hydropower, the use of renewable energies to produce electricity is still at an early stage of development in Tunisia. Regarding grid-connected power plants, the focus lies currently on wind energy, although utilisation of solar energy for thermal purposes is also gaining importance. In 2008, 62 MW of hydro power and 19 MW of wind power were installed according to the national utility company STEG.<span style="color: rgb(255,0,0)">7 </span>Other sources speak of 55 MW installed wind energy capacity (wind park of Sidi Daoud).8 According to STEG 37.9 GWh were produced by hydro power and 39.4 GWh by wind energy each providing a market share of about 0.4&nbsp;%.9 Regarding the off-grid use of renewable energies, 11 000 decentralised PV systems have been installed for rural electrification. An uptake of renewable energies can be expected with law 2009-7, described in more detail under "Framework Conditions fro Renewable Energies".&nbsp;
+
[[Tunisia Energy Situation#toc|►Go to Top]]<br/>
  
== Electricity Prices  ==
+
<br/>
  
By regional standards, electricity prices in Tunisia are at medium level. In November 2008 they ranged between aminimum of 0.059 and a maximum of 0.113 € per kWh.<span style="color: #ff0000">10</span> The Tunisian Government manages to keep electricity prices low by subsidising the price of natural gas to the tune of twenty per cent. For a number of years now the cost of this state subsidy has risen sharply along with global market prices for crude oil, and is an increasing burden on the Tunisian budget.&nbsp;
+
= Key Actors in the Energy Sector<br/> =
  
== Liberalisation  ==
+
== Governmental Bodies and Agencies<br/> ==
  
Until 1996 the monopoly on electricity generation and marketing was held by the STEG. Since then, liberalization of the energy market took place and the market was opened for Independent Power Producers (IPPs). However, with a market share of 85&nbsp;%, STEG still is the biggest 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 STEG.<br>Next to STEG, Large Energy Consuming Industries (IGCElec.) were encouraged to produce power for their own needs (see&nbsp;"Legal Conditions and Support Schemes for Renewable Energies"). The surplus they produce is fed into the national grid. Installed capacity is contributed by the following IGCElec. companies:
+
'''DGE''' (Direction Générale de l’Energie, Directorate-General for Energy) is a sub-department of the Ministry of Industry, Energy and Mines. It is designed to conceive, coordinate and implement the national energy policy and to draft energy action plans and energy management programs.<br/>
  
*Cimenterie d’Oum Klil
+
'''STEG''' (Société Tunisienne de l’Electricité et du Gaz, Tunisian Company for Electricity and Gas) is the national energy producer, TSO and supplier. The STEG was created by law 62-8 in 1962<ref name="https://www.steg.com.tn/fr/index.html">https://www.steg.com.tn/fr/index.html</ref>.<br/>
*Cimenterie de Bizerte
 
*Cimenterie de Jbel Ouest
 
*Ciments Blancs (SOTACIB)  
 
*Cimenterie de Gabes
 
*El Fouledh
 
  
Two IPPs generate electricity for feed in as IPPs:  
+
'''ETAP''' (Entreprise Tunisienne des Activités Pétrolières, Tunisian Refining Industry Company). Created in 1972, this stated-owned company plans oil and gas explorations and manage national gas and petroleum wealth<ref name="http://www.etap.com.tn/">http://www.etap.com.tn/</ref>.<br/>
  
*Carthage Power Company CPC (471 MW in 2008) is an independent power project formed by PSEG Global and Marubeni Corporation. It owns and operates a generation facility located in the city of Radès in northeastern Tunisia. The power plant, which meets about one-quarter of the country’s electricity needs, is a combined-cycle cogeneration facility that uses natural gas as the primary fuel, with diesel fuel as backup. Gas for the plant is sourced from Algeria and BG Tunisia’s Miskar concession. State-owned gas and power company Société Tunisienne de l’Electricité et du Gaz 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.«<span style="color: rgb(255,0,0)">11</span>  
+
'''ANME''' (Agence Nationale de la Maîtrise de l’Energie, National Agency for Energy Management). Created in 1985, this agency specialised in energy management supports the Industry Ministry on energy transition<ref name="www.anme.nat.tn/">www.anme.nat.tn/</ref>.<br/>
*Société d’Electricité d’El Bibane SEEB (27 MW in 2005, 40 expected in 2010)&nbsp;»is the second power plant in Tunisia to be constructed under legislation allowing independent power operations to utilize natural gas as fuel. Electricity generated from the plant is sold to the Tunisian national power company Société Tunisienne de l’Electricité et du Gaz under a long term power purchase contract.«<span style="color: rgb(255,0,0)">12</span>&nbsp; Fundamental to the current development was also Law No. 96-27 of 1996, which enabled private-sector involvement in the electricity sector. The state-owned power utility STEG was demonopolized in the field of electricity generation and private companies were allowed to participate in a bidding process to generate electricity which they sell to STEG as the sole buyer. The detailed terms and procedures for the granting of concessions to private generating companies were laid down in ordinance no. 9661125 of 20 June 1996.
 
  
== Rural Electrification  ==
+
'''AGIL''' (Société Nationale de Distribution des Pétroles, National Company of Oil Distribution) shares the oil distribution market with some private companies (s.a. Total, Shell, BP, etc.)<ref name="http://www.agil.com.tn/">http://www.agil.com.tn/</ref>.<br/>
  
According to estimates by the state-owned utility company STEG, the degree of electrification for Tunisia as a whole was 99.5&nbsp;% in 2008. In rural areas, the figure was 99&nbsp;%, while 99.8&nbsp;% of the urban areas had access to electricity. Grid coverage is poorest in the southeast 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&nbsp;% of the rural population were connected to the power grid, while around 1990 the figure was still only about 50&nbsp;%. As a complementary measure along with the expansion of the grid, the installation of more than 11 000 decentralised PV systems has also played a part in the high electrification rates.13
+
Fond de Tranisition Energétique (Energy Transition Fund, FTE), until 2014 Fond National de Maîtrise de l’Energie (National Fund for Energy Management), created in 2005, it helps ANME to provide renewable projects with a financial support (among other subsidies)<br/>
  
= Market Actors  =
+
'''STEG Energies Renouvelables''', created in 2010, this is a branch of the Tunisian Company for Electricity and Gas fully devoted to renewable energies<ref name="http://www.steg-er.com.tn/">http://www.steg-er.com.tn/</ref>.<br/>
  
*Ministry of Industry and Energy (Ministère de l’Industrie, de l’Energie et des Petites et Moyennes Entreprises; TMIE); CSPIE and CIPIE
+
[[Tunisia Energy Situation#toc|►Go to Top]]
*National Agency for Energy Management (Agence Nationale pour la Maîtrise del’Énergie - ANME)
 
*Tunisian Company of Electricity and Gas (Société Tunisienne d’Electricité et du Gaz – STEG)
 
*Tunis International Centre for Environmental Technologies (Centre International des Technologies de l’Environment - CITET)
 
*Mediterranean Renewable Energy Centre (MEDREC)
 
  
= Political Framework Conditions in the Energy Sector  =
+
<br/>
  
The documentation of energy policy is dominated by energy efficiency and renewable energies over the last decades.<br>Efficiency and renewables are the dominant topics in all major publications. Therefore the following chapter on the political framework conditions for energy focuses on these topics. 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 a sustainable development policy. It states three principal goals: energy saving, the promotion of renewable energy and the substitution of forms of energy previously used, wherever this offers technical, economic and ecological benefits. Since 2005 with the adoption of above mentioned law and the creation of a national energy fund (subject of Law N° 2005-106) Tunisia set the political framework to increase energy efficiency and develop renewable energy sources. Decarbonisation of the energy sector and a decoupling of economic growth and GHG emissions occurred.16 Moderated primary energy demand growth of 2.8&nbsp;% per year and the increase of the renewable share towards 4&nbsp;% of the consumption until 2011 are the key measures to reduce GHG emissions in the energy sector. In 2009 the ANME described the energy policy in the context of the international efforts to reduce GHG emissions in a detailed development guide.17 ANME aims at the production of energy from natural gas to reduce energy sector emissions. Between 2008 and 2010 contract based programs in the industrial sector, roll-out of fluorescent energy saving lamps in the residential sector, the certification of electric appliances, cogeneration, thermal insulation of buildings, solar water heating and wind power generation are politically set priorities for the energy sector development.<span style="color: rgb(255,0,0)">18 </span>Combined information allows the conclusion that the energy policy framework in Tunisia forms a positive environment to increase energy efficiency and the share of renewable energies.19 The reduction of fossil energy consumption in large energy consuming industries is an important element of the national strategy, as much as the encouragement of IGCELec to install wind parks in order to produce electricity.<span style="color: rgb(255,0,0)">20</span> In February 2009, Tunisia adopted two support programs as a response to the world financial crisis targeted at increasing the competitiveness of companies (250 mio. €) and supporting the improvement of infrastructure (270 mio. €). To what extent the programs will influence the energy and power policies and market is unknown as of today.
+
== Utilities<br/> ==
  
&nbsp;
+
STEG is the national utility, it holds a monopoly.
  
= Framework Conditions for Renewable Energies  =
+
<br/>
  
== Strategies and objectives for renewable energies  ==
+
== Others ==
  
National targets published in 2009 are to reach a 10&nbsp;% (4&nbsp;% excluding biomass) renewable energy share in the primary energy consumption by 2010.21 Expert studies state that in 2030, a 6.5&nbsp;% share (excluding biomass) will be achieved.22 Tunisia has signed the statute of the International Renewable Energy Agency (IRENA) in April 2009. Energy policy also in regard to renewable energies and energy efficiency is drafted mainly in the&nbsp;»Four Year Programme for Energy Management 2008 – 2011«. Expected consequences of this strategy are: 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.<span style="color: rgb(255,0,0)">23</span> In 2008, Tunisia’s National Agency for Energy Conservation<br>released the Renewable Energy and Energy Efficiency Plan. Besides contributing to the above mentioned 10&nbsp;% target, this program is expected to result in a 20&nbsp;% reduction of energy demand by 2011. The main renewable capacity developments are expected to be 180 MW of wind energy installed by 2011.<span style="color: rgb(255,0,0)">24 </span>The government further aims to increase the installed PV energy capacity to 740.000 m² in 2008. Currently, about 300.000 m² of PV panels have been installed<span style="color: rgb(255,0,0)">.25 </span>RE are given a prominent role in Tunisian energy policy. Large wind projects are currently developed or in the application process. Energy efficiency is recognized as important and is being addressed in energy policies. Public interventions via financial support from the state budget and the mobilization of international financial resources have been decisive in the development of energy conservation in Tunisia<span style="color: rgb(255,0,0)">.26</span>
+
Currently only two IPPs generate electricity:
  
<br>  
+
#Carthage Power Company (CPC): Radès II Power Station (natural gas fired plant, total capacity 480 MW) started operation in 2002 under the terms of a build own operate (BOO) agreement and by 2010 was responsible for 21% of national production<ref name="http://www.carthagepower.com.tn/en/rades.php">http://www.carthagepower.com.tn/en/rades.php</ref>.
 +
#Societe d’Electricite d’El Bibane (SEEB): Tunisia’s second IPP, two 13.5 MW gas turbines that went on line in 2003<ref name="http://www.industcards.com/cc-tunisia.htm">http://www.industcards.com/cc-tunisia.htm</ref>.
 +
<div>
 +
----
 +
</div>
 +
<br/>
  
== Legal Conditions and Support Schemes for Renewable Energies  ==
+
= Energy Cooperation<br/> =
  
The legal conditions are based on Law No. 2004-72 and its modification in 2009: Law No. 2009-7. 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<br>element of a sustainable development policy. It states three principal goals: energy saving, the promotion of renewable<br>energy and the substitution of forms of energy previously used, wherever this offers technical, economic and ecological benefits. Article 14 lists four areas in the field of renewable energy which are to be treated as priority areas of a national promotion program:
 
  
#Expansion of wind power for electricity generation
 
#Introduction of incentives for the use of solar thermal energy
 
#Use of solar energy for further electrification of rural areas, irrigation and seawater desalination
 
#Encouragement of the greater use of production residuesn for energy generation and of geothermal sources and small-scale hydropower plants.<span style="color: rgb(255,0,0)">27</span>
 
  
Law No. 2009-7 modified the legal conditions designed in 2004 in several aspects. Autoproducers in the industrial or tertiary sector who install cogeneration facilities for their own use may now use STEG’s grid in order to transport their electricity from the site of supply to the site of consumption. Excess electricity can be sold to STEG.<br>Autoproducers in the industrial, tertiary or agricultural sector, who use renewable energies, have the same rights of installation, transport and excess sales. The same regulation applies to all autoproducers from renewable energy sources who feed into the low voltage grid. The exact conditions for the transport, the selling of excess energy and the respective upper limits are to be fixed in decree 2009-362. Furthermore, investments that are realized within the framework of ANME’s responsibility, which includes renewable energies, can also benefit from special, favourable conditions if they conclude a contract with ANME in which all technical, economic and financial aspects are fixed. Decree 2009-362 fixes the special conditions which apply to investments that are made within the field of action of ANME, thus including the use of renewable energies.<br>Support schemes to promote the implementation of renewable energies and energy efficiency measures available in Tunisia consists of two groups of instruments: direct financial incentives and tax incentives.<span style="color: rgb(255,0,0)">28</span> Capital subsidies, grants, or rebates (once-off payments by the government or utility) are available for the energy and power market.<span style="color: rgb(255,0,0)">29</span> The support is available for energy audits and implementation of EE measures<span style="color: rgb(255,0,0)">.30</span> In addition, the direct financial ncentives are aimed at the installation of car engine checkup sations; water heating by solar energy in the residential sectorand in private enterprises; energy substitution<br>of natural gas by renewable energies in the industrial and residential sector. The support for solar water heating includes<br>allowances amounting to 20&nbsp;% of the cost of the solar collectors, with a maximum of one hundred (100) TND (=55 €) for each square metre, directly disbursed to the supplier after installation of the equipments concerned. Further financial schemes applicable to the energy and power 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).<span style="color: rgb(255,0,0)">31 </span>However, according to sources in the country, currently PROMO-ISOL is still at the planning stage. Finally, the&nbsp;»National Fund for Energy Conservation«&nbsp;(FNME), subject of Law N° 2005-106, dated 19 December<br>2005 offers financial resources for supporting energy conservation and renewable energy investments in Tunisia based on the granting of allowances.32 Furthermore, tax incentives are in place for energy conservation and renewable energy projects. The tax incentives are:
 
  
*Reduction of customs duties to the minimum rate of 10&nbsp;% (from a general rate of 18&nbsp;%) and exemption from VAT for imported equipment used in the field of energy conservation or of renewable energies, for which no similar equipment is manufactured locally;
 
*Reduction of customs duties and exemption from VAT for imported raw materials and semi-finished products entering in the production of equipment used in the field of energy conservation or of renewable energies;
 
*Exemption from VAT for locally manufactured raw materials and semi-finished products entering in the production of equipment used in the field of energy conservation or of renewable energies;
 
*Exemption from VAT for equipments manufactured locally and used in the field of energy conservation or of renewable energies.
 
  
Financial incentives have been significantly expanded with Décret 2009-362, mainly RE in agriculture, PV systems, biogas plants, etc. Policies of renewable portfolios (obligations or quota policies regarding renewable generation), public competitive bidding for fixed renewable capacity, investment tax credits, production tax credits, net metering, tradable renewable energy certificates are currently not applied in Tunisia.<span style="color: rgb(255,0,0)">33</span>
 
  
<br>  
+
== Bilateral Energy Cooperation with Germany<br/> ==
  
== Clean Development Mechanism  ==
+
See also: [[German-Tunisian Energy Partnership|German-Tunisian Energy Partnership]] and [[Developing the Solar Energy Market in Tunisia (Project DMS)|DMS]]<br/>
  
Tunisia has ratified the Kyoto Protocol in 2003. The Tunisian DNA is located at the Directorate General for the Environment and Quality of Life of the Ministry of Environment and Sustainable Development. But although the institutional framework for CDM projects in Tunisia is generally in place now, personnel capacity, competency and expertise at the involved actors still need to be improved in some cases.<span style="color: rgb(255,0,0)">34</span> No specific legislation has been adopted for CDM projects. Another barrier for the use of CDM is that<br>no legal and fiscal framework for the transfer of Certified Emission Reductions (CERs) has been established so far. In addition, public institutions or state-owned enterprises have been the main project developers so far; the private sector has hardly been engaged, mainly due to a lack of information on the advantages of the CDM. In order to overcome these problems, the Ministry for Industry, Energy and SME together with ANME published a guide on CDM in the energy sector in 2009, providing background<br>information on the Kyoto Protocol, the CDM in general and on energy related CDM projects in particular.35 Relatively few consultants exist in Tunisia who are able to support CDM project developers, however, training measures are conducted by several institutions. A list of consultants can be found in GTAI’s publications.<span style="color: rgb(255,0,0)">36</span> In 2006, Tunisia announced ambitious plans to host CDM<br>projects; as of today, actual project development lags far behind. So far, Tunisia hosts only two CDM projects with Italy as the partner country. Both projects were registered in 2006 and are landfill gas recovery and flaring projects. However, there is one CDM project activity currently under validation in the field of renewable energies. In this case, not a single project is developed but a programme of activities (PoA) that bundles the installations of solar water heaters in Tunisian households under the PROSOL<br>programme.37 The above mentioned guide on CDM contains a list of projects with an approved Project Idea Note (PIN). Altogether,<br>these 76 projects account for emission reductions of 107 600 kt CO2 of which 7 445 are attributed to wind<br>projects and 13 714 to renewable energy projects in general. The wind projects, listed in table 9, together represent the installation of 198 MW.<br>  
+
<br/>
  
== International Donor Activities  ==
+
*[https://www.ptb.de/cms/en.html PTB] project "[[:File:PTB project Tunisia PV 95304 EN.pdf|Strengthening Quality Infrastructure for Photovoltaics]]" (English)
 +
*Projet PTB "[[:File:Projet PTB Tunisie PV 95304 FR.pdf|Renforcement de l'infrastructure qualité pour l'énergie photovoltaïque]]" (Français)
 +
*PTB project "[[:File:PTB_project_Maghreb_Solar_95313_EN.pdf|Strengthening Quality Infrastructure for Solar Thermal Energy]]" in the Maghreb countries
  
The UNDP runs several projects in the field of energy and environment. The project&nbsp;»Renforcement des capacités des Task Forces (IGCE et cogénération) pour la mise en oeuvre de la stratégie de maîtrise de l’énergie en Tunisie«&nbsp;with a Total budget of 786 976 US$ (2005 – 2008) in cooperation with ANME and GTZ with significant influence on the energy sector development. The African Development Bank Group realized two mayor projects in the Tunisian Energy sector. The&nbsp;»Projet d’assainissement, de restructuration, et développement des réseaux de distribution«&nbsp;to support distribution and electrification plans stated in 2002. In 2003 the bank launched a second project&nbsp;»Assainissement des réseaux de distribution d’électricité«&nbsp;with similar goals. The Global Environment Facility (GEF) a public private alliance providing grant for environmental projects is active in Tunisia in the field of renewable energies and especially wind energy. In 2001, the project&nbsp;»Promotion of increased use of wind energy in Tunisia«&nbsp;(both on- and off-grid wind energy) has been started with a budget of 1.1 mio €. In May 2009, another project was signed on&nbsp;»Private Sector Led Development of On-Grid Wind Power in Tunisia«.38 Since 1975, GTZ has been active in Tunisia on behalf of the German Government. The two priority areas for GTZ in Tunisia are economic promotion and environmental protection. The latter includes a programme on the promotion of renewable energies and energy efficiency. This programme aims at strengthening ANME´s role in the energy sector, promoting private sector involvement inter alia via Public-Private Partnerships (PPP) and developing instruments to promote and finance renewable energy and energy efficiency projects. In November 2003, UNDP decided<br>to implement a project with GEF assistance under the title&nbsp;»Development of On-Grid Wind Electricity in Tunisia for the 10th Plan«, which was designed to run for eight years. The project began in 2004 and is being executed in cooperation with GTZ. Within the framework of this project, which targets the large-scale exploitation of wind energy, it is planned that private investment of more than US$ 100 million should be funneled into the wind sector. The funds provided by GEF amount to US$ 10.25 million. The share of assistance contributed by GTZ within the project as a whole consists of site analysis, consultancy services to the Tunisian Government on matters relating to grid integration, tariff structuring and preparation of and backup support for the bidding procedure. In addition, GTZ aims at ensuring that a high quota of local value generation is achieved by providing technical assistance<br>to domestic manufacturers. Spanish, French and Japanese development agencies show interest or have invested in the Tunisian energy sector.39 40 The French Development Agency (AFD) is contributing financially to the PME program (quatrième programme de mise à niveau des entreprises – PME, see section 1.5). Another example is the co-funding of the Tunisian Wind Atlas by the Spanish development agency.
 
  
== Business climate  ==
+
= Further Information =
  
Currently the state-owned STEG operates and manages the only existing wind farm in Tunisia (Sidi Daoud). For further wind power development, the government is aiming at the private sector, particularly international investors. Foreign investments can be made without national holdings requirements. Private investment, however, is not permitted in all areas, or may require authorization. The banking system is described as weak, investment propensity in the private sector as low. The legal system is characterized<br>as being in need of reform.57 Trading between Tunisia and the EU has been facilitated by the Euro-Mediterranean customs union which came into force in January 2008 between Tunisia and the EU. An association treaty has been signed by Tunisia and the EU as a first step towards a Euro-Mediterranean free trade zone planned for 2010. Apart from that, Tunisia is conducting negotiations with the USA concerning a bilateral free trade area.58 For the yield of Tunisia’s wind energy this means Europe will become energy export destination (e.g. through the planned 400 kV offshore cable linking Tunesia with Italy). To improve the investment climate in 1996, the Tunisian government has launched the&nbsp;»Programme de Mise à Niveau«(PMN). This program includes subsidies for investments and tax reductions for industry and international cooperation projects (e. g. of the European Commission,<br>AFD, GTZ, KFW) to enhance their competitiveness. Decentralized projects are mentioned to be of special interest, which seems to suit wind farm developments. The access to further information on support structures eligible to wind energy developments can be through the&nbsp;»Agence Promotion de l´Industrie«, under the Ministry of Industry, Energy and PME. Prerequisites for an application are: presence in Tunisia for at least two years, potential for growth and sound pattern of finance. If approved by the&nbsp;»Bureau de Mise à Niveau«&nbsp;enterprises are supported by investment incentives of up to 25&nbsp;% of their project investments and up to 15 years of exemption from taxation. Further, the government is implementing a banking reform by establishing a new Investment Code. The main focus is the promotion of direct investments from abroad. Additionally, the government seeks to reduce bureaucratic hurdles in this context.59 Improved investment conditions and lower bureaucratic hurdles will increase the chance of further investments form Europe and elsewhere to harvest and trade the proven wind energy potentials. Education in the sector of renewable energy takes place in Tunisian institutes such as the Tunis International Centre for Environmental Technologies (CITET) and the Research<br>and Technology Center of energy (CRTEn). The CITET was founded in 1996 to promote environmental technologies. It is answerable to the Tunisian Ministry of the Environment. In addition to providing a range of advisory and training services it also offers laboratory and development capacity. A library and an extensive online presence serve the purpose of documenting and disseminating<br>information relating to environmental matters. The CITET is involved in numerous cooperation projects, including international projects. Together with the CITET and two other German partners, the GTZ is running the IHK / GTZ Company Pool on Environmental Technology in Tunis, which supports small and medium-sized European companies from the environmental technology sector in gaining access to the market in Tunisia and other Maghreb countries. The CRTEn was founded in 2005. It is part of the Borj-Cédria Technopole representing its energy department. At the CRTEn research, innovation and training activities are conducted in the field of energy technologies, including renewable energy. Currently there is no wind energy industry in Tunisia. However, the Canadian consulting company Hélimax compiled an economic study on possibilities of establishing such an industry in Tunisia, which also includes a training manual on wind energy and a baseline study for a CDM project in the wind sector.60
+
*[[Promotion of Renewable Energies and Energy Efficiency in Tunisia|Promotion of Renewable Energy and Energy Efficiency in Tunisia]]
  
<br>
+
[[Tunisia Energy Situation#toc|►Go to Top]]
  
Source: [https://dms.gtz.de/livelink-ger/livelink.exe/fetch/-61052196/54760847/57715462/57715391/gtz2007-en-energy-policy-framework-conditions-eletricity-markets-re-23-country-analyses.pdf?nodeid=58870241&vernum=-2 GTZ TERNA Country Analyses (2007)]
+
<br/>
  
<br>
+
= References =
  
= References  =
+
<references />
  
<references />
+
[[Tunisia Energy Situation#toc|►Go to Top]]
  
 
[[Category:Tunisia]]
 
[[Category:Tunisia]]
 +
[[Category:MENA_(Middle_East_and_North_Africa)]]

Latest revision as of 10:21, 11 September 2020

Tunisia
Flag of Tunisia.png
Location _______.png

Capital:

Tunis

Region:

Coordinates:

34.0000° N, 9.0000° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

163,610

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

12,200,431 (2023)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

29 (2023)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

48,529,595,417 (2023)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

3,977.70 (2023)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

100.00 (2022)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

36.20 (2014)

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

88.87 (2014)

Source: World Bank



Introduction

Tunisia is a small country located in Northern Africa sharing borders with Algeria and Libya. The country entails the Northern reaches of the Sahara desert and the Eastern end of the Atlas Mountains and has a Mediterranean coast. Therefore, the country has a bright diversity on climate and biosphere.

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Energy Situation

Since 1990, the Tunisian primary energy consumption has increased in a roughly linear way, with approximately 4,500 ktoe in 1990, 6,700 ktoe in 2000 and 8,300 ktoe in 2010 (without biomass). As shown in Figure 1, the sharpest increase is to be noticed in the gas sector, which represented 55 % of the primary energy supply in 2012. As a result, the share of oil, including crude oil and petroleum products, has slightly decreased. The share of coal and peat has always been minimal and now reached zero.  The amount of biofuel and waste slightly increased (58 PJ in 2011), and currently represents 15 % of the primary energy supply. In 2014, primary energy consumption was about 9,200 ktoe[1] (i.e. 107,000 GWh or 385 PJ), without biomass.

Figure 1: Primary Energy Consumption since 1990[2]

Primary En Consumption TUN.png

Energy Data

Primary Energy Consumption

Total Primary Energy Consumption in 2014[3]* (without biomass, PV, SWH, process heat, self-consumption of oil fields, consumption of natural gas pipeline compressor stations)

 

 

 

 

Energy Source

in ktoe

in GWh

in PJ

in %

Crude Oil and Oil Products (2014)*

4,232

49,218

177,185

46%

Natural Gas (2014)*

4,876

56,708

204,148

53%

Electricity from Renewables (2014)*

92

3,852

1,070

1%

SUBTOTAL (2014)*

9,200

106,996

385,186

100%

 

 

 

 

 

Biomass (2011)

1,390

 

58

 

Geothermal, Solar etc. (2011)

9

 

0.38

 

(*) Data not yet officially published

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Energy balance, import and export

Tunisia's energy production, consumption and import/export balance in 2012[4]

Crude Oil  (ktoe)

Natural Gas (ktoe)

Total Production

3,522

2,563

Imports

1,139

2,480

Exports

 -2,741

-0

Total consumption

1,946

5,043

% of net imported resources in the total consumption

69

49


As shown in Figure 2, the Tunisian energy situation has drastically changed in the last two decades. Resulting from the economic development, primary energy demand has risen in a significantly steeper way than production. Consumption nearly doubled within 20 years between 1992 and 2012 from 4,500 ktoe to 8,500 ktoe. Between 1990 and 2000, consumption increased at a rate of 6.2%/year. Between 2000 and 2005, demand grew by 4.6%/year and between 2005 and 2009, annual demand growth slowed to 3.7%, mainly due to energy efficiency measures[5].  In 2014, primary energy consumption was 9,200 ktoe (without biomass), of which 46% was provided by oil products, 53% was provided by natural gas and 1% by renewable energies[3].

Oil production decreased between 1980 and 2012 from 120,000 to 67,000 barrels per day. Gas production, however, increased from 20 billion cubic feet in the early 1980s to 68 billion cubic feet in 2012. An overall increase in domestic primary energy production from 5,400 ktoe in 1900 to 7,000 ktoe in 2012 could not follow the sharp rise in demand.

Hence the unbalanced consumption illustrated in Figure 2. Tunisia, a net energy exporter until 2000, has become a net importer. In 2014, 49% of natural gas consumption (2,300 ktoe) was covered by domestic production. The remaining 51% (2,400 ktoe) was imported from Algeria[6].

Figure 2: From a Net-Exporter to a Net-Importer[7]

TUN Net Importer.png
Becoming a net importer implies a rise in energy prices since the mid-2000s (natural gas is today 8 times more expensive than it was in 2000) and a weak national currency (Dinar, TND) (2010: 1.8 TND=1.0 €; 2012: 2.0 TND=1.0 €; 2015:2.2 TND=1.0 €) makes the imports more expensive. Thus, expenses for energy represented 13.7% of GDP in 2012 − with expenses on energy import representing 16.8% of the global imports[8].

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Subsidies

The energy sector is heavily subsidised in Tunisia. Subsidies for natural gas as well as electricity started a sharp increase in the early 2000s. In 2012, energy subsidies amounted to 5,600 million TND (3,100 million EUR), i.e. 20% of public budget or 9% of GDP. Whereas energy subsidies only represented 3% of GDP in 2005. This rise in subsidies is not sustainable for the state and has several negative effects on public spending such as a decreasing budget for public investments[9]. Subsidising procedures remain non-transparent. The subsidy system is composed of indirect and direct subsidies. Indirect subsidies are the difference between supply costs of crude oil and gas for the State, and the selling prices to the two public operators STIR for oil and STEG for natural gas. Direct subsidies are subsidies made ​​directly by the State to STIR and STEG in order to offset their deficits[6].  

As for electricity, average retail prices (0.14 TND/kWh in 2012) are significantly lower than average production costs for the State (0.26 TND/kWh in 2012). The discrepancies between average production cost and average retail price are even larger for natural gas[6].

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Renewable Energy

Currently, renewable energy plays a minor role in the energy supply.The use of solar energy for thermal purposes is widespread in Tunisia and can be regarded as a success story. Since its launch in 2005, the ANME program “PROSOL THERMIQUE”, meant to promote the installation of solar water heaters, has led to an installed capacity of 487,853 m2 in 2012[10].

Regarding grid-connected renewables, the total installed capacity of renewable energy was an estimated of 312 MW in early 2016 (245 MW of wind energy, 62 MW of hydropower and 25 MW of PV), that was 6% of the total capacity[3]. In terms of electricity production this meant 3% of this an annual production in 2013: 2.6% (357.8 GWh) from wind turbines and 0.4% (60.1 GWh) from hydropower[11].

There are two large wind parks in Tunisia, both operated by state utility STEG, one in the region of Bizerte in Metline and Kechabta  with a capacity of 190 MW operational since 2012; and one in the region of Sidi Daoud, with a capacity of 55 MW, built in 3 phases between 2000 and 2009[6].

 As for photovoltaics, there was a total capacity of 25 MW as of early 2016, mostly small-scale private installations most of whose capacity ranges between 1 kW and 10 kW. In low voltage, in the residential sector the capacities range from 1 kW to 17 kW and in the commercial sector capacities are between 10 and 30 kW. In medium voltage, capacities in commercial sector range between 25 and 100 kW[12]. As of early 2015, there were only three operational PV installations with a capacity of at least 100 kW: a 149 kWp installation in Sfax[13], a 211 kWp installation operated by the Tunisian potable water supply company SONEDE and a 100 kWp installation in the region of Korba[14], both connected to the medium voltage, and realized by Tunisian installer companies.

The first large scale solar power plant of a 10 MW capacity, co-financed by the German development bank KfW and the EU's Neighbourhood Investment Facility (NIF) and implemented by STEG, is due 2018 in Tozeur[15].

Regarding the off-grid use of renewable energies, 11,000 decentralised PV systems have been installed[13].


Electricity

Installed Capacity and Generation

The installed capacity was of 4,799 MW in 2014[1] ‒ with the biggest share (4,492 MW/94%) provided by natural gas fired thermal power stations. The 6% left are divided between hydroelectric power (62 MW as of 2014) and wind generating plants (245 MW as of 2014[16]). Electricity is generated almost exclusively from combustible fossil fuels: 93 % natural gas, 7 % heavy fuel with only a tiny share left to renewables (3% in 2013[11]).

In 2014, the state-owned company, STEG, remained the major electricity producer, supplying 86% of the demand, followed by an IPP, CPC (Carthage Power Company) which produced 10% of the consumed electricity. The last 4% are produced by small scale producers for their own needs (e.g. industries).  

 Installed power plant capacity in MW (excluding small scale PV)[3]

Type of Power Plant

2013

2014*

Share 2014 (%)

Thermal (steam) power plant

1,040

1,040

24

Combined-cycle gas turbine

789

1,209

28

Gas turbine

1,772

1,779

41

Hydropower

62

62

1

Wind power

245

245

6

STEG total

3,908

4,335

100

IPPs

471

471

-

Total capacity, national

4,379

4,806

-

(*)Data not yet officially published

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Consumption

The peak load in 2012 was 3 353 MW and in 2013, due to more favorable climatic conditions, 3 144 MW.

In Tunisia 46% of the electricity was consumed on the low voltage level, 45% on the medium voltage and 9% on the high voltage level.

Electricity consumption of individual sectors in 2013[17]

GWh

%

Industry (Medium and High Voltage)

4 909

34

Transport & communication (Medium and High Voltage)

311

2

Tourism (Medium and High Voltage)

567

4

Service (Medium and High Voltage)

891

6

Agricultural pump sets (Medium and High Voltage)

556

4

Pumping stations (water, sanitation service) (Medium and High Voltage)

563

4

Low voltage

6 521

45

'Total'1

14 380

100

1Total may not add up due to rounding.

The gas consumption has marked a steep increase (5,344 Ktep in 2013) and 72.5% of its production is used for electricity consumption, 7.1% for the industry sector and 20% for the residential and tertiary sectors.

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Grid

STEG controls the Tunisian grid and holds a monopoly on electricity transportation and distribution. The grid has three voltages: high (225 kV), medium (150 kV) and low (90 kV). 99.5% of the households have had an access to electricity since 2006.  

The transmission grid is connected to the Algerian grid and, on its Eastern end, to Libya. Regional grid synchronisation tests with the participation of Morocco, Algeria, Tunisia, Libya and Egypt have been carried out but failed so far due to frequent synchronization issues with the Egyptian grid. Furthermore, a 400 kV high voltage sea cable with a capacity of 1,000 MW binding North Africa to Europe via Tunisia and Italy is currently discussed[18].

Grid losses are primarily due to maintenance or other incidents. Along with the prolonging of the transmission grid, losses have risen: in 2012 it represented 2,735 GWh[19]. The growing economy of Tunisia and rise of living standards contributed to a significant increase in the electricity consumption leading to ever more often grid saturation. In addition, some power plants and facilities are out-dated and can no longer cope with the actual load of the network; hence, overload, losses and high voltage drops occur on a regular basis. To address these issues, the »Electricity Distribution Network Rehabilitation and Restructuring Project« has been launched, this should improve the reliability and safety of electricity distribution.

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Electricity Prices

Low voltage (Tarifs as of March 2015)

The Tunisian electricity tariff system is complex, subsidized and cross-subsidized. On the general low voltage, tariffs depend on the sector of the consumer (residential or non-residential) and the consumption per month in kWh. Tariffs are most heavily subsidized for households whose monthly consumption is below 50, 100 and 200 kWh. These households pay 0.075 TND [0.034 EUR], 0.108 TND [0.049 EUR] and 0.140 TND [0.064 EUR] for each kWh consumed. Households whose consumption surpasses 200 kWh per month have to pay 0.151 TND (0.069 €)/kWh for the first 200 kWh, 0.184 TND (0.084 €)/kWh for the following 100 kWh, 0.280 TND (0.13 €)/kWh for the following 200 kWh, and 0.350 TND (0.16 €) for each kWh above 500 kWh/month. Production costs are thus more than covered in the tranches 301-500.

Medium voltage (Tarifs as of March 2015)

There are three to four tariff slots depending on the sector and on the day time. Prices range from 0.088 TND/kWh (0.040 €) to 0.238 TND/kWh (0.109 €). The subsidies no longer apply to cement producers which have paid electricity to its real cost since 2014 (cheapest slot: 0.129 TND (0.059 €)/kWh, most expensive slot 0.311 TND (0.142€)/kWh).

High voltage (Tarifs as of March 2015

This represents a tiny share of the market, with only a handsome of subscribers. There are four tariff slots and prices range between 0.111 TND (0.051€)/kWh and 0.233 TND (0.106€)/kWh).


Energy Policy

General Information

Exploration and exploitation of conventional and unconventional fossil resources are carried outin order to address the demand and limit importations. Generally speaking, diversity should help protecting Tunisia from the international prices volatility and reduce its import dependency.

In order to reduce its dependency from Algerian gas, Tunisia needs to diversify its electric mix and extend its interconnections. A gas interconnection with Italy already exists (“Gazoduc”), currently being used to transport Algerian gas to Europe. However this interconnection may be used for imports in future. An electric interconnection with Italy with a 400 kV submarine cable is currently being considered. It may be used for import and export later on: complementary daily and annual production and consumption profiles of North Africa and Europe can create synergies.

Furthermore, there is a strong need for institutional and budget reforms in the energy sector since the current situation drastically differs from the one 20 years ago. Some of its aspects such as subsidies have become a burden hindering a further development of the whole sector. In November 2014, the Industry Minister M. Ben Naceur called for drastic cuts for the year 2015. Subsidies should decrease from 1.3 billion Euros (2.7 billion TND) to 0.9 billion Euros (1.96 billion TND) in order to use the saved money in investment projects[20]. In 2014, energy prices were raised by approximately 10% in total in order to reduce subsidies. By June 2014, electricity price subsidies for cement producers’ were completely phased out.

Forecasts from the ANME expected the consumption to double by 2030 without implementation of a comprehensive action, therefore energy efficiency should be further strengthened. Measures since 2000 have brought results: Tunisia has reduced its energy intensity by 20%[21].

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Renewable Energy Policy

 For more info, see Analysis of the Regulatory Framework for Renewable Energy in Tunisia

A new law on renewable energies was adopted by Parliament in May 2015. The objective of this law is to promote private investment in renewables to contribute to the 30/30 objective of the Tunisian Solar Plan. The law foresees three project development regimes: (1) self-consumption, (2a) complete sale of electricity to the utility STEG (feed-in tarifs, projects under 10 MW for PV and 30 MW for wind), (2b) complete sale of electricity to the utility STEG (tenders, projects above 10 MW for PV and 30 MW for wind), (3) electricity export. The implementation bylaws of the RE law were approved by the Council of Ministers in July 2016. As of August 2016, the new regulatory framework is not yet being implemented. 

The Tunisian Solar Plan, a renewable energy development plan elaborated by the ANME but not officially adopted by parliament or government, foresees a 30% share of renewables in the electricity mix by 2030. This corresponds to an additional totally capacity of 3 GW and an overall investment of 4.75 billion euro[16]. Figure 3 shows the development goals by technology.The Tunisian Solar Plan was updated in 2014, and a new update is planned for 2015.

Figure 3: Foreseen RE Installed Capacity in Tunisia in 2020 and 2030[22]

Installed Capacity RE in TUN.png
Installed Capacity RE in TUN.png


The law No. 2004-72 on the rational use of energy defines wise use of energy as a national priority and as the most important element of a sustainable development policy. It states three principal goals: energy saving, renewable energy promotion and creation of new forms of energy, that favour costs’ reduction as well as the National economy and the environment.

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Energy Efficiency Policy

The National Energy Conservation Action Plan[23] consists of three phases: (1) awareness raising, first concrete and grass-root actions were taken under two programs, (2000-2013) that contributed to an annual decrease of 2% in energy intensity; (2) continued implementation and voluntary investment via the mobilisation of industry, construction and transport (audits, cogeneration, lighting, household appliances, buildings, transport); (3) implementation of large scale projects in order to reach the 30-30 goals ‒ 30% of electricity shall be produced by renewable sources by 2030 ‒ (2020-2030).

The Action Plan also foresees an independent regulator in the electricity market.

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Key Actors in the Energy Sector

Governmental Bodies and Agencies

DGE (Direction Générale de l’Energie, Directorate-General for Energy) is a sub-department of the Ministry of Industry, Energy and Mines. It is designed to conceive, coordinate and implement the national energy policy and to draft energy action plans and energy management programs.

STEG (Société Tunisienne de l’Electricité et du Gaz, Tunisian Company for Electricity and Gas) is the national energy producer, TSO and supplier. The STEG was created by law 62-8 in 1962[24].

ETAP (Entreprise Tunisienne des Activités Pétrolières, Tunisian Refining Industry Company). Created in 1972, this stated-owned company plans oil and gas explorations and manage national gas and petroleum wealth[25].

ANME (Agence Nationale de la Maîtrise de l’Energie, National Agency for Energy Management). Created in 1985, this agency specialised in energy management supports the Industry Ministry on energy transition[26].

AGIL (Société Nationale de Distribution des Pétroles, National Company of Oil Distribution) shares the oil distribution market with some private companies (s.a. Total, Shell, BP, etc.)[27].

Fond de Tranisition Energétique (Energy Transition Fund, FTE), until 2014 Fond National de Maîtrise de l’Energie (National Fund for Energy Management), created in 2005, it helps ANME to provide renewable projects with a financial support (among other subsidies)

STEG Energies Renouvelables, created in 2010, this is a branch of the Tunisian Company for Electricity and Gas fully devoted to renewable energies[28].

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Utilities

STEG is the national utility, it holds a monopoly.


Others

Currently only two IPPs generate electricity:

  1. Carthage Power Company (CPC): Radès II Power Station (natural gas fired plant, total capacity 480 MW) started operation in 2002 under the terms of a build own operate (BOO) agreement and by 2010 was responsible for 21% of national production[29].
  2. Societe d’Electricite d’El Bibane (SEEB): Tunisia’s second IPP, two 13.5 MW gas turbines that went on line in 2003[30].


Energy Cooperation

Bilateral Energy Cooperation with Germany

See also: German-Tunisian Energy Partnership and DMS



Further Information

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References

  1. 1.0 1.1 Bureau des statistiques, Ministère de l’Industrie.
  2. ANME Maîtrise de l'Energie en Tunisie - Chiffres Clés, p19.
  3. 3.0 3.1 3.2 3.3 Bureau des statistiques, Ministère de l‘Industrie.
  4. http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=TUNISIA&product=Balances
  5. http://www.iisd.org/gsi/sites/default/files/fossil-fuel-subsidies-renewable-energy-middle-east-north-african-countri%20%20%20.pdf
  6. 6.0 6.1 6.2 6.3 Ibid.
  7. ANME, Maîtrise de l'Energie en Tunisie - Chiffres Clés, p18.
  8. http://www.leaders.com.tn/article/11353-la-tunisie-sera-t-elle-capable-d-arreter-l-hemorragie-des-subventions
  9. Présentation Déjeuner-Débat du 24 Mars 2014, Rafik Missaoui.
  10. GIZ, Le marché solaire thermique en Tunisie. Christopher Gross, Situation actuelle et perspectives (2013).
  11. 11.0 11.1 http://www.oitsfax.org/files/AApresentationHDR20140323.pdf
  12. GIZ, RE-ACTIVATE.
  13. 13.0 13.1 GIZ, Enabling PV.
  14. https://energypedia.info/images/a/a2/COMPTE_RENDU_Modes_de_Financement.pdf
  15. GIZ, Secretariat of the German-Tunisian Energy Partnership.
  16. 16.0 16.1 http://www.anme.nat.tn/fileadmin/user1/doc/DEP/Rapport_final__PST.pdf
  17. STEG, Rapport annuel 2013.
  18. http://www.terna.it/default/home_en/the_company/about_terna/terna_group_abroad/growth_abroad/elmed_project.aspx
  19. http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=TUNISIA&product=ElectricityandHeat
  20. http://directinfo.webmanagercenter.com/2014/11/30/tunisie-une-augmentation-attendue-de-7-des-prix-de-lelectricite-et-du-gaz-en-2015/
  21. ANME, Stratégie Nationale de maîtrise de l‘énergie. Objectifs, moyens et enjeux.
  22. ANME, Stratégie nationale de maîtrise de l'énergie. Objectifs, moyens et enjeux. p. 23
  23. http://maghrenov.eu/file/download/2878/Strategie+Nationale+de+Maitrise+de+l%27Energie_web.pdf
  24. https://www.steg.com.tn/fr/index.html
  25. http://www.etap.com.tn/
  26. www.anme.nat.tn/
  27. http://www.agil.com.tn/
  28. http://www.steg-er.com.tn/
  29. http://www.carthagepower.com.tn/en/rades.php
  30. http://www.industcards.com/cc-tunisia.htm

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