Background

Renewable energy plays a small role in Tunisia's total energy supply. Apart from centralised electricity generation from hydropower, the use of renewable energy to produce electricity is at an early stage.

Yet the Government of Tunisia has ambitious goals for the renewable energy sector. Direct financial incentives and tax incentives (including exoneration from customs duties) are the cornerstone of the incentives framework. Investment and expansion are required to develop the grid to meet solar and wind targets. Interconnections with Algeria, Libya and European countries are currently being planned.

Access to finance is a major barrier. Tunisia is undergoing major subsidy reform, and direct and indirect energy subsidies grew to TD 5.3 billion in 2012 (ANME).

Policy Framework

Legal framework in place

• Law No. 2004-72 on the rational use of energy (2004) defines the sensible use of energy as a national priority and states three principal goals: energy savings, promotion of renewable energy and substitution of forms of energy previously used

• Law 2005-82 and Decree 2005-2234 on Energy (2005)

- National Agency for Energy Management (Agence Nationale pour la Maîtrise de l'Énergie - ANME) and National Fund for Energy Management (Fonds National pour la Maîtrise de l'Énergie - FNME): set up to finance RE and EE projects

- PROSOL Programme: incentives for residential solar water heaters

• National Energy Efficiency and Renewable Energy Programme (2008-2011)

• Law 2009-7 on Energy Efficiency and Renewable Energy (2009): excess electricity can be sold to STEG (net-metering policy for small-scale grid connected renewable energy projects which allows feeding excess electricity to the grid)

• Tunisian Solar Plan (Plan Solaire Tunisien 2010-2016)

Target Setting

• 4% of electricity generation (2011), 11% (2016), 25% (2030)

- 330 MW of wind capacity

- 15 MW of solar PV capacity (2011)

- 1000 MW of RE capacity (2016)

- 4700 MW of RE capacity (2030)

Project Pipeline

Regarding grid-connected power plants, the focus lies on wind energy, although use of solar energy for thermal purposes is gaining importance. In 2011, 62 MW of hydropower and 53 MW of wind power were installed. Regarding off-grid use of renewable energies, 11,000 decentralised PV systems have been installed for rural electrification.

• TuNur Solar Power Project