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Provision of Technical Support/Services for an Economical A project financed by the Ministry of Foreign Affairs of Denmark Provision of Technical Support/Services for an Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for Renewable Energy and Energy Efficiency Country Report Tunisia January 2010 revised May 2010 Norsk-Data-Str. 1 Döppersberg 19 61352 Bad Homburg, Germany 42103 Wuppertal, Germany Tel: +49-6172-9460-103, Fax. +49-6172-9460-20 Tel: +49-202-2492-0, Fax: +49-202-2492-108 eMail: [email protected] eMail: [email protected] http://www.mvv-decon.com http://www.wupperinst.org Table of Contents Page 1. Project Synopsis 1 2. Summary of Energy Situation in Tunisia 3 3. Comparison of Tunisian Practice with International Practice in Energy Efficiency 4 3.1 Strategy 4 3.2 Legal Reform 5 3.3 Price Reform 7 3.4 An Agency 8 3.5 Standards and /or Labels 10 3.6 Financial Incentives 12 3.7 Obligations 14 3.8 Audits and the Promotion of ESCOs 16 3.9 Transport and Spatial Planning 17 3.10 Dissemination of Information 18 4. Comparison of Tunisian Practice with International Practice in Renewable Energy 19 4.1 Targets and Strategy 19 4.2 Legal Reform 21 4.3 An Agency 23 4.4 Standards and /or Labels 23 4.5 Financial Incentives (Capital Support) 23 4.6 Feed-in Tariffs and Obligations 26 4.7 CDM Finance 27 4.8 Information 28 4.9 Industrial Policy 29 5. Case Studies 30 5.1 Case Study 1 - Grid-connected PV in Buildings 30 5.1.1 Background and Context 30 5.1.1.1 Programmes for Photovoltaic Electricity Generation in Tunisia 30 5.1.1.2 Scope of the Case Study 30 5.1.2 Evidence-Based Policy Making 30 5.1.2.1 Alternative Forms of Intervention 31 5.1.2.2 Base Case 32 5.1.2.3 Impacts 32 5.1.2.4 Consultation 32 5.1.2.5 Compliance 32 5.1.3 Theory-Based Evaluation 32 5.1.3.1 Methodology 32 5.1.3.2 Indicators 33 5.1.3.3 Behavioural Matrix 33 5.1.4 Cost-Benefit Assessment 36 5.1.4.1 Methodology Applied 36 5.1.4.2 Assumptions for Photovoltaic Use in Tunisia 36 5.1.4.3 Opportunity Costs for Electricity Generation Using Coal 37 5.1.4.4 Economic Assessment 39 Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for RE and EE: Country Report Tunisia Tunisia.doc Table of Contents Page 5.1.4.5 Financial Assessment 44 5.1.5 Conclusion 46 5.1.5.1 Methodology 46 5.1.5.2 Promotion Instrument 46 5.2 Case Study 2 - Mandatory Audits for Large Consumers 47 5.2.1 Background and Context 47 5.2.1.1 Scope of the Case Studies 47 5.2.2 Background to Mandatory Audits in Tunisia 47 5.2.2.1 Scope of the Case Study 47 5.2.3 Evidence-based Policy Making 47 5.2.3.1 Step-wise Procedure 47 5.2.3.2 Alternative Forms of Intervention 48 5.2.3.3 Base Case 49 5.2.3.4 Impacts 49 5.2.3.5 Consultation 49 5.2.3.6 Compliance 49 5.2.4 Theory-based Evaluation 50 5.2.4.1 Methodology 50 5.2.4.2 Indicators 50 5.2.4.3 Behavioural matrix 50 5.2.5 Cost-Benefit Assessment 55 5.2.5.1 Methodology Applied 55 5.2.5.2 Assumptions and Data Base 56 5.2.5.3 Programme and Investment Appraisal 57 5.2.6 Conclusion 62 5.2.6.1 Methodology 62 5.2.6.2 Instrument of Mandatory Audits 62 6. Institutional Reform in Tunisia – Some Possibilities 63 List of Annexes Annex 1: Mission Report Annex 2: List of Stakeholders Annex 3: Seminar Programme Annex 4: Presentation on Methodology Annex 5: Energy Situation in Tunisia List of Figures Figure 1: Historical Trends in Coal Prices Figure 2: Forecasts of Crude Prices to 2030 (DOE/IEA) Figure 3: Central Forecast for Coal Prices ($2007/GJ) Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for RE and EE: Country Report Tunisia Tunisia.doc List of Tables Table 1 High voltage tariffs Table 2 Schedule of insulation foreseen in PROMO-ISOL (number of buildings) Table 3 Origin of renewable energy contribution by 2011 (ktoe) Table 4 Electrical capacity from renewables (entries in MW) Table 5 Breakdown of CDM project portfolio in energy sector Table 6: Behavioural Matrix for Instruments to Support Grid-connected PV for Buildings Table 7: Key-data for PV Electricity Generation Table 8: Coal Based Electricity Generation Table 9: Levelised Economic Benefit / Loss for PV Electricity Generation Table 10: Levelised Economic Benefit / Loss for PV Electricity Generation Table 11: Case 2 - Economic Assessment of PV Electricity Generation - Table 12: Case 2 - Economic Assessment of PV Electricity Generation Table 13: Case 3 - Economic Assessment of PV Electricity Generation Table 14: Promotion of PV Use in Tunisia Table 15: Financial Assessment - Investment 4,000 USD / kW Table 16: Behavioural Matrix for Mandatory Audits Table 17 Behavioural matrix for associated financial incentives Table 18: Data Base for the Case Study Table 19: Result of the Programme and Investment Appraisal Table 20: Result of the Economic Programme and Investment Appraisal Table 21: Result the Programme Impacts upon the Government Budget Table 22: Result the Financial Assessment for the EE Investor List of Acronyms AFD Agence Francaise de Development ANME Agence Nationale pour la Maitrise de l’Energie BRT Bus Rapid Transit CCGT Combined Cycle Gas Turbine CDM Clean Development Mechanism CER Certified Emission Reduction CFL Compact Fluorescent Lamp CNG Compressed Natural Gas CPA CDM Programme Activity CSP Concentrated Solar Power CTF Clean Technology Fund CTMCCV Centre technique des matériaux de construction de la céramique et du verre DANIDA Danish International Development Agency DSM Demand Side Management DNA Designated National Authority EBPM Evidence Based Policy Making EE Energy Efficiency Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for RE and EE: Country Report Tunisia Tunisia.doc EHV Extra high voltage EIA Energy Information Agency EPC Energy Performance Contract ESCO Energy Service Company ETAP Tunisian National Oil Company EU European Union FNME National Fund for Energy g gram GEF Global Environment Fund GHG Green House Gas GJ Giga Joule GWh Giga Watt hours HV High Voltage IBRD International Bank for Reconstruction and Development (Worldbank) IDA International Development Agency IEA International Energy Agency IISD International Institute for Sustainable Development INNORPI National Institute for Standardisation and Industrial Property IPP Independent Power Producer JICA Japanese International Cooperation Agency kWh kilo Watt hours LEED Leadership in Environmental and Energy Design LNG Liquefied Natural Gas LPG Liquefied Petroleum Gas LRT Light Rail Transit LV Low Voltage MEDD Ministry of Environment and Sustainable Development MED-EMIP Euro-Mediterranean Energy Market Integration Project MED-ENEC Euro-Med Project on Energy Efficiency in the Construction Sector MENA Middle East and North Africa MMBTU Million British Thermal Units MEPS Minimum Energy Performance Standards MIEPME Ministry of Industry, Energy and Small and Medium Enterprises MV Medium Voltage MW Megawatt NET PV Net Present Value NGO Non-Governmental Organisation OCGT open cycle gas turbine OECD Organisation for Economic Cooperation and Development PIN Project Idea Note PoA Programme of Activities PPA Power Purchase Agreement PSA Production Sharing Agreement RCREEE Regional Centre for Renewable Energy and Energy Efficiency RE Renewable Energy SWH Solar Water Heater STEG Société Tunisienne de l'Electricité Energétique STIR Societé Tunisienne des Industries de Raffinage TBE Theory Based Evaluation Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for RE and EE: Country Report Tunisia Tunisia.doc toe tons of oil equivalent UNDP United Nation Development Program USAID United States Agency for International Development Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for RE and EE: Country Report Tunisia Tunisia.doc - 1 - 1. Project Synopsis The "Regional Centre for Renewable Energies and Energy Efficiency (RCREEE)" was formally estab- lished June 25, 2008 through the signing of the "Cairo Declaration of Intentions on Establishment of a Regional Centre for Renewable Energies and Energy Efficiency (RCREEE)" by representatives of its member states: Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Palestine, Syria, Tunisia and Yemen. The overall objective of RCREEE is, through its interventions, to achieve: a) rapid implementation of cost-effective policies and instruments for the increased penetration of re- newable energy (RE) and energy efficiency (EE) technologies and practices in member countries; and b) increased market shares of companies and plants located in MENA-countries on the markets for technologies and services related to RE and EE in the MENA and EU regions. For the first five years of operation, RCREEE receives financial support from the Governments of Egypt, Germany and Denmark. The European Commission (EC) supports RCREEE through two re- gional programs: "MED-EMIP" and Phase II of "MED-ENEC". Member countries will contribute finan- cially by increasingly co-financing the costs of the participation of national officials in RCREEE semi- nars and workshops. The present project is the first project support to RCREEE from the Danish Government. It is part of RCREEE's overall effort of providing member state administrations with better information and new planning tools and processes. It supports RECREEE in the development of a website which offers ac- cess to a complete subject-ordered list of member state RE&EE laws and regulations, reviewed policy documents, selected background and evaluation reports deemed to represent state-of-the art high quality analytical work as well as discussion blogs on topics deemed to be of general interest for RCREEE governments.
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