The Tunisian Private Sector Energy Transition Support Programme (Power Tunisia) will provide subsidies and targeted technical assistance to private companies so as to promote their green transition thanks to two agreements signed. These agreements were signed on Wednesday during a seminar organised by Project Manager of Power Tunisia Craig Vandevelde, President of the National Photovoltaic Trade Union Chamber (CSPV) under the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA) Ali Kanzari and President of the Tunisia Green Building Council (TGBC) Mounir Bahri. They provide for the development of innovative solutions to ensure the availability of clean energy for households, agricultural businesses, commercial establishments, industrial facilities and other institutions. They will also enable the joint development of programmes and campaigns to promote energy efficiency practices as well as raise awareness of the importance of energy conservation. Power Tunisia, which aims to accelerate the adoption of renewable energy and energy efficiency solutions by Tunisian companies, is funded by the United States Agency for International Development (USAID). This project will build the capacity of key actors to better prepare, implement and manage the transition to clean energy. The project aims to increase the deployment of 70 Megawatts of RE and the reduction of one million metric tonnes per year of CO2 emissions, said Deputy Project Manager of Power Tunisia Sam Losow. It will enable the raising of 40 million dollars for investments in clean energies, in addition to the support which will be offered to more than 1,750 Tunisian companies, he added. The programme is destined for big enterprises (2 million dollars), medium-sized enterprises (20 thousand to 2 million dollars) and small-sized enterprises (less than 20 thousand dollars) projects, he explained. Power Tunisia should collaborate with the private sector (companies, developers and experts), energy consumers (industrial companies and residential sector …), and the financial sector including commercial banks and microfinance institutions, in addition to donor organizations, Losow added. He pointed out that partners interested in Power Tunisia are invited to submit their applications via the programme’s electronic portal, adding that a pre-selection of proposals will be made through a rigorous evaluation process based on well-defined criteria. Power Tunisia is committed to providing appropriate funding and technical assistance so as to consolidate the successful implementation of the project, he said. Technical Director of Renewable Energy at Power Tunisia Walid Bessrour recalled that 97% of Tunisian electricity is produced from natural gas, adding that 70% of this gas is imported from Algeria. He stressed the need to develop renewable energy given the availability of significant natural resources and the technological maturity Tunisia has. Referring to the question of costs, Bessrour indicated that the costs of producing electricity from renewable energy are falling and remain lower (without subsidies) than the costs of producing from natural gas (with subsidies). With annual growth in electricity consumption of 4% to 5%, the rise in natural gas prices on the one hand and the depreciation of the Tunisian Dinar on the other hand, the energy subsidy has become increasingly costly and therefore difficult to sustain, posing tax challenges and hampering Tunisia’s clean energy transition, according to USAID. For the Agency, it is essential that the private sector invests fully in energy efficiency solutions and renewable energies. Ahead of the adoption of such measures, Tunisian companies will not only be able to reduce their energy bills but also increase their competitiveness and profitability, while complying with future international environmental regulations, knowing that the Carbon Border Adjustment Mechanism (MACF) of Europe will come into force from 2026. However, from October 1, 2023, Tunisian companies operating in the steel, cement, fertilizer, aluminium and electricity production sectors and exporting to Europe will have to declare their carbon emissions, without paying them, the same source said. From 2026, they will have to obtain carbon certificates or pay financial adjustments, USAID said.
Source: Agence Tunis Afrique Presse