Rafik MISSAOUI on behalf of

Mohamed Ali Safi - ANME

Case study: Industry sector in Tunisia

Enabling Policies for Financing Energy Efficiency Investments

14 – 15 April 2014

Content

Tunisian industrial sector characteristics

Industry EE policy evaluation

EE policy implementation instruments

Perspectives

IAA11%

IMCCV6%

IME14%

IC6%

ITHC14%

ID8%

INM41%

Total Industrie = 35%

Structure de la valeur ajoutée de l'industrie

Tunisian industrial sector characteristics Economic issues

6000 Companies

35% du GDP

80% Exports of goods and services

500 thousand of direct jobs

Structure of Value Added

All industry : 35%

Industrie

Transport

Résidentiel

Tertiaire

Agriculture

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

ktep

41%

6 %

11 %

16 %

31 %

36 %

7 %

8 %

14 %

30 %

Source : ONE

- 4 -

2.3% Growth per year

Tunisian industrial sector characteristics Energy situation

IMCCV

61%

IAA

9%

ICH

12%

IME

4%

ID

10%

ITHC

4%

Energy Consumption Structure in the Industrial Sector

2000 ktoe

Energy Efficiency Program in Industrial Sector

Tunisian industrial sector characteristics Energy situation

- 6 -

Industry EE policy evaluation Energy Intensity

Industrie

45%

Tertiaire / Residentiel

40%

Transport 5%

Agriculture 0%

Electricité renouvelable

5%

3500 ktoe

- 7 -

Audits & Contrats

Programmes 93%

Cogénération

7%

Eolien

autoproducteurs

0%

1600 ktoe

Industrial Energy Savings achieved over the

period 2005-2011

Energy Savings achieved over the

period 2005-2011

Industry EE policy evaluation Energy saving

65

11 25

80

21 25

44

26

0

10

20

30

40

50

60

70

80

90

Investment in (MTND)

MDT

2005 2006 2007 2008 2009 2010 2004 2011

- 8

Total EE Investment = 300 MUS$

Average pay back period~ 2 years

Programme d‘Efficacité Énergétique dans le secteur Industriel

Industry EE policy evaluation Impacts

- 9 -

Institutional instrument • ANME • National Fund for Energy Conservation • Energy Auditors, ESCOs, etc.

Regulatory instruments • Mandatory Periodic Energy Audit • Mandatory Energy audit for new project

incentive Instruments • FNME Subsidy • Tax incentives

EE policy implementation instruments

Technical Support

International cooperation

Mandatory periodic Energy audits

Industrial companies consuming more than 800 toe / year

Target 320 companies

Mandatory Energy audits for new projects

Industrial new projects consuming more than 800 toe /year: ANME permission

Industrial new projects consuming more than 7000 toe /year : Authorization from the minister in charge of energy

Energy Efficiency Program in Industrial Sector

EE policy implementation instruments Regulatory instrument

Subsidies for energy audits:

70% of the cost of the audit with a limit of 30.000 DT

Subsidies for EE investment:

Immatériel Investissement : 70% of the cost with a limit of 70.000 DT

Matériel Investissement : 20% of the cost with a limit depending on the energy consumption

less than 4000 toe: 100.000 DT

between 4000 and 7000 toe: 200.000 DT

more than7000 toe: 250.000 DT

Energy Efficiency Program in Industrial Sector

EE policy implementation instruments Incentive instrument

Specific Framework for the promotion of cogeneration

20% subsidy for cogeneration investment with a maximum of 500.000 dinars per project.

Obligation for the utility company STEG to buy the excess of electricity produced by cogeneration plant.

Third part access to STEG transmission Network.

An incentive purchase price for the excess of electricity sold to the grid

Prix Jour : 0,2401 x Prix Gaz/tep + 16 (millimes)

Prix Pointe : 0,3110 x Prix Gaz/tep + 60 (millimes)

Prix Soir : 0,3039 x Prix Gaz/tep + 40 (millimes)

Prix Nuit : 0,2179 x Prix Gaz/tep (millimes)

Energy Efficiency Program in Industrial Sector

EE policy implementation instruments Incentive instrument

Awareness and assistance to industries on identifying and

implementing EE actions plan.

Assistance to industries on the verification, evaluation and monitoring

of the implemented EE projects.

Assistance to industries on implementing Energy Management

System.

Awareness to commercial banks to finance EE projects in industrial

companies.

Energy Efficiency Program in Industrial Sector

EE policy implementation instruments Technical assistance

Energy Efficiency Industry program (GEF) : 7 M$ Credit Line Environment AFD: 40 M€

A loan from AFD, soft rate through an EU subsidy 3 banks partners: Cogeneration, Energy Efficiency and Renewable

Energies Credit line World Bank: 40 MUS$

A long term loan from the world bank with the

guarantee from the Government of Tunisia 2 banks partners Cogeneration and Energy Efficiency in industries

Programme d‘Efficacité Énergétique dans le secteur Industriel - 14 -

EE policy implementation instruments International cooperation

Economies (ktep) 2013 2014 2015 2016 TOTAL

Industrie 170,3 303,1 448,1 599,2 1 520,7

Résidentiel et Tertiaire 58,9 133,5 226,1 308,8 727,3

Transport 93,2 129,4 298,1 336,9 857,6

Actions Agriculture et pêche 0,3 1,3 2,3 2,6 6,5

Total EE 322,7 567,3 974,6 1 247,5 3 112,2

Objective : Energy Saving of 3 Mtoe with 50% in Industry

Perspectives Scaling up EE in Industry

EE action plan 2013-2016

- 16 -

Better mobilizing the CHP potential : regulatory framework, awareness of industries ...

Explore new solutions for EE in the industry:

Measures focusing on Utilities, Process optimization,

Best available technologies ...

Strengthen and improve the EE services for customers:

Coaching

Guarantee of results

Establish bottom up Energy Efficiency Information System for Industry

Promote the progressive integration of EE into the overall management system of companies : ISO 50001 standard

Perspectives Scaling up EE in Industry

Thanks