National Energy Efficiency and Renewable Energy Programme 2008-2011

The quadrennial plan to promote Energy Efficiency in Tunisia, implemented since January 2008, aims to cut down 20% of national energy consumption by 2011. The plan seeks to increase the share of renewable energies in the national energy mix to reach 4% of primary energy supply and 10% of total electricity installed capacity by 2011.To meet this aim, the plan focuses on the deployment of renewable energy in the agricultural sector and in rural areas, promotes the development of water pumping and desalination from solar PV and wind energy, as well as rural electrification. Regional Committees for Agricultural Development are to replace any diesel-sourced pumping equipment by renewable energies-sourced equipments.The plan also focuses on biogas production for domestic and industrial uses. Investments in all three activities - water pumping and desalination, rural electrification and biogas production - are entitled to a 40% of initial investment premium, with a ceiling price of TND 20 000. Large industrial and agricultural companies producing biogas and connected to the national grid are entitled a Premium of 20% of initial investment, up to a maximum of TND 100 000.The plan also provides financial support to research and development projects in the field of renewable energy, focusing mainly on: Solar air conditioning, biomass water heating, solar desalination and biogas production.The Plan also seeks to rationalise funding and subsidies coming from different sources, namely the National Fund for Energy Efficiency (FNME) and the National Fund for the Development of Industrial Competition.Within the Plan it was decided that income derived from the Clean Development Mechanisms will be attributed to the National Fund for Energy Efficiency to widen its funding capacity.

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