a) A real development opportunity for the Tunisian renewable energy sector?
Regarding human resources and skills development, Tunisia is implementing a training scheme in the energy sector, which has been adapted to renewable energies. To this end, academic and professional programmes have been designed, provided by public and private universities, including engineering schools. The National Agency for Energy Management (ANME) has also started offering training and certification programmes. These efforts have led to the development of human resources that are capable of providing companies with the skills required to help implement national renewable energy programmes, with greater ‘competitiveness’ (i.e. more cheaply). However, local skills and expertise are insufficient to enable local enterprises to conceive, carry out and maintain large-scale wind and solar power plant projects. In addition, the stagnation of the wind farm at Bizerte since 2012 has led to the disintegration of previously acquired expertise.44 In parallel, a number of operators have emerged that give substance and structure to the renewable energies sector that is being developed: government institutions, manufacturers and suppliers of equipment, installation and maintenance companies, design offices, etc. Also, building on its prior industrial experience, Tunisia has the capacity to develop partnerships with foreign manufacturers to produce renewable energies equipment. Indeed, in regard to PV, national firms are engaged in assembling some modules imported from China, Germany, Japan, Italy, Spain and France.
In the case of wind turbines, there is strong potential for industrial integration: a Tunisian private company, SOCOMENIN45 – which originally specialized in metal construction – is producing wind turbine towers, and local industry is also capable of manufacturing turbine components in the mechanic, electric and electronic industrial sectors, including by adapting the production line where appropriate. In addition, related logistics, transportation, construction, exploitation and maintenance activities can all be carried out by domestic enterprises. However, despite these advantages, the Tunisian renewable energy manufacturing sector remains unable to support the development of major projects. Tunisia lacks certain raw materials and intermediate technologies that are essential to the development of such projects. These include silica, PV cells, electrical wires, alternators for wind turbines and wind turbine controllers.46 Equipment and intermediate technologies which are not produced locally must be imported, resulting in a dependency on foreign suppliers. In fact, the reality is that this sector has thus far grown mostly thanks to residential PV installation programmes and 90 per cent of Tunisian renewable energy sector companies work in the PV sub-sector. As a consequence, the market is mostly developed in the area of PV installation. According to the preliminary findings of a 2019 GIZ survey, out of 150 enterprises in the sector, more than 85 per cent were installers, a third were suppliers of PV components, and 20 were design offices, while there were only two project developers, two PV panels manufacturers and one training office. Also, when we look at calls for proposals and calls for tenders related to renewable energy authorizations and concessions in the period 2017 to 2019, we find that development corporations were only just emerging at this time.47
In addition, in spite of the existence of some national actors, Tunisia’s willingness to attract foreign investors tends to exclude local companies and Tunisian developers: for instance, the government prioritizes foreign companies with a background in developing projects of the same scale with the same technology.48 Indeed, the selection of projects is based on the prior experience of the developer or its subcontractors, and on the consistency and feasibility of the project, which de facto gives preference to foreign investors from countries that are leading the way on the development of renewable energy projects and which have stronger financial resources.49
Under the authorization regime (10MW projects), out of the 22 projects which have benefited from an agreement in principle after the three rounds of calls for tenders launched between 2017 and 2019, only half have Tunisian project leaders and only four projects are exclusively led by Tunisian firms. By comparison, five projects exclusively involve to French firms and three to German ones.50
As regards concessions for solar energy production, all five projects (for a total of 500MW) are awarded to foreign firms. The Norwegian company SCATEC Solar has won tenders for three projects, for a total of 300MW.51
Number of projects obtained by companies in tenders between 2017 and 2019 under the concession regime according to nationality (in percentages)
- Tunisian Company
- Foreign Company
- Tunisian + Foreign Company
Power (MW) if the sum of projects obtained (authorisation) by companies pooled nationality (in percentages)
- German
- Tunisian
- French
- Other foreign and consortia
Power (MW) of the electricity production projects obtained (concession) by companies depending on their nationality (in percentages)
- French/Moroccan
- Chinese/Emirati
- Norwegian (3 projects)
Thus, if the Tunisian-led renewable energy sector has some assets as regards the development of local projects, it remains too weak to carry out the expected large-scale projects in the current context. Thus, to reduce its dependency, Tunisia would be wise to promote small-scale projects at the household or community level that would be more suited to local expertise, and less intensive in terms of capital and knowledge requirements.
b) Challenges to promoting local development and to reducing regional inequalities
In order to ensure that the development of renewable energy in Tunisia is beneficial for the local economy, the 2015 law was followed by several other laws and decrees. These have included laws to create an incentive framework for investments in renewable energies. Law 2016-71, dated 30 September 2016, on investments in the field of renewable energies, and the subsequent government decree n°2017-389, dated 9 March 2017, concerning financial incentives encourage targeted regional development and local employment generation through renewable energy projects. They also create tax benefits to encourage companies to invest in marginalized regions52 and reinvest part of their profits.53
However, several developers and investors have faced difficulties finding funding and have pointed out some regulatory and bureaucratic challenges to participating in calls for tenders (also linked to the plurality of institutions involved).54
Fiscal and financial incentives seek to bring development to marginalized regions, which is where most of the renewable energy projects are located.55 However, the effective development of those targeted regions needs to be assessed, including by taking into account the risk of dispossession of communities. Indeed, when analysing the list of eligible companies for the installation of solar panels within the framework of the Prosol Elec56 project (for self-production purposes), the companies based in more developed regions stand out. Indeed, out of 380 Tunisian firms, only 40 are based in the targeted regions (Jendouba, Beja, Kasserine, Gafsa, Tozeur, Kebili, Tataouine, Gabes, Kairouan, Sidi Bouzid, Kef), with most of the companies being based in the Tunis and Sfax areas.57 This means that the more developed regions are reaping most of the benefits of the development of this sector by accumulating more profit and generating more employment, at the expense of other regions that need this the most.
To make an accurate estimation of job creation, both direct and indirect employment must be taken into account. In the case of renewable energy projects, direct jobs cover activities in the areas of energy production, installation and construction, and maintenance, whilst indirect jobs include sales, engineering and research, training, etc. The forecast of employment creation in the field of renewable energies is around 3,000 jobs per 1000MW produced annually with solar PV energy. The number of additional jobs for the whole renewable energy sector in Tunisia is estimated to be between 7,000 and 20,000.58 However, a majority of those jobs are not long-term since most of them are needed just for the construction and startup phase of projects which lasts just a few years (an average of five temporary jobs at this stage for 1 MW of renewable energy), whereas maintenance of projects requires very few employees (an average that drops to two sustainable jobs per 1 MW mostly in the field of maintenance).59 Therefore, large-scale PV and wind energy projects may not be best-suited to providing numerous long-term employment opportunities. In addition, the development of job creation has to be backed up by the stimulation of all branches of the sector. In this respect, the local production of the technologies required for renewable energy projects would offer strong potential for new job creation, since low dependency on importations implies more employment.60
Accordingly, despite an official focus on marginalized regions and local employment generation, there might be a risk that the current framework actually ends up taking hold of land in the least developed areas in order to exploit the renewable resources there, without proper compensation for local communities, maintaining an internal colonial dynamic.61
c) Social and environmental rights of local communities: emerging concerns in the light of the Borj Salhi village mobilization
In the strategic vision for the energy sector adopted by the government in 2018, fairness in energy distribution and good governance are officially promoted, through the securing of fair access to energy in every region, in the best conditions, the development of a social responsibility policy, the creation of a regulatory authority and the implementation of a more transparent process.62
Additionally, under the 2015-12 law, the first step required for an electricity production project using renewable energy, within the framework of the authorization regime, is the conducting of a feasibility study. This study must include environmental and social impact assessments. The environmental impact assessment must be carried out by a consulting firm and must include at least a basic description of the initial condition of the site, the characterization of the site and a description of neighbouring areas, an estimation of the future impact of the project on local flora and fauna, and an estimation of the visual and acoustic impact.63
However, despite this framework, social and environmental measures seem not to be always followed. In 2000, the first wind turbine project in Tunisia was established around 70 kilometres away from Tunis, in the northeast of the country, followed afterwards by other phases of installation in 2003 and 2009. This renewable energy power plant, which includes around 40 wind turbines, is providing electricity to 50,000 Tunisians. However, in Borj Salhi, the village in which the 2009 extension was implemented, villagers currently do not benefit from a connection to the high-voltage grid and cannot access STEG electricity meters, and their deteriorated grid experiences frequent outages. For more than a decade the nearby village community has denounced this power plant project, which is owned by STEG. Indeed, the 2009 extension provoked a social mobilization of the villagers living near the plant. The proximity to the wind turbines is one of the first reasons for their discontent: the closest turbine is located less than 50 metres away from one residence, causing discomfort for villagers, especially because of the consequences for their health of the constant noise, which also affects animals. From an environmental impact perspective, the landscape modifications have led to soil erosion and a dieback of olive trees. Among other issues raised by the villagers is the lack of maintenance of the wind turbines by STEG, which leads to technical accidents.
At the heart of the discontent is the lack of inclusive decision-making, which could have taken into consideration the consequences for local land and inhabitants, and ensured their ownership of the project. After the latest negotiation meeting, held in March 2021, between the villagers and STEG, the latter announced itself ‘ready to assume [their] full responsibility and to end this ten-year conflict’. However, the case remains open as no further action has been taken by STEG since then.64
The example of the village of Borj Salhi demonstrates that public awareness, local communities’ participation and rights, as well as environmental sustainability, are not yet guaranteed in the face of other interests. The impacts on the social and environmental rights of local communities should be closely monitored, both on paper and in practice, in future projects.