The objective of the Full Project is to enable Tunisia to increase the use of wind energy by removing the barriers that are currently impeding large-scale adoption of this technology. The objective of the Full Project is to target both large-scale on-grid production of wind energy and small-scale off-grid production units in remote rural settings. (2/8/01)
A project brief was submitted to the GEF on September 2003. The project was significantly upscaled as its structure, scale and scope substantially changed from the original concept. The total cost increased from $25 to over $106 million, the off-grid component was withdrawn, and the MW of wind power generation installed changed from 20-25MW to 100MW.
Brief summary: By committing itself to the deployment of 100MW on-grid wind capacity in its 10th plan (2003-2007), the government of Tunisia seeks to cut the country’s emissions of greenhouse gases while taking a strategic position towards the increasing promises of the wind electricity industry worldwide. With only 20 MW on-grid wind capacity currently operating under the ownership and management of the state Power Monopoly, Tunisia has also announced the future installation of an additional 200MW on-grid wind power plant within its 11th plan (2008-2011), thus adopting a long-term program approach in order to maximize private sector participation on a self-sustaining commercial basis. The benefits of the above capacity increases could be substantial to the country, stimulating to the wind power industry and the global environment (improved energy balance and integration of local manufactures, sizable market opportunities for wind-turbine manufacturers, together with significant CO2 abatement), but only if accompanied with targeted capacity strengthening, deep regulatory reforms that spell out the role of key actors in a transparent environment along with the required foreign direct investments (FDI) to drive-in the expected private sector capital and technical "know-how".
The project intends to provide the enabling environment for private sector investments in wind power production in Tunisia. The barriers in the regulatory and institutional environments, the lack of technical capacity within the government as well as with the private sector, and the informational barriers will be removed. The need for the previously existing subsidy component has been removed from the project due to the rise in energy prices and the indication through leading private sector investors that the regulatory environment is the most important bottleneck.|