‘Creating an independent regulatory authority is essential to stability of energy sector’ (President of Tunisia Energy Society)

Interview by Maroua Ben Abdennebi) - President of the Tunisian Association of Energy Professionals, «Tunisia Energy Society» (TENS) Hichem Mansour called for the creation of an independent energy regulatory authority so as to achieve the sector's stability. The authority will help put an end to the current «archaic» governance model and ensure more transparency. In an interview with TAP agency, Mansour spoke of the main challenges facing the sector as well as the causes slowing down the energy transition in Tunisia. Founding member of TENS and electromechanical engineer Mansour stressed the need to focus on projects registered under the concession regime so as to accelerate the transition to renewable energy. He underlined that «a 100% renewable electricity mix could not be achieved», calling for promoting the use of unconventional hydrocarbons such as shale gas as a way to reduce the current energy deficit. TAP: What is your assessment of the energy sector in Tunisia? Hichem Mansour: In Tunisia, the energy system depends on more than 95% of gas which mainly comes from Algeria. National hydrocarbon reserves are being depleted, which is completely normal after several years of exploitation. Today, we must renew these reserves in order to reduce the energy deficit. Since 2010, the national hydrocarbon production has declined for various reasons, mainly because of social problems. Political instability has also contributed to the deterioration of the entire energy sector. Similarly, the Energy Ministry has undergone major changes over the past decade. It has been created and dissolved more than once, knowing that this ministerial portfolio has remained vacant until this day. However, this is the worst for energy, a sector which requires stability at the governance level, so that those in power can implement long-term strategies and make decisions. The Tunisian administration is full of qualified staff who are able to boost this sector, yet the lack of political maturity shows that these people work today in difficult conditions. TAP: What do you recommend to resolve this problem? Hichem Mansour: Our association has always called for the need to establish an independent regulatory authority for the energy sector, as is the case in most countries in the world and in the region such as Algeria or even Egypt. Working in close collaboration with the supervisory authority, this structure will provide stability to the sector. Therefore, government changes will not impact its activities. This authority will make it possible to establish more transparency in the sector and break with the current model of governance which remains archaic. The Tunisian Electricity and Gas Company (STEG) and the Tunisian Company of Petroleum Activities(ETAP) can no longer fulfill the role of operators and regulators. This is a conflict of interest situation. TAP: Tunisia is today lagging behind in terms of renewable energies. What are the factors hindering the energy transition? Hichem Mansour: Tunisia has very ambitious strategies and a set of laws regarding renewable energy. Yet, things slow on the ground. Once again, political instability led to administrative slowness. In the past, Tunisia received several offers from companies wishing to carry out electricity production projects through renewable energy yet procedures of signing contracts took two years. As a result, companies which made these offers were no longer eager to launch these projects because the prices had increased in two years. TAP: In 2022, Tunisia increased its ambition to increase the share of renewable energies in electricity production to 35% instead of 30% in 2030. Do you think it is still possible to achieve this? objective ? Hichem Mansour: This goal will not be achievable if we continue at the same pace. The share of renewable energies in the electricity mix is only 3% today whereas it should be around 15% to 20%. To speed up the energy transition in Tunisia, we must focus on projects registered under the concession regime, that is to say mega-projects. The concession regime involves all electricity production projects from renewable resources intended to satisfy local consumption whose installed electrical power exceeds 10 MW for photovoltaic solar power plants and 30 MW for wind power plants. By 2030 and 2035, we must carry out mega-projects of 500 MGW which will contribute to achieving the gaols set for 2035 (i.e. a share of 35% equivalent to 4,800 MW), which will allow us to save nearly $450 million in Algerian gas purchases per year. To do this, we must encourage the private sector and update the STEG distribution network, which is very efficient in terms of electricity network management. However, the latter is not yet suitable for stations with very large capacity.

Source: Agence Tunis Afrique Presse

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