Tunisia energy storage subsidy policy release time

Should Tunisia phase out energy subsidies?

Tunisia's energy subsidies have become increasingly costly, averaging 2.1 percent of GDP over the last decade and jumping to 5.3 percent in 2022. Phasing out energy subsidies would help address not only the macro-fiscal crisis but could also improve the energy sector performance and stimulate renewable energy production.

How will the Tunisian energy transition work?

The Tunisian energy transition can take multiple trajectories. In the business-as-usual scenario, large-scale projects, heavily led by foreign private companies will continue dominating the renewable energy landscape. Resistance from trade union workers and local communities will multiply, hindering the transition to clean renewable energy sources.

How does neoliberalism affect the energy sector in Tunisia?

Two main narratives are currently influencing decisions in the Tunisian energy sector. The first dominant discourse draws on neoliberal practices of green extractivism, where natural resources are exploited for export purposes, whereas the second opposing discourse calls for justice, democracy, and community ownership of energy projects.

Will Tunisia's GDP grow in 2023?

Published under the title Reforming Energy Subsidies for a More Sustainable Tunisia, the report forecasts Tunisia's GDP growth for 2023 to be around 2.3 percent, subject to significant uncertainty and depending on the progress of financing conditions and structural reforms.

What are the project regimes in Tunisia?

Depending on the size of the project, Tunisia employs two different project regimes: the Concessions regime, which is applicable for large-scale projects typically designed for energy export, and the Authorizations regime, which is for projects with a maximum capacity of 10 MW, 30 MW, and 15 MW for solar, wind, and biomass projects, respectively.

How do transnational companies resell oil and gas in Tunisia?

For example, transnational companies in Tunisia can own 100% of oil and gas concessions, which is the case of Shell that receives full interests on the Miskar concession, the largest gas field in the country 24 . After extraction, the multinational company then proceeds to resell the gas to STEG, in hard currency as if it were an imported good21 .