Overview of the “PROSOL-ELEC” Program
The low tension (LT) photovoltaic system connected to the grid was initiated thanks to the PROSOL ELEC programme. A first pilot phase, preparing the various participants and the sector, was launched in 2010-2011. The pilot phase’s objective was to achieve an installed capacity of 1.5 megawatt (MW). Following the success of this initial phase, the Tunisian state decided to renew the PROSOL ELEC programme.
At the end of 2019, as a result of the PROSOL ELEC programme, nearly 3,400 households had been fitted with photovoltaic panels, achieving a total installed capacity of around 11,298kWp.
As a result of the creation of a network of companies installing photovoltaic systems, PROSOL ELEC has effectively brought about the development of a whole new business sector. At the end of 2019, ANME had approved 362 installation companies, of which around 100 are still active.
PROSOL-ELEC Economique sub-program
In 2015, in collaboration with the German Ministry of the Environment, ANME developed Nationally Appropriate Mitigation Measures (NAMA) in the building sector entitled ‘Energy Management in the Tunisian Building Sector’ (‘Maîtrise de l’énergie Dans le Secteur du bâtiment en Tunisie’) to support the following three programmes:
- Photovoltaic Solar Roof Development
- Solar Water Heater Market Development
- The PromoISOL programme for the development of domestic roof insulation.
As part of the promotion of this NAMA, ANME was able to benefit from the financial support of the ‘NAMA Facility’ fund: ANME’s proposal was one of twelve schemes selected for support out of a total of 75 candidates for international projects. The funding entailed technical support valued at €9.8 million for the three programmes above, as well as financial support of €5.3 million for the ProsolELEC programme. These two grants were agreed in the form of a donation, for the period 2019-2023.
The Target Population
The financial component of the NAMA Facility financed programme aims to encourage households with an electricity consumption of less than 1,800 kWh per year to employ the Prosol ELEC Économique mechanism. It should be noted that this household category does not benefit from the ProsolElec programme. These households represent considerable potential, given that they encompass approximately 1,840,000 households – almost half of STEG’s low-voltage customers.
More than a million of those in the targeted population are in the State’s 1 & 2 Kilovolt-Ampere (kVA) economic tariff band; the remaining 800,000-plus households belong to the normal band (> 2 kVA). The former category of consumers is generally those on the most highly subsidized electricity tariffs and belongs to low- and middle-income economic strata. Targeting these socio-economic strata has the benefit of reducing consumers’ energy vulnerability on the one hand, and reducing State subsidies to the electricity sector, on the other.
Financial Mechanism :
The financial mechanism proposed for this programme is similar to that of the existing ProsolElec. This consists of a subsidy granted by the Energy Transition Fund (FTE) together with a bank loan reimbursed by STEG via consumers’ electricity bills. However, economic analysis has shown that it would be impossible to enlist the target population using the same conditions as for the existing ProsolElec mechanism. The following two conditions are necessary for monthly loan repayments to be less than or equal to the reductions on the target households’ bills:
- The loan repayment period needs to be extended to 10 years instead of the current 7 years;
- The interest rate on loans needs to be reduced to 3%.
The potential population for this programme is estimated at around 716,000 households, or nearly 40% of the original target population.