Rural Electrification Institutional Rural Electrification Institutional Experience: Case of TUNISIAExperience: Case of TUNISIA

Ahmed Ounalli(*)Director, Strategic Studies Group-STEG

Energy Week at the World Bank

6-9 March 2006

(*) ESMAP Study prepared by:

E. Cecelski, A. Ounalli, M. Aissa, J. Dunkerly

RURAL RURAL ELECTRIFICATION ELECTRIFICATION RATE BY REGIONRATE BY REGION

20042004

NORTH WEST96,6%

CENTER WEST96,8%

NORTH EAST97%

CENTER EAST97,9%

GRAND TUNIS97,5%

SOUTH WEST96,3%

HAMMAMET

SFAX

SOUSSE

GABES

GAFSA

TATAOUINE

KEBILLI

SOUTH EAST96,8%

BIZERTE

OVERAL Electrification Rate

98.9%

National Rural ER

97%

Origins of the ProgramOrigins of the Program

1962: Tunisian Electricity & Gas Company (STEG)

1973 – 1976: technical & economic studies lead to low cost three phase/single phase MALT

Tunisia’s Rural Electrification Program,1972-2004Tunisia’s Rural Electrification Program,1972-2004

Rural Electrification Rate%

616

28

48

7688

97

72-76 77-81 82-86 87-91 92-96 97-01 02-04

years

MALT ConfigurationMALT Configuration

1- Phase transformer

1- Phase MV branch

1- Phase LV lines

3- Phase MV main line

Three Pillars of Rural Three Pillars of Rural DevelopmentDevelopment

EDUCATION (human resource development and legal rights)

HEALTH (family planning)

RURAL ELECTRIFICATION (coordination with above)

Rural Village Electrified from a single-phase line

LOCAL LEVEL ACTORS AND MAIN LOCAL LEVEL ACTORS AND MAIN FUNCTIONSFUNCTIONS

Oumda/Rural households

Governorates Delegation

STEG-District

Represents rural hhlds

Political authorities

Implements electrification program

NATIONAL LEVEL ACTORS AND MAIN NATIONAL LEVEL ACTORS AND MAIN FUNCTIONSFUNCTIONS

Ministry of Economic Development and Commissariat Général de Dévelopment Rural (CGDR)

Ministry of Industry and Energy

STEG ANER National Solidarity

Fund (FNS), Presidential Fund

National Socio-Economic Plan: infrastructure investment for 5 years

Funding of Plan Define national program

for RE Implementation from

grid Implementation from PV Extra-budgetary funding

Responsibilities for Rural Responsibilities for Rural Electrification in TunisiaElectrification in Tunisia

M INISTRY OF INDUSTRYNational Com m ission

For Rural E lectrification

P D R -P D R IC G D R

S T E G D IS T R IC T A N M E R E G IO N A L O F F IC E

G O U V E R N O R A TD E L E G A T IO N

M INISTRY OF ECONOM ICDEVELOPM ENT

Presidential FundNational Solidarity

Fund

ANM E CENTRAL OFFICE

STEG CENTRAL OFFICE

Modern milk cow farming on an electrified farm

Silo for local wheat harvest located in rural area

Selection process: political levelSelection process: political level Five Year Plan targets areas for rural development

based on – income– unemployment– environmental quality– gender status– expected rate of return– costs of job creation – improved living conditions

Potential RE projects and beneficiaries identified within areas selected at regional level – linked with rural development plans (health, education,

water, roads)

Selection process: STEGSelection process: STEG

Construction of cost estimates by STEG at district level (site visits, feasibility study)

STEG provides cost scenario table to national level planners at MDE: Number of households and costs by cost level and by Governorate

MDE selects projects by setting cost ceiling

Five year plan is finalized and regional level receives funds

COST CEILINGCOST CEILINGCEILING INCREASE in TND/beficiary-project

3 000

2 200

1 2001 000

400700

0

500

1000

1500

2000

2500

3000

3500

4000

77-81 82-86 87-91 92-96 97-01 02-06'

Financing Rural ElectrificationFinancing Rural Electrification

Regional Development Programme (PRD) Integrated Rural Development Programme

(PRDI) Presidential Fund National Solidarity Fund Since 1977: external debt (ADB, World

Bank, AFD, Kuwait Fund) Photovoltaic program: suppliers, WB

credits, NGOs

How connection to the grid is financedHow connection to the grid is financed

BUDGETARY FUNDS FOR AGREED CEILING (example of 9th Plan : 2200 DT ):

Ceiling US$1530 (2200 TND/beneficiary-cluster)

Household $140 up to $420

(200 up to 600 TND) depending on Region (spread over 36 bills= 72 months)

STEG $140 (200 TND) since 1987

Government up to $1250

(1800 TND) as a max, 82% of ceiling cost

EXTRA-BUDGETARY FUNDS (>2200 DT): - National Solidarity Fund - Presidential Fund

Trends in LV Household Tariff (Mill/kWh)

66

108

0

20

40

60

80

100

120

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Less than 50 kWh More than 50kWh

Installing an electric poleInstalling an electric pole

 

Reasons for Success - 1Reasons for Success - 1 National commitment:

– education, health, rural electrification with social equity

Integrated rural development context: – synergy effects of regional planning

process Effective institutional approach:

– well-defined, coordinated roles – fair, established procedures including

political

Reasons for Success - 2Reasons for Success - 2 Well managed and innovative utility:

– effective and efficient Lowering costs for rural electrification:

– capacity to adapt technology to meet Tunisian needs

Effective tariff policy: – financial viability

Complementary PV strategy: – commitment and coordination

Goal of providing electricity services to widely scattered rural populations in Africa is ACHIEVABLE

Need to adapt technology and financing procedures to local context

Need for strong and consistant support from the State

ConclusionsConclusions

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