Good practice package for buildings in Tunisia

Policy roadmap and targets for ultra-low energy buildings/retrofits
In Tunisia, the residential sector consumes 17% of final energy and figures indicate that cumulated with the tertiary sector 27% of final energy is used in the buildings sector. According to the Quadrennial (RCREEE 2010, p. 5) plan running from 2008 to 2011, 400,000 toe/yr was to be saved by 2011 through better lighting, thermal insulation and appliance standards. This figure represents close to 4.5% of the overall energy use in Tunisia having been 9,200 ktoe in 2009 (World Bank 2012) and also accounts for approximately 19.2% of the energy consumption in buildings. Therefore, a programme to promote standards funded by UNDP and the French government with $10.6 million was carried out. “The project succeeded in realising 46 demonstration projects, on the basis of which ANME (this is the national energy agency; comment by the bigEE team) was able to develop seven sectoral guides for professional people in the field. Focus was directed at low-cost interventions that would not add more than 10% to the cost of the building. A label indicating comfort and energy performance of buildings was developed and an extensive communication programme was launched with television, radio and newspaper advertisements; a dedicated web-site was created for all levels of interest“ (RCREEE 2010, p. 11).
Subsequent to the Quadrennial Plan, paragraph 11 of the Presidential Plan from 2009 to 2014 with the main aim being “Towards environment-friendly, energy-saving and innovative economy with high technological content” sets further targets for energy efficiency: “Improving energy efficiency indicator to reach 275 kg oil equivalent per 1000 dinars of GDP at constant prices, in 2014, compared to 305 kg currently” (STEG 2010; RCREEE 2011).

International Co-operation
Ambitious targets like this give planning security to foreign investors investing in the field of energy in Tunisia as well as to domestic investors.
Traditionally, France and Tunisia have a close relationship due to colonial heritage and geographical proximity. Furthermore, France is an important partner in the energy sector for the North African country. A network of Local Energy Information Centres which have been successfully implemented in France is supposed to be transferred to Tunisia. The goal is to “heighten awareness and inform householders, retailers and tradesmen of the importance of a more rational use of energy“ (ADEME 2010).
From 2003 to 2013 the German Agency for International Cooperation (GIZ, formally known as GTZ (Agency for Technical Cooperation)) has worked together with the National Agency for Energy Management in order to develop tailor-made instruments for energy efficiency and renewable energy measures in Tunisia. Other public or private energy consumers were also informed about how to save energy (OEI NA).
Other bilateral or multilateral donors such as Japan or the World Bank are also working in the energy context in Tunisia.

Energy Agencies
The Tunisian National Agency for Energy Management (Agency Nationale pour la Maîtrise del’ Énergie, ANME), established in 1985, is in charge of “tanslating ministerial policy directives into practice.” It has 140 employees and seven regional offices. ANME is in charge of initiatives and measures that aim to increase the energy efficiency and to diversify energy resources.
Secondly, there is the Tunis International Centre for Environmental Technologies (Centre International des Technologies de l’Environnement de Tunis, CITET) which majorly works on facilitating environmental technologies in the country (REEGLE NA). 120 people are employed at CITET. Its annual budget is around TD 8 million (€4 million) of which 60% are provided by the international community.
- Overall co-ordination and funding for policies and programmes
The national energy policy in Tunisia is developed by the Ministry of Industry and Energy (Ministère de l’Industrie, de l’Energie et des Petites et Moyennes Entreprises, TMIE). In particular the Directorate General for Energy of the TMIE is responsible for planning and implementation.

Energy Efficiency Funds
Grant programmes for energy efficiency and solar water heaters are financed through the National Energy Fund (FNME). Law N° 2005-106 from December 19, 2005 is “representing a quantum leap towards the choice of an extra budgetary resource for financing the public support to energy conservation investment, and this is based on the granting of allowances“ (ASEM 2011, p. 18). The resources of the fund are supplied by tax measures, including levies on car registration as well as import or production of air-conditioners. Since the Fund’s resources are not sufficient to cover all projects concerning energy efficiency and renewable energy planned in Tunisia, international banks provided two concessionary credit lines (RCREEE 2010, p. 13). Further capital comes from GEF, which, as an example, financed the establishment of energy services companies (GEF NA), and from FGEF (French Global Environment Fund).

Removal/reduction of subsidies on end-user energy prices and on energy supply
Fossil fuel subsidies, which constrain public finances and pose an obstacle to dissemination of various energy efficiency and renewable energy measures, are to be phased out by 2017 (CPI 2012, p. 11). Data on the exact amount varies: while the IMF estimated subsidies amounted to 1% of Tunisia’s GDP or approximately €200 million in 2008, RCREEE believed them to be at around €900 million or 4% of the GDP in 2007 (CPI 2012, p. 19).

• Energy/CO₂ taxation and emissions trading
• Removal of legal barriers
• Regulation of energy companies

Regulation of energy companies in Tunisia takes place within the framework of the PROSOL programme, as the Tunisian Company of Electricity and Gas (STEG, Société Tunisienne de l’Ectricité et du Gaz), which is a public and non-administrative company, having the monopoly for electricity distribution in Tunisia, has been appointed by the government to manage the PROSOL programme’s credit line. STEG takes out a credit line, grants credits to beneficiaries, guarantees credit repayment by the end-user via the bi-monthly electricity bill and provides credit recovery. STEG covers its management and guarantee costs with a share of 35 DT for each processed application. A private bank (ATTIJARI Bank) ensures the availability of the credit line to STEG.

Minimum energy performance standards (MEPS) for buildings & equipment
Minimum Energy Performance Standards for buildings are of special importance in developing countries because the rate of new construction is very high.
For new buildings in the public sector, thermal insulation is obligatory since April 2005. Temperature requirements in buildings depend on the location of the building. ANME sub-divided Tunisia in three zones. The thermal insulation regulation is combined with PROMO-ISOL, a promotional programme for insulation, which is intended to help insulate 20,000 homes and 1,500 tertiary sector buildings (RCREEE 2010, p. 11). PROMO-ISOL is funded by an AFD credit line and offers about 20 TD (ca. €10) per m² of insulated roof over a credit period of five to ten years. According to reegle, the revolution of 2011 did not have major consequences on the Tunisian energy sector, however, PROMO-ISOL still seems to be in a planning stage (www.bigee.net/s/eaan2e).

Established as a legal framework in Article 10 of Law 2004-72 (revised 2009-7) new buildings and extensions to existing buildings are required to meet a minimum energy performance standard. “Residential improvements for new buildings include efficient windows for sunlight and shading, insulation and solar panels. Subsidies help energy users comply with efficiency measures. In partnership with AFD [Agence Française de Développement], a new insulation technique project has been launched” (Bahri 2011, p. 3).
The thermal insulation regulation is combined with PROMO-ISOL, a promotional programme for insulation, and PROSOL for solar water heaters (cf. more detail under ‘Incentives and financing’).

Mandatory energy performance certificates & equipment labels
A mandatory energy performance labelling scheme is being implemented for four different buildings types: offices, multi-occupancy apartments, which have been running since January 2010, and for community buildings and factories, which will be implemented later (RCREEE 2010). The labelling system consists of eight levels visualised through eight bars. The first four bars are for buildings exceeding the minimum requirements. The fifth one means that the respective building is in line with the MEPS while bar six to eight refer to (existing or non-regulated) buildings performing worse than the MEPS.

Provision of information
France supports the Tunisian government in copying the French network of Local Energy Information Centres. These centres provide information (free of charge) to the public on how to save energy. As the building owner rate is quite high (>83%), the population growth is stable and 61% of Tunisians live in urban areas, a trend that steadily increases (urbanisation rate: 3.6% annually), these information centres may have a big impact in the North African country.
As described in the policy roadmap section, there is a communication and awareness programme, which includes television, radio and print advertisement. Further actions to raise awareness on energy efficiency are also implemented and the focus lies on informing the public about improving comfort in buildings, trying to involve the consumers in sustainable development and to put an emphasis on the saving opportunities for families. There is also a focus on improving co-operation with, and among, professionals from the building sector, like national and international consultancies, promoters, architects, heating engineers, and researchers through organising awareness events and seminars, for example (FEEM et al. 2010, p. 16).

Financial Incentives and Financing
PROMO-ISOL (short for Development of roof thermal insulation) is a financial incentive scheme for residential builders to invest in thermal insulation of roofs by “providing a subsidy per m² of insulated roof combined with a soft loan for remaining costs” (KfW 2010, p. 3). The programme is funded by an AFD credit line and is to help insulate 20,000 homes and 1,500 tertiary sector buildings (RCREEE 2010, p. 11). As the housing ownership rate is estimated to be at over 83% (Antipolis 2011, p. 79), such financial incentives are believed to be absorbed by the public quite well. The subsidy offered by ANME will be close to TD3/m² (€1.67/m²). Local banks are to provide soft loans, ca. TD 20/m² (€10/m²) per m² of insulated roof over a credit period of five to ten years, in order to enable builders to pay the remaining amount of the investment cost.
A network of controllers e.g. composed of architects and engineers etc, will safeguard the implementation of standards. PROMO-ISOL seems to be primarily a measure for higher income levels as they use energy consuming appliances such as air-conditioners and refrigerators while lower-income levels do not have such equipment and, moreover, use biomass for heating, in general (KfW 2010, p. 3).
Apart from financial incentives, awareness towards energy efficient construction is to be raised by the programme. The lack of awareness is a core barrier to the implementation of sufficient thermal insulation.
According to Reegle, the revolution of 2011 did not have major consequences on the Tunisian energy sector, however, PROMO-ISOL still seems to be in a planning stage (www.bigee.net/s/eaan2e).

PROSOL (Programme de promotion des CES, promotion programme for solar water heaters) is a programme for the development of the Tunisian solar water heater industry in order to replace fossil energies, in particular liquid petroleum gas (LPG), which is highly subsidised by the government. The programme includes several incentives for suppliers as well as for residential households as end-users. In the case of suppliers, PROSOL provides a VAT exemption for finished or semi-finished products and raw materials, as well as from customs duties, as they are deemed as imported products or raw materials. Additionally, there is a top-down and a bottom-up quality assurance system for suppliers and their products, which are marketed within the programme framework to ensure aftersales service and improve the public image of the solar water heater.
Regarding the end-users PROSOL includes the provision of a direct public subsidy for buying a solar water heater. Furthermore, for the remaining costs of the solar water heater, approximately 80%, PROSOL provides direct and simplified access to bank financing with credit recovery over 5 years via the electricity bill.

Education & training
There are several capacity building programmes in Tunisia. These include (FEEM et al. 2010):

• training courses in construction techniques, methodologies and software for temperature simulations organised by professionals; 
• an e-learning programme set up to build capacity among architects in the design of energy efficient buildings;
• tools to aid the design of low energy buildings made available to construction professionals: 
  • seven technical guides covering buildings for different purposes (housing with or without equipment, hotels, hospitals, shops, offices and teaching establishments); 
  • a guide to climate zones and a guide on capacities for heating and air conditioning equipment;
• temperature simulation tools developed for designers: one for residential buildings (CHEOPS software) and one for the tertiary sector (CLIP software). 

The Ministry of Education and Training, the National Federation of Entrepreneurs and the French Development Agency “are the main actors working to improve the qualifications of employees in the [building] sector” (Oxford Business Group 2010, p. 121).

RD&D and BAT promotion
Tunisia implements a variety of demonstration projects in order to “demonstrate the economic feasibility of energy efficiency projects in construction“ (FEEM et al. 2010, p. 9). This means, that not only the buildings will be energy efficient, but also their construction. There are six simple technical improvements listed (ANME 2010, pp. 10-11) which should help to achieve this: architectural design, wall and roof insulation, choice of materials, use of high quality glazing in terms of optical and thermal performance, use of renewables, and use of energy efficient lighting in buildings. Examples of demonstration buildings are:

• in the tertiary sector: the Ennasr Private Clinic in Tunis with a surface area of 7,400 m², where 45% of energy has been saved with an additional construction cost of 350,000 TD (approx. €178,000); 
• in the tertiary sector: Tunisia is partner country of the MED-ENEC (Energy Efficiency in the Construction Sector in the Mediterranean) (www.bigee.net/s/eehi5w) project. In this framework, the following pilot building project is being carried out: The Green Hill Resort, an eco-hotel SPA complex in Beni M’’Tir in the Northwest of Tunisia. Accommodation is provided in three zero energy chalets with a total floor space of 148 m² and incorporating technology based on geothermal and solar energy as well as bioclimatic architectural elements. The primary energy consumption of the Green Hill Resort Pilot Project is reduced by about 95% compared to a comparable conventional building. However, investment costs are much higher than for a standard solution (www.bigee.net/s/i24vj6). 
• in the residential sector: the building complex Sortis in Jardin d’El Menzah in Tunis with a surface area of 2,875 m² and 60 housing units. With an extra construction cost of only 82,000 TD (approx. €42,000, equivalent to €700 per dwelling or around €15 per m²) (2.9% of total construction cost) 40% of energy savings were achieved (FEEM et al. 2010, p. 15). This investment is, therefore, highly cost-effective for society and the occupants of the building.

Finding optimal temperature and energy requirements for buildings will be further developed and financed by the FGEF (€1.9 million), the GEF (€4.2 million), the Tunisian Government (€1.6 million) and other sources (€2.6 million).