Scholarly article on topic 'The Tunisian Solar Thermal Market: A Change of Scale'

The Tunisian Solar Thermal Market: A Change of Scale Academic research paper on "Earth and related environmental sciences"

CC BY-NC-ND
0
0
Share paper
Academic journal
Energy Procedia
Keywords
{PROSOL / "Tunisian SWH market" / "solar water heater" / "quality assurance" / "change of scale"}

Abstract of research paper on Earth and related environmental sciences, author of scientific article — Abdelkader Baccouche

Abstract In the face of continuous increase in oil demand in the international market over the last few years, coupled with the stabilization of national hydrocarbon resources and the growth in the national demand of energy, since 2000 the energy balance in Tunisia has been characterized by an energy production deficit. Therefore, since 2005, Tunisia has committed to a national plan of energy conservation and renewable energy development, with the goal to reduce (fossil) energy consumption 24% by 2016 and 40% by 2030. Conscious of the energy challenges, the Tunisian Government through the National Agency for Energy Conservation (ANME) has established an ambitious program to promote solar water heaters (SWH), called “PROSOL”, which has already increased the installation rate of solar thermal from 7 000 m2/year to 80 000 m2/year. PROSOL is being implemented in three steps: residential, tertiary, and industrial. The Residential PROSOL financial mechanism focuses on the removal of two major barriers to the final consumer: the heavy initial investment and the high payback time in comparison with other conventional technologies. Promoting the quality of solar installations is a central objective of the program PROSOL Tunisia. Installation objectives in the tertiary sector during the period 2010 – 2016 are 30 000 m 2, with 15 000 m 2 already completed and 4 000 m 2 expected completed in 2013 alone. Financing is supported by UNEP and ANME and is provided at several points in the project cycle including subsidies of feasibilities studies, capital cost, and maintenance. The third mechanism is Industrial PROSOL. Since 2010, this solar process heat program has been developed with the aim to install 30 000 m 2 in the industrial sector during the period 2010 - 2016. This is a pilot phase for establishing a funding mechanism appropriate to the industrial sector, identifying barriers to the development and implementation of the first solar installations in industrial process in Tunisia. The first installation of 955 m2 in the textile sector will be in operation by the end of 2013.The PROSOL Program creates a real change of scale in the market for solar water heaters in Tunisia. The typical indicators of development continue to advance for this market as the programs advance, including a substantial increase in local manufacturing, local job creation, financial and energy savings to the State, and emissions avoidance. Finally, the requirement of QUALISOL and SWH certification based on Solar Keymark standards ensures a lasting quality and durability to the sustained growth of the solar thermal market in Tunisia.

Academic research paper on topic "The Tunisian Solar Thermal Market: A Change of Scale"

Procedía

SHC 2013, International Conference on Solar Heating and Cooling for Buildings and Industry

September 23-25, 2013, Freiburg, Germany

The Tunisian solar thermal market: a change of scale

Abdelkader Baccouche*

Head of solar thermal energy Department, National Agency for Energy Conservation (ANME), 3 rue chatt Myriem, Montplaisir, BP 213, CP1073, Tunis, Tunisia

Abstract

In the face of continuous increase in oil demand in the international market over the last few years, coupled with the stabilization of national hydrocarbon resources and the growth in the national demand of energy, since 2000 the energy balance in Tunisia has been characterized by an energy production deficit. Therefore, since 2005, Tunisia has committed to a national plan of energy conservation and renewable energy development, with the goal to reduce (fossil) energy consumption 24% by 2016 and 40% by 2030.

Conscious of the energy challenges, the Tunisian Government through the National Agency for Energy Conservation (ANME) has established an ambitious program to promote solar water heaters (SWH), called "PROSOL", which has already increased the installation rate of solar thermal from 7 000 m2/year to 80 000 m2/year. PROSOL is being implemented in three steps: residential, tertiary, and industrial. The Residential PROSOL financial mechanism focuses on the removal of two major barriers to the final consumer: the heavy initial investment and the high payback time in comparison with other conventional technologies. Promoting the quality of solar installations is a central objective of the program PROSOL Tunisia. Installation objectives in the tertiary sector during the period 2010 - 2016 are 30 000 m2, with 15 000 m2 already completed and 4 000 m2 expected completed in 2013 alone. Financing is supported by UNEP and ANME and is provided at several points in the project cycle including subsidies of feasibilities studies, capital cost, and maintenance. The third mechanism is Industrial PROSOL. Since 2010, this solar process heat program has been developed with the aim to install 30 000 m2 in the industrial sector during the period 2010 - 2016. This is a pilot phase for establishing a funding mechanism appropriate to the industrial sector, identifying barriers to the development and implementation of the first solar installations in industrial process in Tunisia. The first installation of 955 m2 in the textile sector will be in operation by the end of 2013.The PROSOL Program creates a real change of scale in the market for solar water heaters in Tunisia. The typical indicators of development continue to advance for this market as the programs advance, including a substantial increase in local manufacturing, local job creation, financial and energy savings to the State, and emissions avoidance. Finally, the requirement of QUALISOL and SWH certification based on Solar Keymark standards ensures a lasting quality and durability to the sustained growth of the solar thermal market in Tunisia.

* Corresponding author. Tel.: 00216 71 906 900; mobile 00216 97 225 880; fax: 00216 71 904 624. E-mail address: abdelkader.baccouche@anme.nat.tn

Available online at www.sciencedirect.com

^Я/ ScíenceDírect

CrossMark

Energy Procedía 48 (2014) 1627 - 1634

1876-6102 © 2014 The Authors. Published by Elsevier Ltd.

Selection and peer review by the scientific conference committee of SHC 2013 under responsibility of PSE AG doi:10.1016/j.egypro.2014.02.183

© 2014The Authors.Publishedby ElsevierLtd.

Selectionand peerreviewby thescientificconference committeeofSHC2013underresponsibilityof PSEAG Keywords: PROSOL; Tunisian SWH market; solar water heater; quality assurance, change of scale

1. Introduction

In the face of continuous increase in oil demand in the international market over the last few years, coupled with the stabilization of national hydrocarbon resources and the growth in the national demand of energy, since 2000 the energy balance in Tunisia has been characterized by an energy production deficit. Therefore, since 2005, Tunisia has committed to a national plan of energy conservation and renewable energy development, with the goal to reduce (fossil) energy consumption 24% by 2016 and 40% by 2030.

Nomenclature

ANME National Agency for Energy Conservation

SWH Solar Water Heater

STEG Tunisian Company of Electricity and Gas

UNEP United Nations Environment Program

IMELS Italian Ministry of Environment, Land and Sea

MEDREC Mediterranean Renewable Energy Centre

Ktoe/y Kilo ton oil equivalent per year

KTCO2/y Kilo ton CO2 equivalent per year

mDT 1000 Tunisian Dinar

FNME National fund for energy conservation

Tunisia has a solar irradiation rate sufficiently favorable for the development of solutions using solar energy especially the market development of solar water heaters (SWH). Solar water heating constituted a good alternative to the traditional means of heating of water using the conventional energy sources such as electricity, liquid propane (LPG) and natural gas, whose cost does not stop increasing in recent years.

Conscious of these challenges, the Tunisian Government through the National Agency for Energy Conservation (ANME) has established an ambitious program to promote solar water heaters called "PROSOL" which already increased the installation rate of solar thermal. Drawing on its experience of two decades in SWH, ANME has developed the most practical and appropriate strategy to succeed in this program including:

• Establishment of a regulatory and incentive framework conducive to the development of renewable energies including solar energy;

• Establishment of an investment code conducive to renewable energy offering many direct and indirect benefits;

• Creation of the National Energy Conservation Fund (FNME) to ensure stable resources for public financing of the sector, to encourage the local SWH industry to invest, in the local market and to develop expansion opportunities in the regional market..

Indeed, PROSOL benefitted from this support to set up a financial, organizational and institutional mechanism making it possible for this solar sector to migrate towards a true scaling change.

The positive indicators of success since the beginning of the PROSOL program have helped encourage the Tunisian Government to increase its support of renewable energies. These positive indicators have helped persuade political decision makers of the future of renewable energies as a durable and sustainable solution to Tunisia's energy demands. Political determination has been forged in the implementation of the Tunisian Solar Plan which includes the realization of about ten renewable energy projects, covering the electrical production by renewable

resources with a total power of 700 MW in 2016. Production is mainly through wind and solar energy as well as SWH by installing an additional area of 600 000 m2 of collectors.

2. The PROSOL Program

The Tunisian experience has shown that the market development of solar thermal energy cannot be done properly and with sustainable, lasting result unless we take specific and adequate financial, institutional, organizational and qualitative measures.

2.1. Residential PROSOL

Financial mechanism

The financial mechanism implemented by the ANME PROSOL Residential program focuses on the removal of two major barriers to the final consumer:

• the heavy initial investment, and

• the high payback time in comparison with other conventional technologies. To do so, this mechanism is based on two main devices used in combination:

• The granting of a government grant for each purchase of SWH through the National Fund for Energy Conservation created for this purpose in 2005which improves the recovery time for the end user;

• The providing of credit to the consumer, repayable over a period of five years, with payment ensured through the electricity bill of the Tunisian Company of Electricity and Gas (STEG).

Institutional mechanism

At the institutional level, the program PROSOL involved the participation of the major players involved directly and indirectly by the program:

• The National Agency for Energy Conservation (ANME), responsible for establishing and implementing the program and leading coordination between the different partners of the program;

• The Tunisian Company of Electricity and Gas (STEG), which will ensure the recovery of loans from the bank through the electricity bill;

• The Bank which provides loans to consumers paid directly to suppliers on behalf of the consumer and on a fixed schedule. The recovery of these funds will be provided through STEG;

• Other institutions and agencies performing certain activities in the program such as training for installers (The Tunisian Agency for Vocational Training (ATFP), and testing and control of solar water heaters (including the laboratory CTMCCV, INNORPI, TUNAC, etc.)

Organizational mechanism

The PROSOL program is managed as described in a procedural manual and defined according to the simplified procedures shown in Figure 1.

Fig.1. Solar thermal simplified procedures in residential sector, Source ANME

For the Supplier: The mechanism ensures the supplier a predictable cash flow by guaranteeing the payment of grants and payment of loans on fixed terms (15 days for the grant and two months for the credit). A computer application was developed and designed for this purpose to facilitate the management of PROSOL;

For the customer: A customer can be equipped with a SWH system without any initial investment and this by being granted, in addition to the subsidy, a bank loan with a preferential interest rate for any customer even if the loan is shown to be a poor risk. To acquire an SWH system, the customer signs only one _ form o f adhesion with PROSOL and presents a proof that he has an account with STEG, hence an electricity bill. The rest of the procedure is supported by the supplier, the administration (ANME, STEG) and the bank.

Control mechanisms of Quality

Promoting the quality of solar installations is a central objective of the program PROSOL Tunisia. This objective was achieved through several measures including:

• Development of specifications for eligibility of accreditation for suppliers of solar water heaters;

• Introduction of a system of unannounced inspection visits to the installers and suppliers;

• Setting up a qualification program for installers called "QUALISOL" and certification of solar water heaters similar to Solar Keymark;

• Development of a practical guide for installing solar water heaters describing the basic rules to follow, to disseminate best practices and mistakes to avoid when installing a solar water heater;

• Launch of a training program for installers to improve their competence in the installation and maintenance of solar water heaters;

• Equipping a National Laboratory for testing the thermal performance of solar water heaters as a first step, and testing mechanical performance and durability of solar water heaters in a second step.

2.2. Tertiary PROSOL

The tertiary sector is the second sector targeted by PROSOL and considers the use of solar thermal energy for collective uses. This sector is strongly dominated by hotels, hammams (steam baths), and university dormitories.

Both the success of "PROSOL Résidentiel" and the substantial market potential in the tertiary sector estimated at 500 000 m2 of solar collectors, helped to justify a second mechanism promoting the large-scale diffusion of SWH in the tertiary sector.

Objectives of the program

• Installation of 30 000 m2 in the tertiary sector during the period 2010 - 2016;

• Installation of 200 000 m2 by 2030;

• Installation of 4 000 m2 in the tertiary and industrial sector during the year 2013. Financial mechanisms

The proposal of the finance mechanism jointly worked out by UNEP and the ANME consists in granting:

• A subsidy of 70% of the cost of the studies with a ceiling of 70,000 DT on the resources of the FNME;

• A subsidy of 30% of the capital cost with a ceiling of 150 DT/m2 on the resources of the FNME;

• An extra subsidy of 25% with a ceiling of 150 DT/m2 on the resources of the Italian funds through the UNEP;

• A subsidy of the expenses of maintenance over 4 years beyond the year of guarantee;

• An allowance of two points of interest rate on the appropriations granted by the commercial banks for the benefit of hotel projects.

2.3. Industrial PROSOL

Since 2010, this solar process heat program has been developed with the support of Italian Cooperation (IMELS and MEDREC) and UNEP. It aims to install 30,000 m2 in the industrial sector during the period 2010 - 2016. This is a pilot phase for establishing a funding mechanism appropriate to the industrial sector, identifying barriers to the development and implementation of the first solar installations in industrial process in Tunisia. The first installation, 955 m2 in the textile sector, will be in operation by the end of 2013.

3. Market evolution of solar water heaters in Tunisia

The PROSOL Program creates a real change of scale in the market for solar water heaters in Tunisia. The typical indicators of development continue to advance for this market as the programs proceed.

3.1. Evolution of the achievements

Residential sector

It is clear from Figure 2 that PROSOL saw a clear progression during the first several years of its starting, before reaching an average rhythm of 80 000 m 2 per year of installed collector area since 2008. This is compared to an average of 7 000 m2 per year prior to its start.

Fig.2. Solar thermal achievement evolution in residential sector, Source ANME

Tertiary sector

Since 2009, for the tertiary sector about 14 000 m2 o f collectors on more than 25 hotels similar to those shown in Figure 3 are already installed. The annual average is roughly 3 000 m2 o f collectors per year. This is compared to an average of only 90 m2 per year of installed collector area until 2007.

Fig. 3. Solar thermal installation (a) Yadis hotel Djerba, 150 m2; (b) Djerba beach hotel 312 m2. Source ANME

3.2. Evolution of the industry and market

In the residential sector, the market evolution of SWH in Tunisia also generated significant growth in the industry which is currently made up of:

S 45 eligible suppliers including eight local manufacturers (versus only one manufacturer before the start of PROSOL);

S 1100 approved installers (versus 200 installers before the start of PROSOL, many untrained or

poorly trained); S 206 eligible models of SWH systems and/or collectors. In the tertiary and industrial sectors of PROSOL we have: S 16 Eligible Engineering consulting firms S 12 Eligible installation companies of solar station S 03 Eligible Offices of control S 50 Eligible models of collector

3.3. Growth of a local industrial fabric

At the level of industrial integration, the PROSOL developed a network of local manufacturers. These local manufacturers (eight factories) produce 70% of all solar water heaters installed in the program, the remaining 30% are imported from foreign countries including Europe.

3.4. Impact on job creation

Program PROSOL resulted in the creation of 3 000 jobs, because suppliers must contract with small local installation companies in each geographic area to ensure a better local service (information, council, maintenance of SWH during and after the period of guarantee, sensitizing).

3.5. The assessment of energy saving and emission reduction in greenhouse gas emissions linked to the development of the market for solar water heaters

The annual energy savings and avoided emissions of greenhouse gases are as follows:

Table 1. The assessment of energy saving and emission reduction in greenhouse gas emissions

Year 2004 2010 2016

Entire surface of collectors (x 1000 m2) 123 490 1000

Energy saving (Ktoe/y) 9 34 70

Subsidy of state avoided (mDT/y) 4.4 16.5 34

Emission Avoided (KTCO2/y) 24 90 185

4. Conclusion: Impacts and durability of the PROSOL approach

As a result of the success of the approach adopted by the program PROSOL, the same procedures were adopted to promote new sectors of renewable energies such as the electric PROSOL (photovoltaic solar roofs connected to the network).

In addition, the innovative "win-win" approach of PROSOL has persuaded various players of the importance of this program, which ensures its continuation and durability.

For the State, the financial support given to solar thermal energy does not result in additional budgetary outlay, since it is largely compensated by the amount of avoided existing subsidy given for the consumption of LPG for the heating of warm water;

For the banking sector, the implementation of the program PROSOL creates a large market of credit. This credit market is also of high quality, because of its security through the repayment of loans through the electricity bill;

For the suppliers, it is clear that the program PROSOL is a unique business opportunity, taking into account the volume of the market which it generates on the one hand, and the visibility which it offers to the suppliers and installers on the other hand;

For the consumer, the program allows him to improve the quality of his hot water service all the while using payment terms which are particularly advantageous. According to the investigation of customer satisfaction carried out by a specialized office, 87% of the customers are completely satisfied with the use of SWH;

Finally, the ANME plays an important role of regulation and control in order to preserve the interests of all the actors by a quality approach called QUALISOL and a standard based on Solar Keymark which the ANME is setting up in collaboration with the various actors. This approach aims to:

• Protect the purchaser from poorly manufactured or poorly installed SWH;

• Organize the SWH sector and protect the market against the importation of products of poor quality not meeting international standards;

• Protect and assist local industry in its development;

• Allow industry to export products in conformity with the international standards.