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Friday 21 October 2011

After The Revolution: Tunisia Creates a green industry to generate Green Jobs


It is important to remember that there are important reasons to promote renewable energy; it contributes to energy security and has a beneficial impact on the environment. 


On the other hand, some of these reasons are purely economic:
• Industrial competitiveness.
• Development of a strong green industry for the local market and exportation.
• Regional Economic Development.
• Job creation.

Employment positions created are spread over a range of sectors, which are mainly private entities:
• the development and manufacturing.
• The construction and installation.
• The operation and maintenance.
• The strategy of export of goods and services worldwide.

In the case of Europe, job creation falls in the range of 1.66 million. The estimations say that 2.463 million jobs are going to be created by the year 2020.

In the case of Tunisia, the annual increase in the energy needs is within the range of 7%, which is the equivalent of 200 megawatts per year. This increment requires a heavy investment from the state which can be amounted to hundreds of millions dinars. 

While trying to discuss this issue, some people have proposed the following:

To develop a green industry that can generate thousands of job positions and reduce the Tunisian government commitments, 50 of the 200 megawatts of annual growth have to be generated from private Tunisian companies to encourage them to produce green and renewable energy only in areas that are identified by the State. 

The 50 megawatts will take the form of small plants of a few megawatts each, dedicated to industrial zones (these zones don’t exist yet, but they are coming soon HOPEFULLY). In these regions, the State will encourage the installation of engineering offices, installers and maintenance services for these plants.

STEG (Tunisian Society of Electricity and Gas) will handle the distribution of this energy and give a well-studied “Feed In Tariff”-“FIT” that will allow private businesses to recover their investment and profit over the next medium term. Currently, the STEG is reluctant to apply a FIT beneficial for private investors in Tunisia which is the main reason why the renewable energy industry could not take off. According to their analysis, the STEG is being reasonable when thinking about the costs of KW and the state compensation when it fails in the long run. 

In this case, the state will pay more by:

a) The blocked funds invested by the State in areas of conventional energy, which could be invested in other sectors.
b) The positions of potential jobs are to be lost due to the non-development of the green industry with its integrated components of consultants, installers, labor, etc...
c) With the price of a barrel that can reach $ 200 one day, the bill the state will pay will be greater than the premium subsidy FIT it gives to a private company to develop a green industry.

On the other hand, this approach has enabled the success of this industry in Germany (with 300 000 positions and jobs created), especially in the disadvantaged regions of the former GDR. The green energy industry employs mainly graduates with immediate solutions to youth employability and future opportunities for economic and technological influence of Tunisia on the international stage.

So what do you think? Will the political and social Tunisian revolution expand to cover the renewable energy? And if it does, will it be a success? Stay tuned!

Basma - Green Energy International Correspondent - 21/10/11

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