The USAID seeks technical assistance to support the implementation of their Power Tunisia Activity, which seeks to advance self-reliance in Tunisia by strengthening the country’s institutional capacity to manage, operate, and maintain a modern, diversified and financially sound electricity system.

Tunisia faces significant challenges in the energy sector. Tunisia relies almost entirely on fossil fuels to meet its domestic energy needs. Today, around 97% of Tunisia's electric energy is derived from natural gases (hydro-carbon), with 65% of the natural gases imported from Algeria at inflated rates, despite being a relatively small natural gas and oil producer. Furthermore, hydrocarbon licensing in Tunisia has stalled and existing production has not kept pace with increasing demand.

The government has adopted a energy transition framework for 2030 which is based on the following priority areas:

1. development of national hydrocarbon resources
2. strengthening the refining, transporting, and distributing of petroleum products
3. development of electricity production and strengthen electricity interconnections with different countries
4. integration of 30 percent renewable energy by 2030 and reducing the demand for primary energy, which consists of unconverted or original fuels, by 30 percent using energy efficiency techniques 

The USAID has taken on many projects in Tunisia to help achieve their sustainable development goals. However, the Tunisia Power Activity aims to assist Tunisia to meet the fourth priority of the Energy Transition Plan by working with key stakeholders to explore innovative methodologies to reduce financial and electricity losses, to pilot advanced technologies to achieve renewable energy (RE) and energy efficiency (EE) goals set out by the government, and to strengthen the foundations of a new regulatory authority in the electricity sector.

The USAID Power Tunisia Activity seeks to advance self-reliance in Tunisia by strengthening the country’s institutional capacity to manage, operate, and maintain a modern, diversified and financially sound electricity system. The activity’s theory of change is that improved electricity sector performance, diversified energy sources, and a stronger regulatory framework will help Tunisia achieve its renewable energy and energy efficiency goals.  

To achieve its goals, USAID Power Tunisia will partner with key government stakeholders as well as leverage the knowledge, innovation and finances of the private sector to deploy new technologies, expand the Tunisian smart grid, and help lower the cost of electricity for consumers.

The activity has three core objectives:

• Identify the sources of technical losses, procure and install selected equipment to reduce losses and train STEG on loss reduction strategies, including topics such as loss analytics, strengthening utility business processes and procedures, ICT systems, customer regularization, theft reduction, community engagement, utility business models and human resources practices. 
• Create a digital lab for STEG to pilot the interplay of new technologies and develop a cybersecurity needs and resilience plan to assess system vulnerabilities.
• Provide capacity building (via training or other) to implement recommended reforms to improve the financial viability of STEG
• Assist and advise ANME staff to estimate energy savings opportunities to prioritize roll-out of policy, enforcement, resource allocation, and funding required for private and public sector in order to achieve 30% primary energy reduction.
• Assess the best regulatory mechanisms for implementing the energy efficiency and demand response resources identified. 
• Increase ANME’s capacity to monitor, verify, and enforce energy efficient standards and labeling regulations to prevent inefficient equipment and products from entering the Tunisian market.
• In collaboration with ANME, develop educational and awareness campaigns to further program results and disseminate such educational campaign messages online. 

• Assist and advise ANME staff to estimate energy savings opportunities to prioritize roll-out of policy, enforcement, resource allocation, and funding required for private and public sector in order to achieve 30% primary energy reduction.
• Partner with at least two cities to improve the compliance of building code implementation by providing training, developing tools and establishing verification and enforcement procedures within the Tunisia local government context.
• Engage with local and national government agencies and industry stakeholders to define the targets and work toward adoption of the roadmap. 
• Develop cost-effective approaches to increase energy productivity in the industrial sector to complement the ANME Industry Action plans and address energy efficiency investment barriers across the industrial sector. 

• Provide technical assistance to operationalize the independent Regulatory Authority for the electricity sector once created, by strengthening its capacities and providing it with the expertise and tools necessary to make it functional and operational.

• Conduct at least 5 feasibility studies for new renewable energy sites identified in coordination with the government to enable access to additional data and information for potential bidders in RE regime procurements. 
• As part of the feasibility studies, conduct an assessment of social impact with recommendations for inclusive community engagement.
• Conduct a grid integration study to inform other grid integration activities.
• Create services and products that educate banks and financial institutions about the
  viability of renewable energy and foster RE deployment such as RE lines of credit
  and credit enhancement products
• Identify potential opportunities for partnering Tunisian institutions with relevant
  U.S. institutions and utilities to build the capacity and growth of the Tunisian green
  hydrogen market. 
• Conduct training and other capacity building activities for key power sector
  stakeholders on green hydrogen knowledge and tools including hydrogen storage,
  fuel cell technologies, safety, codes and standards, and the potential role of
  hydrogen in achieving deep decarbonization goals and NDC goals. 

• Facilitate partnerships with the private sector to scale renewable energy, energy efficiency technology, net-zero energy construction, and pilots
• Promote advanced technologies, approaches, and other opportunities in the development and implementation of innovative solutions that contribute to the energy sector 
• Collaborate with local partners in the design, construction, operation and verification processes to implement such Pilot Projects. 
• Stakeholder engagement should include private sector, Tunisian government, new and under-utilized partners, donors and multilateral banks such as the EBRD, KFW, and World Bank, and coordination with US. government activities.

USAID/Tunisia anticipates awarding one contract as a result of this solicitation, covering an estimated period of 5 years. The total estimated amount of this contract (costs and fee) is in the range of $32,000,000 to $37,000,000 for the base period and in the rage of $20,000,000 to $23,000,000 for the option period.