National targets published in 2009 are to reach a 10% (4% excluding biomass) RE share in primary energy consumption by 2010. Expert studies state that in 2030, a 6.5% share (excluding biomass) will be achieved. Tunisia signed the statute of the International Renewable Energy Agency (IRENA) in April 2009. Energy policy with regard to renewable energies and energy efficiency is drafted mainly in the Four Year Programme for Energy Management 2008 – 2011. Expected consequences of this strategy include: a reduction of the subsidies granted by the state to the energy sector (in 2007, Egypt and Tunisia announced a plan to phase out energy subsidies), a reduction of CO2 emissions, and future profits from the Clean Development Mechanisms.In 2008, Tunisia’s National Agency for Energy Conservation released the Renewable Energy and Energy Efficiency Plan. Besides contributing to the above mentioned 10% target, this program is expected to result in a 20% reduction of energy demand by 2011.The main renewable capacity developments are expected to be 180 MW of wind energy, by 2011. The government further aims to increase the installed PV energy capacity to 740.000 m2 in 2011. Currently, about 300.000 m2 of PV panels have been installed. Large wind projects are currently being developed, or are in the application process. EE is recognised as important, and is being addressed in energy policies. Public interventions via financial support from the state and the mobilisation of international financial resources have been decisive in the development of energy conservation in Tunisia.Law No. 2004-72 on the rational use of energy defines the sensible use of energy as a national priority, and as the most important element of an effective policy for sustainable development.The law states three principal goals: energy saving, the promotion of renewable energy sources, and the substitution of forms of energy currently used for renewable/sustainable options, wherever this offers technical, economic and ecological benefits.Since 2005, and with the adoption of above mentioned law and the creation of a national energy fund (subject to the Law N° 2005-106), Tunisia has set the political framework to increase energy efficiency and develop renewable energy sources.De-carbonisation of the energy sector and the de-coupling of economic growth and GHG emissions have occurred.Under the 2008 Renewable Energy Plan, a major effort was planned to develop renewable energy applications as a means for rural electrification, and for use in the agricultural sector. The specific objectives that were defined are as follows:- Installation of 63 pumping stations and water desalination,- Installation of 200 water pumping stations for irrigation systems by hybrid,- Equipment of 200 farms with biogas units for domestic use,- Installation of two industrial units connected to the network for the combined heat and power from biogas.Specifically for rural electrification:- Electrification of 1,000 rural households by hybrid systems,- Electrification of 1,700 rural households by PV systems,- Electrification of 100 farms and tourist centers by hybrid systems.The 2010 Energy Efficiency and Biomass Project, in collaboration with the World Bank, seeks to develop biomass energy sources as an alternative to fossil fuels in the country, through:(i) the promotion of energy efficiency/cogeneration through facilitation to disbursement of existing WB EE/Cogeneration credit line to commercial banks, and(ii) the development of biomass potential with implementation of a pilot project and capacity-building activities through technical assistance, direct investment funding and capacity building,Decree 2009-262 establishes financial incentives with a range of options for the introduction of renewable energy in rural and agricultural facilities. Grants are paid to the supplier of the equipment after installation. For electricity generation in agriculture, a grant of 40% of the investment cost, with a maximum project cost of 20,000 TND, is available for lighting and water pumping in rural areas when make use of solar or wind energy. Financial assistance is available for biogas through a grant of 40% of the investment cost, also with a 20,000 TND project ceiling, for the production of biogas in farms, and 20% subsidy of the investment cost with a ceiling of 100,000 TND is offered for combined heat and electricity from biogas plants. For solar buildings, a subsidy of 30% of the investment is offered with a maximum of 3,000 TND/kW and 15,000 TND/house.