How a small country joined the global financial system as a lender of electricity?
A few years ago, the Republic of Nicaragua (a small Central American country with 2080$ GDP per capital of population) was almost entirely dependent on fossil fuels to generate its electricity. With its poor hydrocarbon resources, this small country with high poverty rates was therefore highly dependent on imports to satisfy the growing needs of a fast-growing economy.
Today, Nicaragua is taking greater advantage of its important natural resources. The share of renewable energy has increased from 24.6% of the electricity mix in 2002 to 81% in 2020, reducing the share of fossil fuels to 19%. The largest contributor is sugar cane-based biofuel with 33.2%, followed by geothermal energy with 24.6%, wind power 22.5%, solar with 0.5% and hydro with 0.26%.
HOW?
It was a simple road map that the government has developed, one is the country’s natural abundance (19 volcanoes which is a reliable source of geothermic heat) second is trying to reduce energy dependency.
The government started by reviewing laws related to energy field and in particular they have provided tax breaks, tax credits and many other incentives for companies to green a country that used to be dominated by polluting fossil energies, also, they created an investment promotion agency with private -sector participation promoting incentives for clean energy development and exploitation, and increased international cooperation. And despite the obstacles to development linked to the legal and bureaucratic systems, renewable energy continues to develop and by the end of 2019, renewable energy was the source of more than 75% of the country’s electricity production in Nicaragua.
Isn’t it time for Tunsia to take off this way?
According to data published Sunday, May 3, 2020 by the Tunisian Ministry of Energy, Mines and Energy Transition: concentrated electric power (wind, solar and hydropower) represents 6.6% of the total power, against 3.2% in 2010 which still so low comparing to other countries.
The Tunisian solar plan foresees a coverage rate of renewable energies (solar and wind) of 30% by 2030, with an intermediate target of 12% in 2020, while today (2020), this rate does not exceed 4%.
Tunisia has the potential to develop a “green economy” based on cleaner energy sources, while reducing social inequalities. Thus, the population needs more equitable and environmentally sustainable long-term growth. The objective is not to make a radical change overnight but to move in this direction and gradually build a regional consensus on investments, public policies, subsidies and regulations to promote the emergence of a green economy and establish partnerships with countries that have already moved in this direction.