Renewable energy sector

Algeria has launched an ambitious program for the development of renewable energies and energy efficiency (RE). This program is based on the development of renewable resources with a view to reaching a new sustainable energy era.

The RE program is national in nature and affects the majority of business sectors. Its implementation is placed under the aegis of the Ministry of Energy and Mines and remains open to public and private operators.

The updated renewable energy program consists of installing a power of renewable origin of the order of 22,000 MW by 2030 for the national market, with the maintenance of the export option as a strategic objective, if the market conditions allow it.

A massive use of renewable energies is envisaged in Algeria, because the share of these energies in the national energy balance for the coming years has reached a high level of energy demand, particularly for electricity. In addition, global environmental pressure on the economic and social field is exerted through international conventions, standards and binding directives, particularly in the field of fossil fuels for the use of renewable energies.

The renewable energy production projects dedicated to the national market for the period 2021 - 2030:

The development of the electrical interconnection between the North and the Sahara (Adrar), will allow the installation of large renewable energy plants in the regions of In Salah, Adrar, Timimoune and Bechar and their integration into the national energy system. By this time, solar thermal could be economically viable.

Algeria's strategy in this area aims to develop a genuine renewable energy industry associated with a training and knowledge capitalization program, which will ultimately make it possible to employ local Algerian engineers, particularly in the field of engineering and of project management. The renewable energy program, for the electricity needs of the national market, will allow the creation of several thousand direct and indirect jobs.

The renewable energy development program consistency

The consistency of the renewable energy program to be carried out for the national market over the period 2015-2030 is 22,000 MW, broken down by sector as follows:

  • Solar Photovoltaic: 13,575 MW
  • Wind power: 5,010 MW
  • Solar thermal: 2000 MW
  • Biomass: 1,000 MW
  • Cogeneration: 400 MW
  • Geothermal energy: 15 MW

On the regulatory front, the Ministry of Energy adopted a series of support measures aimed at the development of renewable energies connected to the networks, through the establishment of a favorable legal framework and a National Fund for Energy Management, for Renewable Energies and cogeneration, CAS n ° 302-131 (FNMEERC) which is funded annually with 1% of the oil royalty and the product of certain taxes (such as 55% of the tax on flaring activities).

The legal framework, put in place in 2013, during the 1st phase of the national renewable energy development program launch, was based, in particular, on the mechanism of guaranteed purchase tariffs (Feed-in Tariff), which is less and less practiced in developed countries.

This system guarantees renewable energy producers to benefit from tariffs granting them a reasonable return on their investment over an eligibility period of 20 years.

The additional costs generated by these tariffs will be supported by the FNMEERC as diversification costs.

The incentives provided by various laws are :

  • Acquisition and provision of eligible land for renewable energies plants implementation ;
  • Support throughout the process of acquiring the necessary authorizations;
  • Identification of the potential of all the regions concerned by renewable energies;
  • The construction of pilot projects in each sector.
  • Creation of bodies and laboratories for certification and quality and performance control of components, equipment and processes relating to the production of electricity from renewable sources and / or cogeneration systems;
  • Support, through a plan for technicians recruitment and training, by vocational training institutes and the association of universities and national research organizations in the research and training of engineers.

Renewable energy National program

Energetic Efficiency

The energy efficiency program obeys Algeria's willingness to promote a more responsible use of energy and to explore all means to preserve resources and systematize useful and optimal consumption.

The objective of energy efficiency is to produce the same goods or services, but using as few energy as possible. This program includes actions that favor the recourse to forms of energy, best suited to different uses and requiring changes in behavior and improvement of equipment.

This program provides, for the introduction of energy efficiency, measures in three sectors : of building, transport and industry and also the encouragement of a local industry creation for the manufacture of efficient lamps, solar water heaters. , thermal insulation by encouraging local or foreign investment.

Energy efficiency is expected to play an important role in the national energy context, characterized by strong growth in consumption driven, in particular, by the domestic sector with the construction of new housing, the construction of public utility infrastructure and revival of the industry.

The program focuses on consumption sectors that have a significant impact on energy demand. These are mainly construction, transport and industry.

  • For the building sector

The establishment of thermal insulation local industry and high-performance equipment and appliances (solar water heaters; energy saving lamps) is one of the assets for energy efficiency development in this sector.

Globally, more than 30 million TOE will be saved, by 2030 distributed as follows:

  1. Thermal insulation: the objective is to achieve a cumulative gain estimated at more than 7 million TOE;
  2. Solar water heater: the objective is to achieve energy savings of over 2 million TOE;
  3. Low consumption lamp (LBC): The expected energy savings by 2030 are estimated at nearly 20 million TOE;
  4. Public lighting: the objective is to achieve energy savings of nearly one (01) million TOE by 2030 and to reduce the energy bill of authorities.

 

  • For the transport sector:

The program aims to promote the most available and least polluting fuels, in this case, LPGc and CNG: the objective being to enrich the fuel supply structure and to contribute to reducing the share of diesel oil, in addition to the beneficial effects on health and environment. This would result in a saving of more than 16 million toe by 2030.

  • For industry sector :

For this sector, more than 30 million TOE will be saved.

For more energy efficiency, it is planned:

  • The generalization of energy audits and control of industrial processes which will make it possible to identify substantial sources of energy savings and to recommend corrective action plans;
  • Encouraging operations to reduce the overconsumption of industrial processes, through state support for the financing of these operations.

In summary, the implementation on the ground of the national energy efficiency program will gradually reduce the growth in energy demand. Thus, the cumulative energy savings achieved would be of the order of 93 million TOE, of which 63 million TOE by 2030 and the rest beyond this horizon.

This shows the importance of this energy saving programme, which involves the implementation of a number of measures, including the involvement of the parties concerned, including public and private industry and the adaptation of the legal framework governing energy efficiency.

 

National Agency for Investment Development

The Algerian Investment Promotion Agency –AAPI– is a public institution of an administrative nature, endowed with legal personality and financial autonomy.

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