Algeria Energy Situation

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Overview

People's Democratic Republic of Algeria
 
Flag of Algeria.png

 
Location Algeria.png

Capital

Algiers (36°42′N 3°13′E)

Official language(s)

Arabic

Government

Semi-presidential republic

President

Abdelaziz Bouteflika

Prime Minister

Ahmed Ouyahia

Total area

2,381,741 km2

Population

35,423,000 (2010 estimate)

GDP (nominal)

$158.969 billion

GDP Per capita

$4,478

Currency

Algerian dinar (DZD)

Time zone

CET (UTC+01)

Calling code

+213

Algeria is located in North Africa and is bordering Tunisia and Libya in the east, Niger and Mali in the south, and Mauritania, Western Sahara, and Morocco in the west. In the north, Algeria’s vast coast of over 1.200 km extends to the Mediterranean Sea. Being part of the Maghreb, Algeria is furthermore considered to be a part of the MENA-region. With its more than two million km2 of national territory, Algeria is by far the largest North African country. However, most of its national territory is being occupied by the Sahara, which thus explains the population of roughly 33 million people.[1] This is also expressed in the arrangement of population density: 90% of the population is located in the north.[2] The mild Mediterranean climate coming from the coast is being replaced by a dry desert climate while moving south. The official language is Arabic, although French can be considered to be a common lingua franca, whereas in some areas Berber dialects can be common as well.[3] Having a parliament that consists of a national assembly and a senate, Algeria is a republic with Abdelaziz Bouteflika, who has been reelected with 90.2% of votes in 2009,[4] as its president since 1999.[5] Ethnic groups are made up of a vast majority of Arab-Berber (99%). However, most Algerians identify themselves with their Berber heritage rather than their Arab one.[6] The state religion is Sunni Muslim, likewise represented by a vast majority, while Christians and Jews make up less than 3% of the population.[7]
Minerals that can be found in this region are amongst others oil, gas, iron, and lead.[8] Together with agricultural goods, they make up the majority of export goods. Furthermore, they are the reason, why Algeria is part in international economic conglomerates, such as the OPEC or the OAPIC. Algeria’s gross domestic product (GDP) has been constantly rising in the last couple of years, bringing it to the approximate amount of $160 billion in 2010. The GDP per capita is hence about $7.3.[9]
Algeria has a number of transnational issues to deal with, including an international dispute with the Moroccan administration of Western Sahara and illegal schemes in form of smuggling, human trafficking and forced labor.[10]

 

Energy situation

Energy Supply

In 2008, Algeria has produced a total amount of 162,044 ktoe of energy, which is about 1,884,571 GWh. Its main energy source is crude oil (54.4%), followed by gas (45.5%). In comparison, the numbers concerning the renewable energies are much smaller and close to zero. Other energy sources, such as coal, nuclear power or heat are in fact zero, thus giving an impression that Algeria has quite a unilateral energy landscape. Published by the International Energy Agency (IEA), the numbers below offer more detail to Algeria's energy production:

Total Energy Production (2008)

Energy Source

in ktoe

in %

Coal and Peat

0

0

Crude Oil

88,187

54.4

Oil Products

0

0

Gas

73,783

45.5

Nuclear

0

0

Hydro

24

0.02

Geothermal, solar, etc.

0

0

Combustible renewables and waste

49

0.03

Electricity

0

0

Heat

0

0

Total1

162,044

Table 1: Total Energy Production of Algeria (2008)
Source: International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Last Updated: - , Accessed: September 19, 2011, URL: ">http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ">http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ   


Taking Table 1 above into consideration, Table 2 ("Total Primary Energy Supply") offers quite a similar picture. It might yet seem suprising, that gas is now the main energy source with more than 60%, while oil only makes up 37% of the energy supply. This curiosity can be explained by the massive amount of crude oil (-55,002 ktoe) and oil products (-19,334 ktoe) Algeria is exporting and thus decreasing the amount of available oil.[11] Plenty of gas is being exported, as well (-51,259 ktoe).[12]

Total Primary Energy Supply (2008)

Energy Source

in ktoe

in %

Coal and Peat

755

2.0

Oil

13,721

37.0

Gas

22,524

60.8

Nuclear

0

0.0

Hydro

24

0.01

Geothermal, solar, etc.

0

0.0

Combustible renewables and waste

49

0.1

Electricity

-4

-0.1

Heat

0

0.0

Total1

37,069

Table 2: Total Primary Energy Supply of Algeria (2008)
1Total may not add up due to roundings.

Source: International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Accessed: September 19, 2011, URL: ">http://www.iea.org/stats/balancetable.asp http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ">http://www.iea.org/stats/balancetable.asp? COUNTRY_CODE=DZ

  

Electricity

In the course of the last decade, electricity production rose from 26,250 GWh in 2001 to a predicted increase to up to 46,000 GWh in 2010.[13] It appears that this development is mainly due to the economic growth that Algeria has experienced along the way.[14] As Table 3 shows below, main source for the production of electricity is gas with a relativ percentage to the total amount produced of over 97%. Although there are other minor sources of electricity, such as oil and hydro-power, a similar picture as seen in the tables above is being created, suggesting a rather one-sided production and supply (in this case) of electricity.

Electricity Production and Supply (2008)

Energy Source

in GWh

in %2,3

Coal

0

0.0

Oil

792

2.0

Gas

39,161

97.3

Biomass

0

0.0

Waste

0

0.0

Nuclear

0

0.0

Hydro

283

0.7

Geothermal

0

0.0

Solar PV

0

0.0

Solar thermal

0

0.0

Wind

0

0.0

Tide

0

0.0

Other sources

0

0.0

Total Production

40,236

100.0

Imports

274

0.7

Exports

-323

-0.8

Domestic Supply

40,187

99.9

Table 3: Electricity Production and Supply of Algeria (2008)

2In relation to the amount given by "Total Production"

3Total may not add up due to roundings and overlapping percentages.

Source: International Energy Agency, ©2011, "Electricity/Heat in Algeria 2008", Last updated: - , Accessed: September 20, 2011, URL: http://www.iea.org/stats/electricitydata.asp?COUNTRY_CODE=DZ

 

Energy Consumption

Compared to 2008, Algeria has increased its energy consumption in 2009 by almost 5%.[15] In 2008, Algeria's total final consumption (TFC) added up to 23,447 ktoe units, equal to 272,688.6 GWh.

 

TFC of Energy (2008)

Sector

Consumption in GWh

in %

Industry

51,381.3

18,8

Transport

79,770.2

29.3

Residential

117,323.4

43.0

Non-energy use

24,213.7

8.9

TFC

272,688.6

100

Table 4: Algeria's TFC of Energy (2008)

Source: International Energy Agency, ©2011, "Electricity/Heat in Algeria 2008", Last updated: - , Accessed: September 20, 2011, URL: http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ


Energy demand  

Between 1963 and 2007 – not even half a century of development – Algeria chronicles an enormous rise in the demand of electricity. Whereas electricity consumption in the early 1960’s was less than a single TWh, it has risen to 30 TWh in 2007.[16] However, the boom in consumption has been quite stable recently, slowly rising by about 5.6% per annum.[17] In view of these facts, the Algerian Ministry of Energy and Mining (MEM) has proposed two possible future scenarios. One prevision is a rather moderate one, projecting a steady but fair continuation of the current trend in the rise of energy demand, assuming that the economy is developing in a similar slow and controllable way.[18] The second and rather drastic forecast reckons with a strong and lasting reanimation of the economy, thus challenging the task to meet future energy demands.[19] Depending on the scenario, energy needs could bounce up between 7.8% and 9.1% until 2017.[20]

Electricity

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General Energy policy, Energy strategy

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External links

Reference list

  1. Auswärtiges Amt (German Ministry of Foreign Affairs), Last Updated: October, 2010, Access: September 16, 2011, URL: http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01-Nodes_Uebersichtsseiten/Algerien_node.html
  2. Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/
  3. Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html
  4. Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html
  5. Auswärtiges Amt (German Ministry of Foreign Affairs), Last Updated: October, 2010, Access: September 16, 2011, URL: http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01-Nodes_Uebersichtsseiten/Algerien_node.html
  6. Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html
  7. Auswärtiges Amt (German Ministry of Foreign Affairs), Last Updated: October, 2010, Access: September 16, 2011, URL: http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01-Nodes_Uebersichtsseiten/Algerien_node.html
  8. Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/
  9. Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html
  10. Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html
  11. International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Last Updated: - , Accessed: September 19, 2011, URL: http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ
  12. International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Last Updated: - , Accessed: September 19, 2011, URL: http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ
  13. Ministère de l'Energie et des Mines (MEM), Last Updated: - , Accessed: September 20, 2011, URL: http://www.mem-algeria.org/francais/index.php?page=perspectives-de-developpement
  14. Ministère de l'Energie et des Mines (MEM), Last Updated: - , Accessed: September 20, 2011, URL: http://www.mem-algeria.org/francais/index.php?page=perspectives-de-developpement
  15. Ministère de l'Energie et des Mines (2010), "Bilan Energetique National de l'année 2009", pg. 19.
  16. Commission de Régulation de l’Electricité et du Gaz (CREG) (2008), „Programme indicatif des besoins en moyens de production d’électricité 2008 – 2017“, pg. 10.
  17. Commission de Régulation de l’Electricité et du Gaz (CREG) (2008), „Programme indicatif des besoins en moyens de production d’électricité 2008 – 2017“, pg. 10.
  18. Commission de Régulation de l’Electricité et du Gaz (CREG) (2008), „Programme indicatif des besoins en moyens de production d’électricité 2008 – 2017“, pg. 10-11.
  19. Commission de Régulation de l’Electricité et du Gaz (CREG) (2008), „Programme indicatif des besoins en moyens de production d’électricité 2008 – 2017“, pg. 10-11.
  20. Commission de Régulation de l’Electricité et du Gaz (CREG) (2008), „Programme indicatif des besoins en moyens de production d’électricité 2008 – 2017“, pg. 11.