Difference between revisions of "Algeria Energy Situation"

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Revision as of 08:36, 22 September 2014

Algeria
Flag of Algeria.png
Location _______.png

Capital:

Algiers

Region:

Coordinates:

28.0000° N, 2.0000° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

2,381,741

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

44,903,225 (2022)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

25 (2022)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

194,998,449,769 (2022)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

4,342.64 (2022)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

99.79 (2021)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

-177.12 (2014)

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

99.98 (2014)

Source: World Bank




Introduction

Algeria is located in North Africa and borders 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 37.9 million people in 2013.[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.[1] 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.[3] The state religion is Sunni Muslim, likewise represented by a vast majority, while Christians make up less than 3% of the population.[1]
Minerals that can be found in this region are amongst others oil, gas, iron, and lead.[5] 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. While the main export partners in 2011 were the US (20.6%), Italy (14.2%), Spain (9.8%), France (8.9%), Netherlands (6.7%), Canada (6.1%), and Brazil (4.4%), the main import partners were France (15.1%), China (10%), Italy (9.9%), Spain (7.3%), Germany (5.4%) and the US (4.6%).[3] Algeria’s gross domestic product (GDP) has been constantly rising in the last couple of years, bringing it to the approximate amount of $206.5 billion in 2012. The GDP per capita is hence about $5,659.[1]
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.[3]

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Energy Situation

The International Energy Agency (IEA) states that the average energy supply per individual (TPES/pop. = toe/capita) in 2009 as 1.14 toe, which was much less than the worlds average (1.80 toe). Another statistic that seems to reveal a similar deviance is the consumption of electricity per individual (kWh/capita), which is about 973 kWh (compared to the worlds average of 2,729 kWh).[6][7] The presumption is that these low numbers are not due to the reasonable energy use of Algeria's population, but due to the insufficient accessibility of electricity. An indiciation to support this hypothetical statement is the number of households considered to be clients of Sonelgaz: 6,525,999.[8] Considering the average african household size of 4.7 members,[9] this number mounts up to 30,672195.3 mio people - as opposed to the total population of about 34.5 million people. Following this logic, the concrete, explicit access rate would be around 89%. Obviously, this is nothing but a rough and approximate estimation due a lack of official numbers. Nevertheless, it offers a first impression on how to evaluate Algeria's access rate. However, it shall not lead to hasty conclusions, for this phenomenon can be explained by a number of potential factors, such as the fact that in 2009 34% of Algeria's population was considered to be part of the rural population, implying much more rudimentary living standards as compared to the urban population.[10] The Algerian state and Sonelgaz are showing quite some effort to supply rural areas with urban-quality services. According to Renewable Energy & Energy Efficiency Partnership (REEEP) over 98% of the population have used the service provided by the extensive network.[11] Although the network has already undergone several exentensions recently, an extension of yet another 5% is planned for the upcoming years.[12]

Network access is generally controlled by CREG. Discriminatory access is granted to independent power producers (IPP's).

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Energy Supply

In 2011, Algeria has produced a total amount of 145,846 ktoe of energy, which is about 6106 PJ and 1,696,190 GWh. Its main energy source is crude oil (52.1%), followed by gas (44.8%). 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:

Table 1: Total Energy Production of Algeria (2011)[13]:

Energy Source in ktoe in PJ in %
Coal and Peat 0 0 0
Crude Oil 76,198 3,190 52.24
Oil Products 0 0 0
Gas 69,589 2,914 47.71
Hydro 43 0.8 0.029
Geothermal, Solar etc. 0 0 0
Biofuel and waste 16 0.7 0.011
Electricity 0 0 0
Heat 0 0 0
Total1 145,846 6,106

The total primary energy supply in Algeria which is outlined in table 2 was 41,852 ktoe in 2011 which translates to 1,752 PJ or 486,739 GWh. Like the national production, oil accounts for the largest amount of primary energy supply in Algeria with 36,220 ktoe, followed by gas with 24,783 ktoe. Algeria is a ressource exporting country. In 2011, 40,163 ktoe of crude oil, 20,954 ktoe of oil products and 44,806 ktoe natural gas were exported.[13]


Table 2: Total Primary Energy Supply of Algeria (2011)[13]:

Energy source in ktoe in PJ
Coal and Peat 296 12
Oil 36,220 1,516
Oil Product -19,494 -816
Gas 24,783 1,038
Nuclear 0 0
Hydro 43 0.63
Geothermal, solar, etc. 0 0
Biofuel and waste 16 0.67
Electricity -12 -0.5
Heat 0 0
Total1 41,852 1,752

1Total may not add up due to rounding.


Gas in particular appears to be one of the main energy sources for a somewhat mid-term solution. According to the IEA projections, Algeria will have an average growth rate of about 2,5% in natural gas production until 2035.[14] Most gas production is expected to be in the form of conventional gas,[15] as Algeria (together with Nigeria) is expected to be the leading protagonist in gas production growth in Africa,[16] augmenting export rates once again, after they had dropped in 2009.[17] In addition, the technology of liquefied natural gas (LNG) will be installed and exploited by 2013. According to the IEA, two major liquefied natural gas (LNG) plants are planned for Algeria - Skikda and and Gassi Touil. Both projects envision a starting point of construction in 2013.[18]

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Energy Consumption

Algeria's total final consumption (TFC) has steadily been increased in recent years. While in 2010 the energy consumption added up to around 31.600 ktoe units (367,508 GWh), energy consumption increased in 2011 by 7,4% and accounted for 34,000 ktoe units (395,420 GWh). Taking a closer look to various sectors, the sector residential consumes the most energy, namly 40.3%, follwed by the transport secor (36.5%) and the industry 23.2. The excect figures are outlined in the table below.[19]


Table 4: Algeria's TFC of Energy (2011)[20]:

Sector

Consumption in ktoe

Consumption in GWh

in %

Industry

7,900

64,314.8

23.2

Transport

12,400

100,949.8

36.5

Residential

13,700

111,533.2

40.3

TFC

34,000

276,797.8

100

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Gas Pipelines

Algeria can be considered to be one of the main exploiters and exporters of gas in the MENA-region. Especially Europe profits from Algeria's great amounts of gas (that consist mainly of conventional gas and to a limited extent of natural gas) being transported via gas pipelines.[21]

The Algerian gas transport network consisted of 13,826 kilometres of pipelines at the end of 2011, which is 19% longer than in 2010.[22]

One of the only two major pipeline connections that have been commissioned since 2009 is the MedGaz pipeline going from Algeria to Spain.[23] Another major project securing and easing Europe's constant gas supply by Algeria is planned for the year 2015 and stipulates a pipeline connecting Algeria and Italy (Gasdotto Algeria Sardegna Italia - GALSI).[24]

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Renewable Energy

Solar Energy

Algeria comes with 20 solar villages, of which the majority is in action and is contributing to the overall production of energy.[25] Solar energy is considered to be the most potential source of renewable energy, the most of which is being naturally collected in the Sahara region with 2,650 kWh/m2/year.[25] Nevertheless, solar energy makes up only a minimal amount of the total energy that is being produced in Algeria. The 35 TWh that energy production has reached by now is mainly based on the exploitation of natural gas.[25] According to Renewable Energy & Energy Efficiency Partnership (REEEP), the amount of produced solar energy is about 6.57 kWh/m2/day.[26] RCREEE states in 2012 that the total installed capacity of CSP is 25 MW.[27]

The renewable energy programme aims to create a solar energy industry. On the one hand the industrial integration of photovoltaic solar energy is supposed to be promoted to reach about 60% by 2013.[28] On the other hand, solar thermal energy is allegedly to experience an industrial integration of 50% by year 2020, starting with a series of studies concerning the manufacturing of the respective equipment between 2011 and 2013.[28] In practice, the Algerian government plans to establish several PV projects with a total capacity of 80 MWp by 2020. In the ensuing ten years an additional capacity of 200 MWp are to be achieved by 2030. Regarding the construction of solar power plants, projects with a total capacity of 150 MW are planed to be finished within the next two decades. Algeria has already built a hybrid power plant, Hassi R'Mel which has a total power capacity of 150 MW of which 25 MW account for CSP. In addition Algeria aims to construct solar thermal power plants with a total capacity of 1,200 MW between 2016 and 2020. Afterwards 500 MW should be achieved by 2023 and and addtional 600 MW until 2030.[28]

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Wind Energy

In past reports, the potential of energy gained by the exploitation of wind has been rated as very low.[29] The 2011 report however promotes a rather different attitude by the Ministry of Energy and Mines. The so far quite underestimated and neglected sector of wind energy is therein identified as a field of future study (by 2013), in order to soon be able to implement wind energy industry.[30]

According to the Renewable Energy and Energy Efficiency Program, Algeria intends to install a wind farm of 10 MW in Adrar till 2013. Afterwards two wind farms are plant which have a capacity of 20 MW each by 2015. In the long further studies should be undertaken in order to find sights where wind farms can be installes. Till 2013 Algeria aims to realize wind projects with a total capacity of 1,700 MW[28] which would account for 17% of the total installed capacity.[27]

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Biomass

Similar to wind energy, the potential of energy extracted from biomass is relatively low, according to the Algerian Ministry of Energy and Mines.[28] Having said that, the Ministry does not neglect the chance of producing and using biomass energy. In fact, it plans to implement experimental projects to approach yet another source of renewable energy.[31] Nevertheless, further information on this topic appear to be rather vague. Responsible for developing and implementing these research projects is the Center for Renewable Energy Development (CDER).
The REEEP estimates the potential of Biomass to be about 37,000 ktoe that can be gained by forest reserves.[25]

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Biogas

Biogas, considered to be a sub-category of biomass, is just like the biomass itself in quite limited use in Algeria. Although no official figures can confirm an extended use of biogas, REEEP asserts that in 2010, Algeria had "roughly 1,1330 ktoe of agricultural and municipal residues" available.[32]

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Hydro Power

Hydro Power represents yet another source of renewable energy that is considered to have lower potential. Although flows are estimated to be about 65 billion m3, limited precipitation and high evaporation constrict extensive usage of the ressource of water.[33] Recent evaluations showed that only 25 billion m3 can be used effectively.[34] Despite these facts, Algeria still comes with more than 100 dams and some dozens more that are already projected.[35]

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Other Renewable Sources

Another potential source of renewable energy is given by geothermal energy - energy generated and stored in the earth. Due to multiple hot springs located in Algeria that can be used for low-temperature geothermal applications, Algeria's energy potential (in the context of geothermal activity) is in the range of 700 MW.[36]


Electricity Situation

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.[37] However, the rise in consumption has been quite stable recently, slowly rising by about 5.6% per annum. According to CREG, there are two possible scenarios that the Algerian energy sector might be facing. On one hand there is the medium scenario predicting a rise in demand of about 7,800 MW, on the other hand there is the strong scenario predicting a rise of about 11,200 MW.[38] The first prediciton 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.[39] 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.[40] Depending on the scenario, energy needs could bounce up to spomething between 7.8% and 9.1% until 2017.[41]

Between 2001 and 2011, electricity production rose from 26,250 GWh [42] to 48,900 GWh.[43] Between 2010 and 2011 there was an increase of 8.2%. The maximum power demand was 8,606 MW, registered on 8 August 2011. This is an increase of 11.5% as compared to 2010. At the end of 2011, the installed capacity of electricity generation reached 11,524 MW, 10,926 MW of which was connected to the national transmission grid. Electricity sales increased by 8.7% to 38,900 GWh in 2011, as compared to 2010. The total number of customers rose in 2011 by 297,470 to 7,115,550.[44] It appears that this development is mainly due to the economic growth that Algeria has experienced along the way.[45]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.


Table 3: Electricity Production and Supply of Algeria (2011)[13]:


Energy Source in GWh in%2,3
Coal 0
Oil 2,816 2
Gas 47,906 97.7
Biomass 0
Waste 0
Nuclear 0
Hydro 502 0.7
Geothermal 0 0
Solar PV 0 0
Solar thermal 0 0
Wind 0 0
Tide 0 0
Other Sources 0 0
Total Production 51,224
Imports 657 0.9
Exports -799 -0.9
Domestic Supply 51,082

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

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


According to the CREG Rapport d'activité of 2010 and the Rapport d'activité of 2011, the percental share of electricity production among the state-run and independent producers (IPP) looks as follows:

Production sorted by operator in 2010[46] and 2011[47]:

Operator
% (2010)

% (2011)

Sonelgaz Production d'Electricité (SPE)

54

56

Sharikat Kahraba Hadjrat-Ennous (SKH)

21

20

Sharikat Kahraba Skikda (SKS)

13

12

Sharikat Kahraba Berrouaghia (SKB)

6

6

Kahrama

6

5

Solar Power Plant One (SPP1)

-

1

Sharikat Kahraba Terga (SKT)

-

0,16

CEVITAL

-

0,001

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Electricity Grid

According to the Wuppertal Institute for Climate, Environment and Energy, Algeria has an extensive AC network that spreads throughout the country.[25] In 2012 the total length of the transmission network was 23,802 km which was an increase of 6.29% in comparision to 2011.[48] Within this context, Sonelgaz is the transmission grid operator with electricity making up about 84% of its business.[49] Sonelgaz has not only focused on the densely populated north but has also made efforts to reach down south.[50] While the electrification rate was 57% in 1977, 96% of the country has now access to electricity. Algeria is connected with neighbouring grids of Tunisia and Morocco also by a 440 kV line each.[51][52]

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Transmission & Distribution

In terms of the distribution grid, there are several operators providing Algeria with electricity. To offer some overview, the involved players and their functions in the process of transmitting and distributing energy are listed below.


Energy distribution by company and the respective activity[53]:

Company

Activity

Sonelgaz

National electricity production, commercialisation and distribution of natural gas

Algerian Energy Company (AEC)

Electricity production, commercialisation, energy transport and distribution, desalination of sea water and telecommunications

KAHRAKIB

Studies on and realisation of high tension electricity infrastructure

KAHRIF

Works on electrification

KANAGHAZ

Studies on and realisation of canalisation and gas transportation


The electricity distribution itself is organised by four companies: "La société de distribution de l'ouest (SDO)", "la société de distribution du centre (SDC)", "la société de distribution d'Alger (SDA)" and "la société de l'est (SDE)".

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Market Situation for Energy Technologies and Services

Although state-run gas and electricity company Sonelgaz considers energy prices to be far too cheap, prices are set by the likewise state-run regulatory commission CREG and thus add up 0.04583 €/kWh (4,1789 DZD/kWh).[54] Although the energy market has officially been liberalised, energy supply is still dominated by state-owned enterprises (mainly in form of the just mentioned companies under the Sonelgaz Group), with the exception of a few private enterprises in which Sonelgaz is mostly a major stakeholder.[55]

Despite the insufficient but highly expendable use of renewable energy, the Ministry of Energy and Mining of Algeria has published an ambitious renewable energy and energy efficiency programme dating March, 2011. The Renewable Energy and Energy Efficiency Program includes the idea of installing up to 22,000 MW of power generating capacity from renewable resources until 2030. The ministry assumes that the percentage of renewable energy will be 40% of the electricity prodiced for domestic consumption. While 12,000 MW are destined for the domestic market, the other 10,000 MW are intended for export. According to the ministry, solar power has the highest potential in Algeria. In comparision wind, biogass, geothermal and hydropower energies play a minor role but wind farms and experimental projects in biomass and geothermal energy were also drive forth. [28] Till 2012 the installed capacity of renewabel energy accounted for 253 MW which is 2.2% of the total installed capacity. While hydro power amounts to 228 MW, 25 MW accounts for CSP. For the most part, the installed capacity is ascribe to fossil fuel, namly 97.8%.[27]

The Renewable Energy and Energy Efficiency Program targets to develop about 60 solar photovoltaic and concentrating solar power plants, wind farms and hybrid power plants till 2020 which should be carried out in three phases. The first phase started in 2011 and was envisaged to test different technologies. The second phase will start in 2014. From then on, the deployment of the program will start which is followed by the last phase starting in 2016 when large-scale deployment of the programm will be conducted.[28]

Regarding energy efficiency the program aims to achieve a couple of projects such as the improvement of heat insulation of buildings, the development of solar water heating, the promotion of LPG and NG fuels as well as co-generation. Moreover the program seeks to spread the use of low energy consumption lamps and converse simply cycle power plants to combined cycles power plans. And lastly Algeria intends to develop solar cooling systems and desalinate brackish water using renewable energy.[28]

The renewable energy & energy efficiency partnership (REEEP) suggests that due to future rises in energy consumption and the necessary expansion of power generating capacities, the relevance of independent power producers (IPP's) will heavily increase. REEEP is expecting for the IPP's to contribute to further expansions with up to 70%.[56]

The Algerian electricity market is regulated by CREG, functioning under the Ministry of Energy and Mines (MEM) Go To Top

Key Problems of the Energy Sector

Two major problems that are indirectly linked to the energy sector are the decaying infrastructure limiting mobility, and a rapid population growth that is adding further tension to the situation due to a certain inability of providing services and a lack of ability or willingness to pay for electricity, while the unemployment rate is simultaneously rising, as well.[57]

The current situation in the electricity sector is characterised by accumulated delays in the launching and realisation of projects. This poses problems for decision making and project management.[58]

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Policy Framework, Laws and Regulations

General Energy Policy, Energy Strategy

The general approach and strategy intended by the Algerian Ministry of Energy and Mines is constituted by decree no. 07-266, dating the 9th of September 2007.[59] It represents one of the main basic modules, describing the function and role of the Ministry with respect to the intentions of the Algerian government.

In Article 1, the Ministry commits to the elaboration of political and strategic research, the production and valorisation of hydrocarbon, mineral and energetic resources and the embedding of the respective industry in this sector.[60] In Article 5 it furthermore commits to the necessary studies and research and the promotion of sources of renewable energy.[61]

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Important Laws and Regulations

Due to the increasing importance of renewable energies, Algeria has created a legal framework concerning the promotion and exploitation of renewable energy. The foundation of this legal framework is given by the following legal documents:[62]

  • Law no. 99-09 concerning energy cuts (July 28th, 1999)
  • Law no. 02-01 concerning electricity and distribution of gas (February 5th, 2002)
  • Law no. 04-09 concerning the promotion and exploitation of renewable energies in the context of sustainable development (August 14th, 2004)
  • Executive decree no. 04-92 concerning the application of a subsidisation of renewable energy based electricity production
  • Special purposes account no. 302-131, titled Fonds National pour les Energies Renouvelables, comprised in article 63 of the budgetary law of 2010
  • Executive decree no. 13-218 (June 18th, 2013) fixing the conditions for the access to premiums for renewable energy production.

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Specific Strategies (Biomass, Renewable Energies, Rural Electrification, Energy Access Strategy etc.)

Especially the law concerning energy cuts is worth mentioning, for it secures the direct and indirect promotion and support of the deployment and exploitation of renewable energies in the form of financial, fiscal and customs-wise perquisites.

Moreover, Algeria has founded the "Algerian Institute of Renewable Energies" (IAER), a public establishment of industrial nature under the authority of the Algerian Ministry of Energy. The founding of this organisation has been recorded by decree of the Ministry of Energy and Mines in January 2011.[63]

Supporting policies of renewable energy include public competitive biddings for large scale private projects and Feed-in Tariffs which were adopted by law No. 02-01 in 2002[27] No project has been operational under the FiT law till now. Renewable energy plants were financed or subsidised by public funds or international development partners.[64] In addition Décret exécutif 04-92 mentioned serveral supporting policies such as tendering, quota and premiums. But so far instruments have not been operational. Net-metering policy for small scale renewable energy project are not available.[27]

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Institutional Setup in the Energy Sector

Governmental Institutions

The Algerian energy sector is politically represented by the Ministry of Energy and Mines (MEM). MEM is the most important player in the Algerian energy sector. Its mandate is given by decree no. 07-266 of 2010, assuring the ministry’s responsibility of elaboration and implementation of policies and strategies in the context of research, exploitation, production and usage of minerals and energy sources.[65] MEM is assured control of the energy sector. Public institutions and organisations are subordinated to it.[66] MEM is thus engaged in the domains of production, transport, sale and distribution. MEM’s function also comprises the superintendence of the Fonds National des Energies Renouvelables (FNER) and the Fonds National de la Maitrise de l’Energie (FNME).[67]

On the basis of article 63 of the budgetary law, the FNER was found in 2010 and is financed by 0,5% of revenues gained from the export of fossil energy resources.[68] It is institutionalised by the special purposes account no. 302-131. In a more global context, the funds main task is the reinforced development of renewable energies in Algeria.

A very particular notice should be given to the fewer institutions that deal with renewable energy and energy efficiency. Although the trend and global awareness of these issues has mainly grown in the last decade, some efforts have been made to approach them in earlier times. L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), e.g., was already found in 1985.[69] According to decree no. 99-09, dating July 28th 1999, APRUE's main tasks include amonst others the implementation of the Programme National de Maîtrisse de l'Energie (PNME) and sectorial projects involving partnerships with other sectors (e.g. industry, transportation).[70] Having said that, the descirption of competencies and missions are formulated quite vaguely. Another organisation that should be mentioned explicitly is the New Energy Algeria (NEAL) that was found in 2002.[71] Its function mainly involves the production and development of renewable energies, the establishment of win-win partenerships within the framework of technology-cooperations, and the consultation of national and international enterprises dealing with renewable energies and energy efficiency.[72]

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State-owned Enterprises

The Algerian energy sector is characterized by a few company networks with national enterprises numerously scattered over the respective branches of the energy sector.
The hydrocarbon and petroleum branch mainly consists of the Groupe SONATRACH, a dominating organisation dealing with the exploitation, transportation and commercialisation of oil and gas products. The subordinated company NAFTAL SPA is a national petrol station chain and is owned 100% by SONATRACH, which itself was found by the government in 1963 (presidential decree no. 63 - 491 December 31st, 1963).[73] SONATRACH is the main player in terms of oil and gaz production and is - despite the fact that it is officially to be a commercial entity - a state-owned company of Algeria with the state being the sole shareholder of SONATRACH.[74] Overall, the SONATRACH group is made up of 29 subordinated companies and organisations.[75]

Just as SONATRACH, Groupe SONELGAZ, responsible for the production and commercialisation of electricity and the national distribution of natural gaz, is likewise state-owned. Together, the two companies are the most important and influential players in the algerian energy sector. In 2001, the found the Algerian Energy Company (AEC)[76], whose main task it is to produce, commercialise, transport and distribute electricity throughout Algeria. Being a part of the SONELGAZ group, the Société Algérienne de Production de l'Electricité (SPE) is in charge of electricity production, as well,[77] whereas the electricity transportation is mainly carried out by the Société Algérienne de Gestion du Réseau de Transport de l'Electricité (SGTE).[78] In total, the SONELGAZ group consists of 38 subordinated companies and organisations.[79]

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Activities of Other Donors, Activities of NGOs

Algeria's range of foreign donors and their acitivities and forms of support are quite big. Amongst other external donors, such as the World Bank, the United Nations Development Programm (UNDP), the African Development Bank (ADB), the USA, Canada, and Japan, the European Union is among the most active donors.[80] Apart from the individual effort of several EU-member states (e.g. Italy, Spain, and Belgium), the European Investement Bank (EIB) and the European Commission (EC) have contributed decisive support in the recent decades.[81]

The work of GIZ focus on sustainable economic development including consultancy of small and medium enterprises and industry zones. Moreover ressource managemant, climate change, water and mirco finances are prioritized.

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Existing Projects

Renewable energy development programme (German version):

The renewable energy development programme of Algeria schedules a massive increase in the energy production from renewable energy sources until 2030. According to the Ministry of Energy and Mines, this programme will be arranged in four major phases:[82]

  1. Installed power capacity of 110 MW by 2013
  2. Expansion of installed power capacity up to 650 MW by 2015
  3. By 2020 and yet another phase of capacity development, available capacity for demostic needs is expected to be about 2,600 MW, whereas another 2,000 MW are supposed to be ready for export
  4. By year 2030 available capacity for domestic needs are envisioned to grow up to 12,000 MW. Export-ready capacities are scheduled to be about 10.000 MW.

Projects in the planning phase or under implementation:

  • Hassi R'MEL CSP Centrale Hybride, operator: Abener & NEAL, total capacity: 150 MW, operating since june 2011
  • AlSol, CSP solar Tower, total capacity: 3 MW, under construction
  • Wind farm of Adrar, operator: Sonelgaz, total capacity: 10 MW
  • Electrification of 16 villages with individual PV kits, operator: Sonelgaz and CEEG, total capacity: 5 MW
  • Fabrication of PV modules, operator: Sonelgaz/ Rouiba Eclairage, total production capacity: 116 MWp/ year, start: 2014


Energy efficiency programme:

The energy efficiency programme is big step for Algeria towards an eco-friendly energy policy, showing that an ecologically sensitive use of already existing energy resources are just as important as developing new sources of exploitation.[83] The announced goal is to provide the same service as usual - but with less energy being used in the process of it.[84] Planned provisions to facilitate the desired energy efficiency include thermal insulation in domestic households, an extensive use of energy-saving lamps, efficient public lighting by using sodium vapour lamps, and the promotion of liquid petroleum gas (LPG) as fuel. Furthermore, public commercial vehicles are planned to run with natural gas by 2020. For the moment, a research pilot has been launched in Algier to test the feasibility of this vision. By 2020, all major cities in Algeria are planned to follow this lead. Last but not least a rather ambitious plan is to develop air conditioning technology running with solar power - although this idea is only at the outset and only exists in form of preliminary research, it can be considered to be one of the most changing reforms regarding the high usage of air conditions during summer months.

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Further Information

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References

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