Difference between revisions of "Algeria Energy Situation"

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== Access rate  ==
 
== Access rate  ==
  
The International Energy Association (IEA) states that the average energy supply per individual (TPES/pop. =&nbsp;toe/capita) in 2008 was 1.08 toe, which was much less than the worlds average (1.83 toe).<ref name="null">International Energy Association (IEA) (2010), "Key World Energy Statistics 2010", pg. 51</ref>&nbsp;Another statistic that seems to reveal a similar deviance is the consumption of electricity per individual (kWh/capita), which is about 957 kWh&nbsp;(compared to the worlds average of 2,782 kWh).<ref>International Energy Association (IEA) (2010), "Key World Energy Statistics 2010", pg. 51</ref>&nbsp;The persumption 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.<ref name="null">Groupe Sonelgaz (2009), "Rapport d'Activité &amp;amp; comptes des gestions consolidés 2009", pg. 29</ref>&nbsp;Considering the average african household size of 4.7 members,<ref>Baumann, H. (2007), "Changing household patterns create opportunities for construction, retail and finance", Last Updated: April, 2007, Accessed: September 20, 2011, URL: http://www.euromonitor.com/changing-household-patterns-create-opportunities-for-construction-retail-and-finance/article</ref> this number mounts up to 30,672195.3 mio people - as opposed to the total population of about 34.5 million people.&nbsp;Following this logic, the&nbsp;concrete, explicit access rate would be around&nbsp;89%.&nbsp;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.<ref>The World Bank (2011), "Rural population (% of total population)", Last Updated: 2011, Accessed: September 21, 2011, URL: http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS</ref>&nbsp; Having said that, the Algerian state and Sonelgaz are showing quite some effort to promote urbanisation. One statistic supporting this perception is the amount of almost 378,5 billion Algerian Dinars that was spent in 2009 in form of eight different projects that have dealt with rural electrification.<ref name="null">Groupe Sonelgaz (2009), "Rapport d'Activité &amp;amp; comptes des gestions consolidés 2009", pg. 38</ref>  
+
The International Energy Association (IEA) states that the average energy supply per individual (TPES/pop. =&nbsp;toe/capita) in 2008 was 1.08 toe, which was much less than the worlds average (1.83 toe).<ref name="null">International Energy Association (IEA) (2010), "Key World Energy Statistics 2010", pg. 51</ref>&nbsp;Another statistic that seems to reveal a similar deviance is the consumption of electricity per individual (kWh/capita), which is about 957 kWh&nbsp;(compared to the worlds average of 2,782 kWh).<ref>International Energy Association (IEA) (2010), "Key World Energy Statistics 2010", pg. 51</ref>&nbsp;The persumption 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.<ref name="null">Groupe Sonelgaz (2009), "Rapport d'Activité &amp;amp;amp; comptes des gestions consolidés 2009", pg. 29</ref>&nbsp;Considering the average african household size of 4.7 members,<ref>Baumann, H. (2007), "Changing household patterns create opportunities for construction, retail and finance", Last Updated: April, 2007, Accessed: September 20, 2011, URL: http://www.euromonitor.com/changing-household-patterns-create-opportunities-for-construction-retail-and-finance/article</ref> this number mounts up to 30,672195.3 mio people - as opposed to the total population of about 34.5 million people.&nbsp;Following this logic, the&nbsp;concrete, explicit access rate would be around&nbsp;89%.&nbsp;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.<ref>The World Bank (2011), "Rural population (% of total population)", Last Updated: 2011, Accessed: September 21, 2011, URL: http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS</ref>&nbsp; Having said that, the Algerian state and Sonelgaz are showing quite some effort to promote urbanisation. One statistic supporting this perception is the amount of almost 378,5 billion Algerian Dinars that was spent in 2009 in form of eight different projects that have dealt with rural electrification.<ref name="null">Groupe Sonelgaz (2009), "Rapport d'Activité &amp;amp;amp; comptes des gestions consolidés 2009", pg. 38</ref>  
  
Network access is generally controlled by CREG.&nbsp;The German Chamber of Foreign Commerce&nbsp;yet claims that this does not represent any sort of obstacle in terms of the connection of renewable energy power utilities to the grid.
+
Network access is generally controlled by CREG.&nbsp;The German Chamber of Foreign Commerce&nbsp;yet claims that this does not represent any sort of obstacle in terms of the connection of renewable energy power utilities to the grid.<ref>German-Algerian Chamber of Industry and Commerce (2010), "AHK-Geschäftsreise Algerien - Geschäftschancen für deutsche Unternehmen im Bereich Photovoltaik, Solarthermie und CSP", pg. 1</ref>
  
 
== Market situation for different energy technologies and services <br> ==
 
== Market situation for different energy technologies and services <br> ==

Revision as of 10:04, 21 September 2011

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. The German Chamber of Foreign Commerce (AHK) predicts an annual rise in energy consumption between 5.5% and 7%, causing a doubling in the increase of production of the energy sector.[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 grid

According to the Wuppertal Institute for Climate, Environment and Energy, Algeria has an extensive AC network that spreads throughout the country with a total length of transmission network of about 18,000 km.[21] Run by Sonelgaz, Algeria's main energy operator, electricity makes up 71% of its business,[22] which is not only focused on the densely populated north but also makes efforts to reach down south.[23] In the course of the planned and already partially implemented porject of the Mediterranean Ring (MED-RING), an international effort to interlink the countries bordering the Mediterranean Sea with an electronic circuit, Algeria is one out of 22 countries that is being connected with neighbouring grids from Tunisia, Morocco and Spain.[24][25]

Access rate

The International Energy Association (IEA) states that the average energy supply per individual (TPES/pop. = toe/capita) in 2008 was 1.08 toe, which was much less than the worlds average (1.83 toe).[21] Another statistic that seems to reveal a similar deviance is the consumption of electricity per individual (kWh/capita), which is about 957 kWh (compared to the worlds average of 2,782 kWh).[26] The persumption 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.[21] Considering the average african household size of 4.7 members,[27] 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.[28]  Having said that, the Algerian state and Sonelgaz are showing quite some effort to promote urbanisation. One statistic supporting this perception is the amount of almost 378,5 billion Algerian Dinars that was spent in 2009 in form of eight different projects that have dealt with rural electrification.[21]

Network access is generally controlled by CREG. The German Chamber of Foreign Commerce yet claims that this does not represent any sort of obstacle in terms of the connection of renewable energy power utilities to the grid.[29]

Market situation for different energy technologies and services

Solar Energy

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Wind Energy

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Biomass

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Biogas

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Hydro Power

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Other renewable Sources

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Key problems of the energy sector

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Policy framework, laws and regulations

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General Energy policy, Energy strategy

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Important Laws and regulations

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Specific strategies (Biomass, renewable energies, rural electrification, energy access strategy etc.)

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Institutional set up in the energy sector

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Governmental institutions Private sector (enterprises, NGOs)

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Activities of other donors, activities of NGOs

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Existing projects

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Further Reading

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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. German-Algerian Chamber of Industry and Commerce (2010), "AHK-Geschäftsreise Algerien - Geschäftschancen für deutsche Unternehmen im Bereich Photovoltaik, Solarthermie und CSP", pg. 1
  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
  21. 21.0 21.1 21.2 21.3 Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27 Cite error: Invalid <ref> tag; name "null" defined multiple times with different content Cite error: Invalid <ref> tag; name "null" defined multiple times with different content Cite error: Invalid <ref> tag; name "null" defined multiple times with different content
  22. Groupe Sonelgaz (2009), "Rapport d'Activite 2009 &amp;amp;amp; comptes de gestion consolidés", pg. 26
  23. Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27
  24. Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27
  25. Euro-Mediterranean Energy Market Ingeration Project, Last Update: September 08, 2011, Accessed: September 20, 2011, URL: http://www.medemip.eu/WebPages/Common/showpage.aspx?pageid=184
  26. International Energy Association (IEA) (2010), "Key World Energy Statistics 2010", pg. 51
  27. Baumann, H. (2007), "Changing household patterns create opportunities for construction, retail and finance", Last Updated: April, 2007, Accessed: September 20, 2011, URL: http://www.euromonitor.com/changing-household-patterns-create-opportunities-for-construction-retail-and-finance/article
  28. The World Bank (2011), "Rural population (% of total population)", Last Updated: 2011, Accessed: September 21, 2011, URL: http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS
  29. German-Algerian Chamber of Industry and Commerce (2010), "AHK-Geschäftsreise Algerien - Geschäftschancen für deutsche Unternehmen im Bereich Photovoltaik, Solarthermie und CSP", pg. 1