Difference between revisions of "Algeria Energy Situation"

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{{CES Country|CES Country Name=Algeria
 
{{CES Country|CES Country Name=Algeria
 
|CES Country Capital=Algiers
 
|CES Country Capital=Algiers
|CES Country Region=Middle East & North Africa
+
|CES Country Region Middle East and North Africa = Middle East & North Africa
 
|CES Country Coordinates=28.0000° N, 2.0000° E
 
|CES Country Coordinates=28.0000° N, 2.0000° E
 
}}
 
}}
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= Introduction<br/> =
 
= Introduction<br/> =
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. 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 occupied by the Sahara, which explains the arrangement of population density: 90% of the population is located in the north.<ref>Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/</ref> The mild Mediterranean climate coming from the coast is replaced by a dry desert climate further south.<br/>[[Algeria Energy Situation#toc|►Go to Top]]<br/>
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<br/>
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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. 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 occupied by the Sahara, which explains the arrangement of population density: 90% of the population is located in the north.<ref name="Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/">Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/</ref> The mild Mediterranean climate coming from the coast is replaced by a dry desert climate further south.<br/>[[Algeria Energy Situation#toc|►Go to Top]]<br/><br/>
= Energy Situation =
+
 
 +
= Energy Situation<br/> =
  
 
== Energy Data<br/> ==
 
== Energy Data<br/> ==
  
 
=== Primary Energy Supply<br/> ===
 
=== Primary Energy Supply<br/> ===
In 2012, Algeria produced a total amount of 143,764 ktoe of energy. The main energy sources are crude oil (49.5%) and natural gas (50.4%).<ref>http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances</ref> In comparison, the numbers concerning the renewable energies are much smaller and close to zero. Other energy sources such as coal or nuclear power are not used. As large shares of the produces energy are exported, the primary energy supply in 2012 was 46,325 ktoe.<br/>
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 +
In 2012, Algeria produced a total amount of 143,764 <span data-scayt_word="ktoe" data-scaytid="1062">ktoe</span> of energy. The main energy sources are crude oil (49.5%) and natural gas (50.4%).<ref name="http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances">http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances</ref> In comparison, the numbers concerning the renewable energies are much smaller and close to zero. Other energy sources such as coal or nuclear power are not used. As large shares of the produces energy are exported, the primary energy supply in 2012 was 46,325 <span data-scayt_word="ktoe" data-scaytid="1063">ktoe</span>.<br/>
 +
 
 +
<br/>
 +
 
 
=== Consumption<br/> ===
 
=== Consumption<br/> ===
Algeria's total final consumption (TFC) has been steadily increasing in recent years. While in 2010 the energy consumption added up to around 31,500 ktoe, in 2013 it had increased to 38,543 ktoe<ref>http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances</ref>, which means that the country has seen an increase of 22% in just three years.<br/>
+
 
Taking a closer look at various sectors, the residential sector (including agriculture) is the one which consumes the most energy (43%), followed by the transport sector (36%) and the industry sector (21%). More detailed figures are outlined in the table below.<br/>
+
Algeria's total final consumption (<span data-scayt_word="tfc" data-scaytid="1064">TFC</span>) has been steadily increasing in recent years. While in 2010 the energy consumption added up to around 31,500 <span data-scayt_word="ktoe" data-scaytid="1065">ktoe</span>, in 2013 it had increased to 38,543 <span data-scayt_word="ktoe" data-scaytid="1066">ktoe</span><ref name="http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances">http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances</ref>, which means that the country has seen an increase of 22% in just three years.<br/>Taking a closer look at various sectors, the residential sector (including agriculture) is the one which consumes the most energy (43%), followed by the transport sector (36%) and the industry sector (21%). More detailed figures are outlined in the table below.<br/>
<p style="text-align: center;"><u>Table 1: Final energy consumption in Jordan in 2012 and 2013 by sector (ktoe)</u><ref>http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf</ref><u></u><br/></p>
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<p style="text-align: center;"><u>Table 1: Final energy consumption in Algeria in 2012 and 2013 by sector (<span data-scayt_word="ktoe" data-scaytid="1067">ktoe</span>)</u><ref name="http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf">http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf</ref><br/></p>
 
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{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 
|-
 
|-
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| 2012
 
| 2012
 
| 2013
 
| 2013
| Change in %
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| Change in&nbsp;%
 
|-
 
|-
 
| Industry
 
| Industry
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| +6.0
 
| +6.0
 
|}
 
|}
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<br/>
 
<br/>
 +
 
=== Import and Export<br/> ===
 
=== Import and Export<br/> ===
Algeria is a net exporting country. In the region, it is an important producer of hydrocarbons and also exports large amounts of natural gas to Europe.
+
 
In 2012 , Algeria imported a total of 5,031 ktoe, of which 4,639 ktoe were oil products. These amounts appear minor compared to the exports, which added up to 46,325 ktoe. The exports were mostly crude oil, oil products and natural gas.<ref>http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=Balances&year=2012</ref><br/>
+
Algeria is a net exporting country. In the region, it is an important producer of hydrocarbons and also exports large amounts of natural gas to Europe. In 2012, Algeria imported a total of 5,031 <span data-scayt_word="ktoe" data-scaytid="1068">ktoe</span>, of which 4,639 <span data-scayt_word="ktoe" data-scaytid="1069">ktoe</span> were oil products. These amounts appear minor compared to the exports, which added up to 46,325 <span data-scayt_word="ktoe" data-scaytid="1070">ktoe</span>. The exports were mostly crude oil, oil products and natural gas.<ref name="http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=Balances&year=2012">http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=Balances&year=2012</ref><br/>
== Subsidies<br/> ==
+
 
Algeria does not export all of its natural gas and oil production, but also relies on it for domestic consumption. Both resources are heavily subsidized. According to the International Monetary Fund (IMF), altogether, subsidies were at 18.3 % of GDP in 2012. Of this figure, 3.4 percentage points were subsidies for natural gas, 4.0 percentage points for electricity and 4.7 percentage points for petroleum products (including diesel, gasoline and LPG).<ref>http://www.imf.org/external/pubs/ft/scr/2014/cr14342.pdf</ref><br/>
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<br/>
 +
 
 +
=== Subsidies<br/> ===
 +
 
 +
Algeria does not export all of its natural gas and oil production, but also relies on it for domestic consumption. Both resources are heavily subsidized. According to the International Monetary Fund (IMF), altogether, subsidies were at 18.3&nbsp;% of GDP in 2012. Of this figure, 3.4 percentage points were subsidies for natural gas, 4.0 percentage points for electricity and 4.7 percentage points for petroleum products (including diesel, gasoline and LPG).<ref name="http://www.imf.org/external/pubs/ft/scr/2014/cr14342.pdf">http://www.imf.org/external/pubs/ft/scr/2014/cr14342.pdf</ref><br/>[[Algeria Energy Situation#toc|►Go to Top]]<br/>
 +
 
 
== Renewable Energy<br/> ==
 
== Renewable Energy<br/> ==
Although there is a high potential for the use of solar energy in Algeria, there are hardly any solar power plants so far. According to the MENA Renewables status report 2013 by REN21 the installed capacity of Photovoltaics (PV) was 7.1 MW in 2010 and 25 MW in 2012 of Concentrated Solar Power (CSP).<ref>http://www.ren21.net/Portals/0/documents/activities/Regional%20Reports/MENA_2013_lowres.pdf</ref> The report also gives estimates for capacity of renewable energy projects in the pipeline. For solar power, a capacity of 175 MW in the pipeline was estimated as well as 20 MW of wind power. However, the figures issued by the Regional Centre for Renewable Energy and Energy Efficiency (RCREE) are higher: They state an estimated capacity of 370 MW of solar power in the pipeline (all CSP) and 210 MW of wind power.<ref>http://www.rcreee.org/sites/default/files/algeria_fact_sheet_print.pdf</ref><br/>
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Although there is some installed capacity of hydro power (228 MW), this energy source only plays a marginal role due to limited precipitation and high evaporation.<br/>
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Although there is a high potential for the use of solar energy in Algeria, there are hardly any solar power plants so far. According to the MENA <span data-scayt_word="renewables" data-scaytid="1072">Renewables</span> status report 2013 by <span data-scayt_word="ren21" data-scaytid="1073">REN21</span> the installed capacity of <span data-scayt_word="photovoltaics" data-scaytid="1074">Photovoltaics</span> (PV) was 7.1 MW in 2010 and 25 MW in 2012 of Concentrated Solar Power (<span data-scayt_word="csp" data-scaytid="1075">CSP</span>).<ref name="http://www.ren21.net/Portals/0/documents/activities/Regional%20Reports/MENA_2013_lowres.pdf">http://www.ren21.net/Portals/0/documents/activities/Regional%20Reports/MENA_2013_lowres.pdf</ref> The report also gives estimates for capacity of renewable energy projects in the pipeline. For solar power, a capacity of 175 MW in the pipeline was estimated as well as 20 MW of wind power. However, the figures issued by the Regional Centre for Renewable Energy and Energy Efficiency (<span data-scayt_word="rcree" data-scaytid="1076">RCREE</span>) are higher: They state an estimated capacity of 370 MW of solar power in the pipeline (all <span data-scayt_word="csp" data-scaytid="1077">CSP</span>) and 210 MW of wind power.<ref name="http://www.rcreee.org/sites/default/files/algeria_fact_sheet_print.pdf">http://www.rcreee.org/sites/default/files/algeria_fact_sheet_print.pdf</ref><br/>Although there is some installed capacity of hydro power (228 MW), this energy source only plays a marginal role due to limited precipitation and high evaporation.<br/>[[Algeria Energy Situation#toc|►Go to Top]]<br/>
[[Algeria Energy Situation#toc|►Go to Top]]<br/>
 
 
<div><br/></div>
 
<div><br/></div>
= Electricity Situation<br/> =
+
== Electricity<br/> ==
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.<ref>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</ref> 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.<ref>Comission de Régulation de l'Electricité et du Gaz (CREG), 2010, "Rapport d'activité 2010", Algiers: pg. 36.</ref> 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.<ref>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</ref> 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.<ref>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</ref> Depending on the scenario, energy needs could bounce up to spomething between 7.8% and 9.1% until 2017.<ref>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</ref>
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Between 2001 and 2011, electricity production rose from 26,250 GWh <ref>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</ref> to 48,900 GWh.<ref>Commission de Régulation de l'Electricité et du Gaz (CREG), 2011, Rapport d'activité 2011, Algiers: pg. 11.</ref> 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.<ref>Commission de Régulation de l'Electricité et du Gaz (CREG), 2011, Rapport d'activité 2011, Algiers: pg. 11-14.</ref> It appears that this development is mainly due to the economic growth that Algeria has experienced along the way.<ref>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</ref>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.
+
=== Installed Capacity and Generation<br/> ===
<br/>
+
 
<u>Table 3: Electricity Production and Supply of Algeria (2011)<ref name="International Energy Agency, ©2013,">International Energy Agency, ©2013, "Electricity/Heat in Algeria 2009", Last updated: - , Accessed: June 28, 2013, URL:http://www.iea.org/stats/electricitydata.asp?COUNTRY_CODE=DZ </ref>:</u>
+
At the end of 2013, the installed capacity of electricity generation reached 15.1 <span data-scayt_word="gw" data-scaytid="1079">GW</span>. This is an increase of about 18% compared to the precedent year and due to the new power plants being installed and starting operations.<ref name="http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf">http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf</ref><br/>Between 2001 and 2013, electricity production rose from 26,250 <span data-scayt_word="gwh" data-scaytid="1080">GWh</span> to 57,397 <span data-scayt_word="gwh" data-scaytid="1081">GWh</span><ref name="http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=electricityandheat">http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=electricityandheat</ref> . As table 2 below shows, the main source for the production of electricity is gas with a relative percentage to the total amount produced of over 92%. Although there are other sources of electricity, namely oil and hydro-power, these play only a minor role.<br/>
<br/>
+
<p style="text-align: center;"><u>Table 2: Electricity production by source (2012)<ref name="http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=electricityandheat">http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=electricityandheat</ref>:</u><br/></p>
{| style="width: 100%;" border="1" cellspacing="1" cellpadding="5"
+
{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 
|-
 
|-
| '''Energy Source'''
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| '''Production from'''<br/>
| '''in GWh'''
+
| '''in <span data-scayt_word="gwh" data-scaytid="1082">GWh</span>'''
| '''in%<sup><font size="2">2,3</font></sup>'''
+
| '''in&nbsp;%'''<br/>
 
|-
 
|-
| Coal
+
| - Oil
| 0
+
| 3,727
|  
+
| 6.49
 
|-
 
|-
| Oil
+
| - Gas
| 2,816
+
| 53,048
| 2
+
| 92.42
 
|-
 
|-
| Gas
+
| - Hydro
| 47,906
+
| 622
| 97.7
+
| 1.08
 
|-
 
|-
| Biomass
+
| Total Production
| 0
+
| 57,397
|  
+
| 100
 +
|}
 +
 
 +
<br/>
 +
 
 +
=== Consumption<br/> ===
 +
 
 +
The residential sector is the biggest consumer in Algeria, representing 38.1% of the nationally consumed energy. Other important sectors are the tertiary sector (20.93%) and the manufacturing industry (17.83%). The details are outlined in table 3.<br/>
 +
<p style="text-align: center;"><u>Table 3: Electricity consumption by sector (2012) in <span data-scayt_word="ktoe" data-scaytid="1083">ktoe</span><ref name="http://www.aprue.org.dz/PUBLICATION%20CONSOMMATION%20ENERGÉTIQUE%20FINALE%202012.pdf">http://www.aprue.org.dz/PUBLICATION%20CONSOMMATION%20ENERGÉTIQUE%20FINALE%202012.pdf</ref>:</u><br/></p>
 +
{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 
|-
 
|-
| Waste
+
| '''Sector/ Product'''
| 0
+
| '''in <span data-scayt_word="ktoe" data-scaytid="1084">ktoe</span>'''
|  
+
| '''in&nbsp;%'''
 
|-
 
|-
| Nuclear
+
| Agriculture
| 0
+
| 89,865
|  
+
| 2.42
 
|-
 
|-
| Hydro
+
| Public works
| 502
+
| 17,742
| 0.7
+
| 0.48
 
|-
 
|-
| Geothermal
+
| Hydraulics
| 0
+
| 468,786
| 0
+
| 12.63
 
|-
 
|-
| Solar PV
+
| Mines and quarries
| 0
+
| 27,365
| 0
+
| 0.74
 
|-
 
|-
| Solar thermal
+
| Manufacturing industry
| 0
+
| 661,555
| 0
+
| 17.83
 
|-
 
|-
| Wind
+
| Gas and oil industry
| 0
+
| 273,239
| 0
+
| 7.36
 
|-
 
|-
| Tide
+
| Residential
| 0
+
| 1,413,960
| 0
+
| 38.10
 
|-
 
|-
| Other Sources
+
| Tertiary
| 0
+
| 776,735
| 0
+
| 20.93
 
|-
 
|-
| '''Total Production'''
+
| Transport
| '''51,224'''
+
| 11,670
|  
+
| 0.31
 
|-
 
|-
| Imports
+
| Total
| 657
+
| 3,710,917
| 0.9
+
| 100
|-
 
| Exports
 
| -799
 
| -0.9
 
|-
 
| '''Domestic Supply'''
 
| '''51,082'''
 
|  
 
 
|}
 
|}
<sup>2</sup>In relation to the amount given by "Total Production"
+
 
<sup>3</sup>Total may not add up due to roundings and overlapping percentages.
 
 
<br/>
 
<br/>
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:
+
 
<u>Production sorted by operator in 2010<ref>Commission de Régulation de l'Electricité et du Gaz (CREG), 2010, Rapport d'activité 2010, Algiers: pg. 16.</ref> and 2011<ref name="Commission de Régulation de l'Electricité et du Gaz (CREG), 2011, Rapport d'activité 2011, Algiers: pg. 11.">Commission de Régulation de l'Electricité et du Gaz (CREG), 2011, Rapport d'activité 2011, Algiers: pg. 11.</ref>:</u>
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=== Grid<br/> ===
{| style="width: 100%; height: 200px;" border="1" cellspacing="1" cellpadding="1"
+
 
|-
+
In 2012 the total length of the transmission network was 23,802 km which was an increase of 6.29% in comparison to 2011. While the electrification rate was 57% in 1977, as of 2010, 99.3% of the population has now access to electricity. Algeria is connected with neighboring grids of Tunisia and Morocco by a 440 kV line each.<ref name="http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf">http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf</ref><br/>
! scope="col" | Operator
+
 
! scope="col" | % (2010)
+
=== Electricity Prices<br/> ===
! scope="col" | % (2011)
+
 
 +
In 2013, electricity prices were fixed at 0.03 USD/<span data-scayt_word="kwh" data-scaytid="1085">kwh</span> for all segments<ref name="http://www.rcreee.org/sites/default/files/rs_latest_-electricity_-prices_schemes_in_rcreee_-ms_6-2013_en.pdf">http://www.rcreee.org/sites/default/files/rs_latest_-electricity_-prices_schemes_in_rcreee_-ms_6-2013_en.pdf</ref>. According to the US Energy Information Administration, this price has been in place since 2005.<ref name="http://www.eia.gov/countries/cab.cfm?fips=ag">http://www.eia.gov/countries/cab.cfm?fips=ag</ref><br/>[[Algeria Energy Situation#toc|►Go to Top]]<br/>
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 +
= Energy Policy<br/> =
 +
 
 +
== General Information<br/> ==
 +
 
 +
The general approach and strategy intended by the Algerian Ministry of Energy and Mines is constituted by decree no. 07-266, dating the <span data-scayt_word="9th" data-scaytid="1087">9th</span> of September 2007.<ref name="Ministère de l'Energie et des Mines (2007),">Ministère de l'Energie et des Mines (2007), "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: - , Accessed: September 30, 2011, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref> 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 <span data-scayt_word="valorisation" data-scaytid="1088">valorisation</span> of hydrocarbon, mineral and energetic resources and the embedding of the respective industry in this sector.<ref name="Ministère de l'Energie et des Mines (2007),">Ministère de l'Energie et des Mines (2007), "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: - , Accessed: September 30, 2011, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref> In Article 5 it furthermore commits to the necessary studies and research and the promotion of sources of renewable energy.<ref name="Ministère de l'Energie et des Mines (2007),">Ministère de l'Energie et des Mines (2007), "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: - , Accessed: September 30, 2011, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref><br/>[[Algeria Energy Situation#toc|►Go to Top]]<br/>
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 +
<br/>
 +
 
 +
<br/>
 +
 
 +
== Renewable Energy Policy<br/> ==
 +
 
 +
In February 2015, the Algerian Government adopted an ambitious Renewable Energy <span data-scayt_word="programme" data-scaytid="40">programme</span>. It envisions the installation of 22 <span data-scayt_word="gw" data-scaytid="41">GW</span> of RE by 2030, which is almost double than what&nbsp;was set as a target before (12 <span data-scayt_word="gw" data-scaytid="42">GW</span>) and equals a share of about 27% RE in total electricity production. Of these 22 <span data-scayt_word="gw" data-scaytid="43">GW</span>, about&nbsp;4.5 <span data-scayt_word="gw" data-scaytid="44">GW</span> are supposed to be installed by 2020. The targets per technology are set according to two phases as outlined in the table below:<br/>
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<p style="text-align: center;"><u>Table 4:&nbsp; The Algerian RE target</u><ref name="http://portail.cder.dz/spip.php?article4565">http://portail.cder.dz/spip.php?article4565</ref><br/></p>
 +
{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 
|-
 
|-
|
+
| '''Source'''<br/>
<span class="titre_article">Sonelgaz Production d'Electricité (<span class="spip_surligne">SPE</span>)</span>
+
| '''<span data-scayt_word="1st" data-scaytid="45">1st</span> phase 2015-2020 [MW]'''<br/>
|
+
| '''<span data-scayt_word="2nd" data-scaytid="46">2nd</span> phase 2021-2030 Mw]'''<br/>
<p style="text-align: center;">54</p>
+
| '''Total [MW]'''<br/>
|
 
<p style="text-align: center;">56</p>
 
 
|-
 
|-
|
+
| Solar PV<br/>
<span class="st">Sharikat Kahraba Hadj</span><span class="st">rat-Ennous</span> (SKH)
+
| 3,000<br/>
|
+
| 10,575<br/>
<p style="text-align: center;">21</p>
+
| 13,575<br/>
|
 
<p style="text-align: center;">20</p>
 
 
|-
 
|-
|
+
| Wind<br/>
Sharikat Kahraba Skikda (SKS)
+
| 1,010<br/>
|
+
| 4,000<br/>
<p style="text-align: center;">13</p>
+
| 5,010<br/>
|
 
<p style="text-align: center;">12</p>
 
 
|-
 
|-
|
+
| <span data-scayt_word="csp" data-scaytid="47">CSP</span><br/>
Sharikat Kahraba Berrouaghia (SKB)
+
| -<br/>
|
+
| 2,000<br/>
<p style="text-align: center;">6</p>
+
| 2,000<br/>
|
 
<p style="text-align: center;">6</p>
 
 
|-
 
|-
|
+
| <span data-scayt_word="cogeneration" data-scaytid="48">Cogeneration</span><br/>
Kahrama
+
| 150<br/>
|
+
| 250<br/>
<p style="text-align: center;">6</p>
+
| 400<br/>
|
 
<p style="text-align: center;">5</p>
 
 
|-
 
|-
|
+
| Biomass<br/>
Solar Power Plant One (SPP1)
+
| 360<br/>
|
+
| 640<br/>
<p style="text-align: center;">-</p>
+
| 1,000<br/>
|
 
<p style="text-align: center;">1</p>
 
 
|-
 
|-
|
+
| Geothermal<br/>
<span style="line-height: 1.5em;">Sharikat Kahraba Terga (</span>SKT)
+
| 5<br/>
|
+
| 10<br/>
<p style="text-align: center;">-</p>
+
| 15<br/>
|
 
<p style="text-align: center;">0,16</p>
 
 
|-
 
|-
|
+
| Total<br/>
CEVITAL
+
| 4,525<br/>
|
+
| 17,475<br/>
<p style="text-align: center;">-</p>
+
| 22,000<br/>
|
 
<p style="text-align: center;">0,001</p>
 
 
|}
 
|}
[[Algeria Energy Situation#toc|►Go to Top]]
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== Electricity Grid ==
+
<br/>RE projects are entitled to sell to the distributor the power produced at a guaranteed fixed price for 20 years, according to <span data-scayt_word="décret" data-scaytid="49">Décret</span> <span data-scayt_word="exécutif" data-scaytid="50">Exécutif</span> 13-218 and an <span data-scayt_word="arrêté" data-scaytid="51">Arrêté</span> of 2/2/14. The Feed-in-tariffs vary according to plant capacity. For wind they are: >5 MW 9.5 €<span data-scayt_word="ct" data-scaytid="52">ct</span>, &lt;5 MW 11.9 €ct; for solar PV: &gt;5 MW 11.6 €ct, <5 MW 14.5 €ct. Tariffs will be adjusted 5 years after starting operations, up to a maximum of 15%. CSP projects are so far not included in the FIT scheme.<br/>An RE Fund has been set up by Executive Decree 11-423; to be financed through a 0.5% levy on oil tax revenues.<br/>Priority grid access for RE project is provided by the Executive Decrees 06-428 and 06-429 of 26/11/06 and the Order of 21/02/08.<br/>Land ownership for foreign investors requires prior approval. Most projects take place on state owned land under a concession regime. There are no priority development zones for RE.<br/>[[Algeria Energy Situation#toc|►Go to Top]]
According to the Wuppertal Institute for Climate, Environment and Energy, Algeria has an extensive AC network that spreads throughout the country.<ref name="null">Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27</ref> In 2012 the total length of the transmission network was 23,802 km which was an increase of 6.29% in comparision to 2011.<ref>Sonelgaz: Chiffres clés 2012, Reseaux d'Electricité, http://www.sonelgaz.dz/article.php3?id_article=637 </ref> Within this context, Sonelgaz is the transmission grid operator with electricity making up about 84% of its business.<ref name="Sonelgaz: Rapport d’activité 2011, http://www.sonelgaz.dz/IMG/file/Rapportdactivite2011.pdf">Sonelgaz: Rapport d’activité 2011, http://www.sonelgaz.dz/IMG/file/Rapportdactivite2011.pdf</ref> Sonelgaz has not only focused on the densely populated north but has also made efforts to reach down south.<ref>Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27</ref> 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.<ref>Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27</ref><ref>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</ref>
+
 
[[Algeria Energy Situation#toc|►Go to Top]]
+
== Energy Efficiency Policy<br/> ==
== Transmission & Distribution<br/> ==
+
 
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.
+
Also in February 2015, the Algerian government announced&nbsp;a new national <span data-scaytid="1105" data-scayt_word="programme">programme</span> on energy efficiency (EE) for the years 2015 to 2030. The EE <span data-scaytid="1521" data-scayt_word="programme">programme</span> mainly targets three sectors: the building sector, transport and industry.<br/>
 +
 
 +
In the building sector, more than 30 million toe are supposed to be saved by 2030. This will be achieved through innovative technologies and thermal insulation of constructions. Also, economic lamps and solar water heaters will contribute. In the transport sector, the&nbsp;target is to save&nbsp;more than 15 million toe. The government aims to use fuels which are widely available and least polluting, like LNG and natural gas, in order to reduce the use of gasoline. The industry sector is supposed to contribute 34 million toe by 2030.<ref name="http://portail.cder.dz/spip.php?article4445">http://portail.cder.dz/spip.php?article4445</ref><br/>
 +
 
 +
In April 2015, more details about the programme on energy efficiency were announced. About 900 billion DA (about 8 billion EUR) are to be invested, of which the Algerian government will cover 54%. The objectives include the thermal insulation of 100,000 homes per year,&nbsp; distributing 10 million energy efficient lamps and switching 1.3 million vehicles to liquid petrol gas. Through the measures, 180.000 jobs are supposed to be created.<ref name="http://portail.cder.dz/spip.php?article4579">http://portail.cder.dz/spip.php?article4579</ref><br/>
 +
 
 
<br/>
 
<br/>
<u>Energy distribution by company and the respective activity<ref>Ministère des l'Energies et des Mines (MEM), 2012, "Distribution de l'Energie", Accessed: 17th of June, 2012, URL: http://www.mem-algeria.org/francais/index.php?page=distribution-de-l-energie </ref>:</u>
+
 
{| style="width: 100%; height: 150px;" border="1" cellspacing="1" cellpadding="1"
+
= Key Actors in the Energy Sector<br/> =
|-
+
 
! scope="col" | Company
+
== Governmental Bodies and Agencies<br/> ==
! scope="col" | Activity
+
 
|-
+
The Algerian energy sector is politically represented by the '''Ministry of Energy and Mines (<span data-scayt_word="mem" data-scaytid="1405">MEM</span>)'''. <span data-scayt_word="mem" data-scaytid="1406">MEM</span> 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.<ref name="Richter, A., Buss, I., Dedorath, G., (2012), Capacity Assessment (Evaluation des Capacités du Secteur des Energies Renouvelables en Algérie, Berlin et al.: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, pg. 25">Richter, A., Buss, I., Dedorath, G., (2012), Capacity Assessment (Evaluation des Capacités du Secteur des Energies Renouvelables en Algérie, Berlin et al.: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, pg. 25</ref> <span data-scayt_word="mem" data-scaytid="1407">MEM</span> is assured control of the energy sector. Public institutions and <span data-scayt_word="organisations" data-scaytid="1408">organisations</span> are subordinated to it.<ref name="Ministère de l'Energie et des Mines,">Ministère de l'Energie et des Mines, "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: -, Accessed: September 30, 2007, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref> <span data-scayt_word="mem" data-scaytid="1409">MEM</span> is thus engaged in the domains of production, transport, sale and distribution. <span data-scayt_word="mem’s" data-scaytid="1410">MEM’s</span> function also comprises the superintendence of the '''Fonds National des Energies <span data-scayt_word="renouvelables" data-scaytid="1411">Renouvelables</span> (<span data-scayt_word="fner" data-scaytid="1412">FNER</span>)''' and the '''Fonds National de la <span data-scayt_word="maitrise" data-scaytid="1413">Maitrise</span> de <span data-scayt_word="l’energie" data-scaytid="1414">l’Energie</span> (<span data-scayt_word="fnme" data-scaytid="1415">FNME</span>)'''.<ref name="Richter, A., Buss, I., Dedorath, G., (2012), Capacity Assessment (Evaluation des Capacités du Secteur des Energies Renouvelables en Algérie, Berlin et al.: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, pg. 25">Richter, A., Buss, I., Dedorath, G., (2012), Capacity Assessment (Evaluation des Capacités du Secteur des Energies Renouvelables en Algérie, Berlin et al.: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, pg. 25</ref> On the basis of article 63 of the budgetary law, the <span data-scayt_word="fner" data-scaytid="1416">FNER</span> was founded in 2010 and is financed by 0.5% of revenues gained from the export of fossil energy resources.<ref name="(ibid.)">(ibid.)</ref> It is <span data-scayt_word="institutionalised" data-scaytid="1417">institutionalised</span> by the special purposes account no. 302-131. In a more global context, the fund's main task is the reinforced development of renewable energies in Algeria.&nbsp;<br/>
|
+
 
Sonelgaz
+
Although the trend and global awareness of climate change and the role of energy production&nbsp;have grown in the last decade, some efforts have been made to approach them in earlier times. '''<span data-scayt_word="l’agence" data-scaytid="1418">L’Agence</span> <span data-scayt_word="nationale" data-scaytid="1419">Nationale</span> pour la Promotion et la <span data-scayt_word="rationalisation" data-scaytid="1420">Rationalisation</span> de <span data-scayt_word="l’utilisation" data-scaytid="1421">l’Utilisation</span> de <span data-scayt_word="l’energie" data-scaytid="1422">l’Energie</span> (<span data-scayt_word="aprue" data-scaytid="1423">APRUE</span>)''', e.g., was already founded in 1985.<ref name="L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), 2010,">L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), 2010, "Qui sommes nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aprue.org.dz/maitrise-energetique.html</ref> According to decree no. 99-09, dating to 1999, <span data-scayt_word="aprue's" data-scaytid="1425">APRUE's</span> main tasks include the implementation of the '''<span data-scayt_word="programme" data-scaytid="1427">Programme</span> National de <span data-scayt_word="maîtrisse" data-scaytid="1428">Maîtrisse</span> de <span data-scayt_word="l'energie" data-scaytid="1429">l'Energie</span> (<span data-scayt_word="pnme" data-scaytid="1430">PNME</span>)''' and sectorial projects involving partnerships with other sectors (e.g. industry, transportation).<ref name="L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), 2010,">L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), 2010, "Qui sommes nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aprue.org.dz/maitrise-energetique.html</ref> Having said that, the <span data-scayt_word="descirption" data-scaytid="1431">description</span> of competencies and missions are formulated quite vaguely. Another <span data-scayt_word="organisation" data-scaytid="1432">organisation</span>&nbsp;in this spectrum is '''New Energy Algeria (NEAL)''' which was founded in 2002.<ref name="New Energy Algeria Spa (NEAL) (2010),">New Energy Algeria Spa (NEAL) (2010), "Qui sommes-nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.neal-dz.net/index.php?option=com_content&amp;view=article&amp;id=275&amp;Itemid=124&amp;lang=fr</ref> Its function mainly involves the production and development of renewable energies, the establishment of win-win <span data-scayt_word="partenerships" data-scaytid="1433">partenerships</span> within the framework of <span data-scayt_word="technology-cooperations" data-scaytid="1434">technology-cooperations</span>, and the consultation of national and international enterprises dealing with renewable energies and energy efficiency.<ref name="New Energy Algeria Spa (NEAL) (2010),">New Energy Algeria Spa (NEAL) (2010), "Qui sommes-nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.neal-dz.net/index.php?option=com_content&amp;view=article&amp;id=271&amp;Itemid=123&amp;lang=fr</ref><br/>
|
+
 
<font face="arial,helvetica,sans-serif" size="2">National electricity production, commercialisation and distribution of natural gas</font>
+
The '''Commission de Régulation de l’Electricité et du Gaz (CREG)''' was created under law&nbsp;no. 02-01 of&nbsp;2002. CREG is responsible to watch over the electricity and national gas markets in order to protect both the interests of the consumers and those of the operators. There are three main missions: realise and control public service, consult the government on organisation and functioning of electricity and gas markets and guard and control compliance with the pertinent laws.<br/>[[Algeria Energy Situation#toc|►Go to Top]]
|-
+
 
|
+
== Utilities<br/> ==
Algerian Energy Company (AEC)
+
 
|
+
The Algerian energy sector is characterized by a few company networks with national enterprises numerously scattered over the respective branches of the energy sector.<br/>The hydrocarbon and petroleum branch mainly consists of the '''<span data-scayt_word="groupe" data-scaytid="1436">Groupe</span> <span data-scayt_word="sonatrach" data-scaytid="1437">SONATRACH</span>''', a dominating <span data-scayt_word="organisation" data-scaytid="1439">organisation</span> dealing with the exploitation, transportation and <span data-scayt_word="commercialisation" data-scaytid="1440">commercialisation</span> of oil and gas products. The subordinated company <span data-scayt_word="naftal" data-scaytid="1441">NAFTAL</span> SPA is a national petrol station chain and is owned 100% by <span data-scayt_word="sonatrach" data-scaytid="1438">SONATRACH</span>, which itself was founded by the government in 1963 (presidential decree no. 63 - 491 December <span data-scayt_word="31st" data-scaytid="1442">31st</span>, 1963).<ref name="SONATRACH (2010),">SONATRACH (2010), "Elements d'histoire des Hydrocarbures en Algerie", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonatrach-dz.com/NEW/histoire.html</ref> <span data-scayt_word="sonatrach" data-scaytid="1443">SONATRACH</span> is the main player in terms of oil and <span data-scayt_word="gaz" data-scaytid="1445">gas</span> 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 <span data-scayt_word="sonatrach" data-scaytid="1444">SONATRACH</span>.<ref name="El-Katiri, Dr. Mohammed (2010, 5),">El-Katiri, Dr. Mohammed (2010, 5), "Special Series - Sonatrach: An International Giant in the Making", Shrivenham (England): Defence Academy of the United Kingdom, pg. 3</ref> Overall, the <span data-scayt_word="sonatrach" data-scaytid="1446">SONATRACH</span> group is made up of 29 subordinated companies and <span data-scayt_word="organisations" data-scaytid="1448">organisations</span>.<ref name="Ministère de l'Energie et des Mines,">Ministère de l'Energie et des Mines, "Les Entreprises du Secteur", Last Updated: - , Accessed: October 4, 2011, URL: http://www.mem-algeria.org/francais/index.php?page=les-entreprises-du-secteur</ref> Just as <span data-scayt_word="sonatrach" data-scaytid="1447">SONATRACH</span>, '''<span data-scayt_word="groupe" data-scaytid="1449">Groupe</span> <span data-scayt_word="sonelgaz" data-scaytid="1450">SONELGAZ</span>''', responsible for the production and <span data-scayt_word="commercialisation" data-scaytid="1451">commercialisation</span> of electricity and the national distribution of natural <span data-scayt_word="gaz" data-scaytid="1452">gas</span>, is likewise state-owned. Together, the two companies are the most important and influential players in the A<span data-scayt_word="algerian" data-scaytid="1453">lgerian</span> energy sector. In 2001, the '''Algerian Energy Company (<span data-scayt_word="aec" data-scaytid="1454">AEC</span>)''' was founded<ref name="Algerian Energy Company (AEC) (2011),">Algerian Energy Company (AEC) (2011), "Présentation de l'Activite", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aec.dz/site/home.php</ref>, whose main task it is to produce, <span data-scayt_word="commercialise" data-scaytid="1455">commercialise</span>, transport and distribute electricity throughout Algeria. Being a part of the <span data-scayt_word="sonelgaz" data-scaytid="1456">SONELGAZ</span> group, the '''<span data-scayt_word="société" data-scaytid="1457">Société</span> <span data-scayt_word="algérienne" data-scaytid="1458">Algérienne</span> de Production de <span data-scayt_word="l'electricité" data-scaytid="1459">l'Electricité</span> (<span data-scayt_word="spe" data-scaytid="1460">SPE</span>)''' is in charge of electricity production, as well,<ref name="Groupe SONELGAZ Spa,">Groupe SONELGAZ Spa, "Scoiété Algérienne de Production de l'Electricité", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonelgaz.dz/article.php3?id_article=67</ref> whereas the electricity transportation is mainly carried out by the '''<span data-scayt_word="société" data-scaytid="1461">Société</span> <span data-scayt_word="algérienne" data-scaytid="1462">Algérienne</span> de <span data-scayt_word="gestion" data-scaytid="1463">Gestion</span> du <span data-scayt_word="réseau" data-scaytid="1464">Réseau</span> de Transport de <span data-scayt_word="l'electricité" data-scaytid="1465">l'Electricité</span> (<span data-scayt_word="sgte" data-scaytid="1466">SGTE</span>)'''.<ref name="Groupe SONELGAZ Sap,">Groupe SONELGAZ Sap, "Société Algérienne de Gestion du Réseau de Transport de l'Electricité", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonelgaz.dz/article.php3?id_article=68</ref> In total, the <span data-scayt_word="sonelgaz" data-scaytid="1467">SONELGAZ</span> group consists of 38 subordinated companies and <span data-scayt_word="organisations" data-scaytid="1468">organisations</span>.<ref name="Ministère de l'Energie et des Mines,">Ministère de l'Energie et des Mines, "Les Entreprises du Secteur", Last Updated: - , Accessed: October 4, 2011, URL: http://www.mem-algeria.org/francais/index.php?page=les-entreprises-du-secteur</ref><br/>The electricity distribution itself is <span data-scayt_word="organised" data-scaytid="1479">organised</span> by four companies: '''La <span data-scayt_word="société" data-scaytid="1480">société</span> de distribution de <span data-scayt_word="l'ouest" data-scaytid="1481">l'ouest</span> (<span data-scayt_word="sdo" data-scaytid="1482">SDO</span>)''', '''la <span data-scayt_word="société" data-scaytid="1483">société</span> de distribution du <span data-scayt_word="centre" data-scaytid="1486">centre</span> (<span data-scayt_word="sdc" data-scaytid="1487">SDC</span>)''', '''la <span data-scayt_word="société" data-scaytid="1484">société</span> de distribution <span data-scayt_word="d'alger" data-scaytid="1488">d'Alger</span> (<span data-scayt_word="sda" data-scaytid="1489">SDA</span>)''' and '''la <span data-scayt_word="société" data-scaytid="1485">société</span> de <span data-scayt_word="l'est" data-scaytid="1490">l'est</span> (<span data-scayt_word="sde" data-scaytid="1491">SDE</span>)'''.<br/>
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
 
|}
 
<br/>
 
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)'''".
 
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
[[Algeria Energy Situation#toc|►Go to Top]]
= Market Situation for Energy Technologies and Services<br/> =
 
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).<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> 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.<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>
 
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. <ref name="Ministry of Energy and Mining: The Renewable Energy and Energy Efficiency Program. March, 2011. http://www.mem-algeria.org/francais/uploads/enr/Programme_ENR_et_efficacite_energetique_en.pdf">Ministry of Energy and Mining: The Renewable Energy and Energy Efficiency Program. March, 2011. http://www.mem-algeria.org/francais/uploads/enr/Programme_ENR_et_efficacite_energetique_en.pdf</ref> 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%.<ref name="RCREEE Algeria Renewable Energy Profile 2012: http://www.rcreee.org/member-states/algeria/">RCREEE Algeria Renewable Energy Profile 2012: http://www.rcreee.org/member-states/algeria/</ref>
 
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.<ref name="Ministry of Energy and Mining: The Renewable Energy and Energy Efficiency Program. March, 2011. http://www.mem-algeria.org/francais/uploads/enr/Programme_ENR_et_efficacite_energetique_en.pdf">Ministry of Energy and Mining: The Renewable Energy and Energy Efficiency Program. March, 2011. http://www.mem-algeria.org/francais/uploads/enr/Programme_ENR_et_efficacite_energetique_en.pdf</ref>
 
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.<ref name="Ministry of Energy and Mining: The Renewable Energy and Energy Efficiency Program. March, 2011. http://www.mem-algeria.org/francais/uploads/enr/Programme_ENR_et_efficacite_energetique_en.pdf">Ministry of Energy and Mining: The Renewable Energy and Energy Efficiency Program. March, 2011. http://www.mem-algeria.org/francais/uploads/enr/Programme_ENR_et_efficacite_energetique_en.pdf</ref>
 
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%.<ref>Renewable Energy & Energy Efficiency Partnership (REEEP), 2012, Policy DB Details: Algeria (2012), accessed: June 18th, 2012, URL: http://www.reeep.org/index.php?id=9353&special=viewitem&cid=120</ref>
 
The Algerian electricity market is regulated by CREG, functioning under the '''Ministry of Energy and Mines (MEM)''' [[Algeria Energy Situation#Overview|Go To Top]]
 
= Key Problems of the Energy Sector<br/> =
 
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.<ref>U.S. Department of State - Diplomacy in Action (2011), "Background note: Algeria", Last Updated: February 17, 2011, Accessed: September 30, 2011, URL: http://www.state.gov/r/pa/ei/bgn/8005.htm</ref>
 
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.<ref>Commission de Régulation de l'Electricité et du Gaz (CREG), 2011, Rapport d'activité 2011, Algiers: pg. 16.</ref>
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
= Policy Framework, Laws and Regulations<br/> =
 
  
== General Energy Policy, Energy Strategy<br/> ==
+
== Others<br/> ==
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.<ref>Ministère de l'Energie et des Mines (2007), "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: - , Accessed: September 30, 2011, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref> 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.<ref>Ministère de l'Energie et des Mines (2007), "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: - , Accessed: September 30, 2011, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref> In Article 5 it furthermore commits to the necessary studies and research and the promotion of sources of renewable energy.<ref>Ministère de l'Energie et des Mines (2007), "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: - , Accessed: September 30, 2011, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref>
+
In 2013, 54% of Algeria's electricity was produced by independent power producers (IPPs). The companies are Kahrama, Shariket Kahraba Berrouaghia (SKB), Shariket Kahraba Koudiet Eddraouche (SKD), Shariket Kahraba Hadjret Ennouss (SKH), Shariket Kahraba Skikda (SKS) and Shariket Kahraba Terga (SKT).<ref name="http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf">http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf</ref><br/>
[[Algeria Energy Situation#toc|►Go to Top]]
+
 
== Important Laws and Regulations<br/> ==
+
= Energy Cooperation<br/> =
Due to the increasing importance of renewable energies, Algeria has created a legal framework concerning the promotion and exploitation of renewable energy. <u>The foundation of this legal framework is given by the following legal documents:<ref>Minstère de l'Energie et des Mines (2011), "Programm for Renewable Energy and Energy Efficiency", pg. 28</ref></u>
+
 
*'''Law no. 99-09 '''concerning energy cuts (July 28th, 1999)
+
Since Algeria has an abundance of natural resources, in particular fossil fuels, a number of countries have expressed their interest to cooperate in the energy sector. Amongst the latest are Norway<ref name="http://www.aps.dz/en/economy/6486-algeria-norway-common-willingness-to-strengthen-energy-cooperation">http://www.aps.dz/en/economy/6486-algeria-norway-common-willingness-to-strengthen-energy-cooperation</ref>, Niger<ref name="http://www.aps.dz/en/economy/5824-algeria,-niger-seek-to-boost-energy-cooperation">http://www.aps.dz/en/economy/5824-algeria,-niger-seek-to-boost-energy-cooperation</ref>, Kenya<ref name="http://www.president.go.ke/kenya-and-algeria-sign-pact-boosting-cooperation-in-energy-sector/">http://www.president.go.ke/kenya-and-algeria-sign-pact-boosting-cooperation-in-energy-sector/</ref>&nbsp;and the&nbsp;Netherlands<ref name="http://www.aps.dz/en/economy/5984-algeria,-netherlands-willing-to-boost-energy-cooperation">http://www.aps.dz/en/economy/5984-algeria,-netherlands-willing-to-boost-energy-cooperation</ref>. In cooperation with Russia, Algeria plans to build its first nuclear power plant in 2025<ref name="http://www.aps.dz/en/economy/3972-algerian,-russia-seal-nuclear-energy-cooperation-deal">http://www.aps.dz/en/economy/3972-algerian,-russia-seal-nuclear-energy-cooperation-deal</ref>.<br/>
*'''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)
+
The European Union also plans to develop a strategic partnership with Algeria in order to diversify natural gas import sources.<ref name="http://www.energypost.eu/energy-union-holistic-approach-energy-transition/">http://www.energypost.eu/energy-union-holistic-approach-energy-transition/</ref><br/>
*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.
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
== Specific Strategies (Biomass, Renewable Energies, Rural Electrification, Energy Access Strategy etc.)<br/> ==
 
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.<ref>Ministère d’Energie et des Mines (January 27, 2011), „Décret exécutif n°11-33 du 27 janvier 2011 portant création, organisation et fonctionnement de l’institut algérien des énergies renouvelables“</ref>
 
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<ref name="RCREEE Algeria Renewable Energy Profile 2012: http://www.rcreee.org/member-states/algeria/">RCREEE Algeria Renewable Energy Profile 2012: http://www.rcreee.org/member-states/algeria/ </ref> 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.<ref name="World Future Council (WFC)/The Heinrich">World Future Council (WFC)/The HeinrichfckLRBöll Stiftung: Powering Africa through Feed-in Tariffs, February 2013, http://www.worldfuturecouncil.org/fileadmin/user_upload/PDF/Feed_in_Tariff/Powering_Africa_through_Feed-in_Tariffs.pdf</ref> 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.<ref name="RCREEE Algeria Renewable Energy Profile 2012: http://www.rcreee.org/member-states/algeria/">RCREEE Algeria Renewable Energy Profile 2012: http://www.rcreee.org/member-states/algeria/ </ref>
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
= Institutional Setup in the Energy Sector<br/> =
 
  
== Governmental Institutions<br/> ==
 
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.<ref>Richter, A., Buss, I., Dedorath, G., (2012), Capacity Assessment (Evaluation des Capacités du Secteur des Energies Renouvelables en Algérie, Berlin et al.: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, pg. 25</ref> MEM is assured control of the energy sector. Public institutions and organisations are subordinated to it.<ref>Ministère de l'Energie et des Mines, "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: -, Accessed: September 30, 2007, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites</ref> 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)'''.<ref>Richter, A., Buss, I., Dedorath, G., (2012), Capacity Assessment (Evaluation des Capacités du Secteur des Energies Renouvelables en Algérie, Berlin et al.: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, pg. 25</ref>
 
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.<ref>(ibid.)</ref> 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.<ref>L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), 2010, "Qui sommes nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aprue.org.dz/maitrise-energetique.html</ref> 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).<ref>L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), 2010, "Qui sommes nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aprue.org.dz/maitrise-energetique.html</ref> 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.<ref>New Energy Algeria Spa (NEAL) (2010), "Qui sommes-nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.neal-dz.net/index.php?option=com_content&amp;view=article&amp;id=275&amp;Itemid=124&amp;lang=fr</ref> 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.<ref>New Energy Algeria Spa (NEAL) (2010), "Qui sommes-nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.neal-dz.net/index.php?option=com_content&amp;view=article&amp;id=271&amp;Itemid=123&amp;lang=fr</ref>
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
== State-owned Enterprises<br/> ==
 
The Algerian energy sector is characterized by a few company networks with national enterprises numerously scattered over the respective branches of the energy sector.<br/>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).<ref>SONATRACH (2010), "Elements d'histoire des Hydrocarbures en Algerie", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonatrach-dz.com/NEW/histoire.html</ref> 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.<ref>El-Katiri, Dr. Mohammed (2010, 5), "Special Series - Sonatrach: An International Giant in the Making", Shrivenham (England): Defence Academy of the United Kingdom, pg. 3</ref> Overall, the SONATRACH group is made up of 29 subordinated companies and organisations.<ref>Ministère de l'Energie et des Mines, "Les Entreprises du Secteur", Last Updated: - , Accessed: October 4, 2011, URL: http://www.mem-algeria.org/francais/index.php?page=les-entreprises-du-secteur</ref>
 
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)<ref>Algerian Energy Company (AEC) (2011), "Présentation de l'Activite", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aec.dz/site/home.php</ref>, 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,<ref>Groupe SONELGAZ Spa, "Scoiété Algérienne de Production de l'Electricité", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonelgaz.dz/article.php3?id_article=67</ref> whereas the electricity transportation is mainly carried out by the Société Algérienne de Gestion du Réseau de Transport de l'Electricité (SGTE).<ref>Groupe SONELGAZ Sap, "Société Algérienne de Gestion du Réseau de Transport de l'Electricité", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonelgaz.dz/article.php3?id_article=68</ref> In total, the SONELGAZ group consists of 38 subordinated companies and organisations.<ref>Ministère de l'Energie et des Mines, "Les Entreprises du Secteur", Last Updated: - , Accessed: October 4, 2011, URL: http://www.mem-algeria.org/francais/index.php?page=les-entreprises-du-secteur</ref>
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
== Activities of Other Donors, Activities of NGOs<br/> ==
 
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.<ref>European Union (2007), "European Neighbourhood and Partnership Instrument - Algeria", pg. 17</ref> 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.<ref>European Union (2007), "European Neighbourhood and Partnership Instrument - Algeria", pg. 13-17</ref>
 
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.
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
= Existing Projects<br/> =
 
'''Renewable energy development programme ([[:file:Programme ENR et efficacite energetique DEU.pdf|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, <u>this programme will be arranged in four major phases:</u><ref>Ministère de l'Energie et des Mines (2011), "Programm für Erneuerbare Energien und Energieeffizienz", pg. 9</ref>
 
#Installed power capacity of 110 MW by 2013
 
#Expansion of installed power capacity up to 650 MW by 2015
 
#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
 
#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.
 
<u>Projects in the planning phase or under implementation:</u>
 
*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
 
 
<br/>
 
<br/>
'''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.<ref>Ministère de l'Energie et des Mines (2011), "Programm für Erneuerbare Energien und Energieeffizienz", pg. 14</ref> The announced goal is to provide the same service as usual - but with less energy being used in the process of it.<ref>Ministère de l'Energie et des Mines (2011), "Programm für Erneuerbare Energien und Energieeffizienz", pg. 14</ref> 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.
+
 
[[Algeria Energy Situation#toc|►Go to Top]]
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== Bilateral Energy Cooperation with Germany<br/> ==
 +
 
 +
Germany predominately imports crude oil from Algeria. Other imports are mainly chemical products and other raw materials.<ref name="http://www.auswaertiges-amt.de/sid_9F40593BD06ED154E741C183278B3C82/DE/Aussenpolitik/Laender/Laenderinfos/Algerien/Bilateral_node.html">http://www.auswaertiges-amt.de/sid_9F40593BD06ED154E741C183278B3C82/DE/Aussenpolitik/Laender/Laenderinfos/Algerien/Bilateral_node.html</ref><br/>
 +
 
 +
In March 2015, an energy partnership between Germany and Algeria was signed.<ref name="http://www.bmwi.de/DE/Themen/aussenwirtschaft,did=698198.html">http://www.bmwi.de/DE/Themen/aussenwirtschaft,did=698198.html</ref>
 +
 
 +
 
 +
 
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The National Metrology Institute of Germany ([https://www.ptb.de/cms/en.html Physikalisch-Technische Bundesanstalt - PTB]) is implementing the project "[[:File:PTB_project_Maghreb_Solar_95313_EN.pdf|Strengthening Quality Infrastructure for Solar Thermal Energy]]" in the Maghreb countries Algeria, Tunisia and Morocco. The focus lies on improving testing, metrology and certification of solar water heating systems and on supporting university institutes with regard to education of quality infrastructure in the solar energy sector.<br/>[[Algeria Energy Situation#toc|►Go to Top]]
 +
 
 +
 
 
= Further Information<br/> =
 
= Further Information<br/> =
  
*Official website of the Algerian MEM: [http://www.mem-algeria.org/english/index.php www.mem-algeria.org/english/index.php]
+
*Official website of the Algerian <span data-scayt_word="mem" data-scaytid="1503">MEM</span>: [http://www.mem-algeria.org/english/index.php www.mem-algeria.org/english/index.php]
 
*[https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html Algeria entry at The World Factbook]
 
*[https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html Algeria entry at The World Factbook]
*Official website of the Algerian "Commission de Régulation de l'Electricité et du Gaz": [http://www.creg.gov.dz/ http://www.creg.gov.dz/]
+
*Official website of the Algerian "Commission de <span data-scayt_word="régulation" data-scaytid="1508">Régulation</span> de <span data-scayt_word="l'electricité" data-scaytid="1509">l'Electricité</span> et du <span data-scayt_word="gaz" data-scaytid="1510">Gaz</span>": [http://www.creg.gov.dz/ http://www.creg.gov.dz/]<br/>
*Official website of the Algerian "Centre de Développement des Energies Renouvelables": [http://www.cder.dz/ http://www.cder.dz/]
+
*Official website of the Algerian "Centre de <span data-scayt_word="développement" data-scaytid="1515">Développement</span> des Energies <span data-scayt_word="renouvelables" data-scaytid="1516">Renouvelables</span>": [http://www.cder.dz/ http://www.cder.dz/]
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[[Algeria Energy Situation#toc|►Go to Top]]
 
[[Algeria Energy Situation#toc|►Go to Top]]
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= References<br/> =
 
= References<br/> =
<references />
 
[[Algeria Energy Situation#toc|►Go to Top]]
 
  
[[Category:Algeria]]
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<references /><br/><br/>[[Algeria Energy Situation#toc|►Go to Top]]
[[Category:MENA_(Middle_East_and_North_Africa)]]
 
[[Category:Country_Energy_Situation]]
 

Latest revision as of 10:32, 11 September 2020

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.

45,606,480 (2023)

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 (2023)

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.

239,899,491,128 (2023)

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

5,260.21 (2023)

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

100.00 (2022)

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. 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 occupied by the Sahara, which explains the arrangement of population density: 90% of the population is located in the north.[1] The mild Mediterranean climate coming from the coast is replaced by a dry desert climate further south.
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Energy Situation

Energy Data

Primary Energy Supply

In 2012, Algeria produced a total amount of 143,764 ktoe of energy. The main energy sources are crude oil (49.5%) and natural gas (50.4%).[2] In comparison, the numbers concerning the renewable energies are much smaller and close to zero. Other energy sources such as coal or nuclear power are not used. As large shares of the produces energy are exported, the primary energy supply in 2012 was 46,325 ktoe.


Consumption

Algeria's total final consumption (TFC) has been steadily increasing in recent years. While in 2010 the energy consumption added up to around 31,500 ktoe, in 2013 it had increased to 38,543 ktoe[2], which means that the country has seen an increase of 22% in just three years.
Taking a closer look at various sectors, the residential sector (including agriculture) is the one which consumes the most energy (43%), followed by the transport sector (36%) and the industry sector (21%). More detailed figures are outlined in the table below.

Table 1: Final energy consumption in Algeria in 2012 and 2013 by sector (ktoe)[3]

Sector 2012 2013 Change in %
Industry 7,939 8,229 +3.7
Transport 13,371 13,889 +3.9
Residential 15,068 16,425 +9.0
Total 36,377 38,543 +6.0


Import and Export

Algeria is a net exporting country. In the region, it is an important producer of hydrocarbons and also exports large amounts of natural gas to Europe. In 2012, Algeria imported a total of 5,031 ktoe, of which 4,639 ktoe were oil products. These amounts appear minor compared to the exports, which added up to 46,325 ktoe. The exports were mostly crude oil, oil products and natural gas.[4]


Subsidies

Algeria does not export all of its natural gas and oil production, but also relies on it for domestic consumption. Both resources are heavily subsidized. According to the International Monetary Fund (IMF), altogether, subsidies were at 18.3 % of GDP in 2012. Of this figure, 3.4 percentage points were subsidies for natural gas, 4.0 percentage points for electricity and 4.7 percentage points for petroleum products (including diesel, gasoline and LPG).[5]
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Renewable Energy

Although there is a high potential for the use of solar energy in Algeria, there are hardly any solar power plants so far. According to the MENA Renewables status report 2013 by REN21 the installed capacity of Photovoltaics (PV) was 7.1 MW in 2010 and 25 MW in 2012 of Concentrated Solar Power (CSP).[6] The report also gives estimates for capacity of renewable energy projects in the pipeline. For solar power, a capacity of 175 MW in the pipeline was estimated as well as 20 MW of wind power. However, the figures issued by the Regional Centre for Renewable Energy and Energy Efficiency (RCREE) are higher: They state an estimated capacity of 370 MW of solar power in the pipeline (all CSP) and 210 MW of wind power.[7]
Although there is some installed capacity of hydro power (228 MW), this energy source only plays a marginal role due to limited precipitation and high evaporation.
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Electricity

Installed Capacity and Generation

At the end of 2013, the installed capacity of electricity generation reached 15.1 GW. This is an increase of about 18% compared to the precedent year and due to the new power plants being installed and starting operations.[3]
Between 2001 and 2013, electricity production rose from 26,250 GWh to 57,397 GWh[8] . As table 2 below shows, the main source for the production of electricity is gas with a relative percentage to the total amount produced of over 92%. Although there are other sources of electricity, namely oil and hydro-power, these play only a minor role.

Table 2: Electricity production by source (2012)[8]:

Production from
in GWh in %
- Oil 3,727 6.49
- Gas 53,048 92.42
- Hydro 622 1.08
Total Production 57,397 100


Consumption

The residential sector is the biggest consumer in Algeria, representing 38.1% of the nationally consumed energy. Other important sectors are the tertiary sector (20.93%) and the manufacturing industry (17.83%). The details are outlined in table 3.

Table 3: Electricity consumption by sector (2012) in ktoe[9]:

Sector/ Product in ktoe in %
Agriculture 89,865 2.42
Public works 17,742 0.48
Hydraulics 468,786 12.63
Mines and quarries 27,365 0.74
Manufacturing industry 661,555 17.83
Gas and oil industry 273,239 7.36
Residential 1,413,960 38.10
Tertiary 776,735 20.93
Transport 11,670 0.31
Total 3,710,917 100


Grid

In 2012 the total length of the transmission network was 23,802 km which was an increase of 6.29% in comparison to 2011. While the electrification rate was 57% in 1977, as of 2010, 99.3% of the population has now access to electricity. Algeria is connected with neighboring grids of Tunisia and Morocco by a 440 kV line each.[3]

Electricity Prices

In 2013, electricity prices were fixed at 0.03 USD/kwh for all segments[10]. According to the US Energy Information Administration, this price has been in place since 2005.[11]
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Energy Policy

General Information

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.[12] 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.[12] In Article 5 it furthermore commits to the necessary studies and research and the promotion of sources of renewable energy.[12]
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Renewable Energy Policy

In February 2015, the Algerian Government adopted an ambitious Renewable Energy programme. It envisions the installation of 22 GW of RE by 2030, which is almost double than what was set as a target before (12 GW) and equals a share of about 27% RE in total electricity production. Of these 22 GW, about 4.5 GW are supposed to be installed by 2020. The targets per technology are set according to two phases as outlined in the table below:

Table 4:  The Algerian RE target[13]

Source
1st phase 2015-2020 [MW]
2nd phase 2021-2030 Mw]
Total [MW]
Solar PV
3,000
10,575
13,575
Wind
1,010
4,000
5,010
CSP
-
2,000
2,000
Cogeneration
150
250
400
Biomass
360
640
1,000
Geothermal
5
10
15
Total
4,525
17,475
22,000


RE projects are entitled to sell to the distributor the power produced at a guaranteed fixed price for 20 years, according to Décret Exécutif 13-218 and an Arrêté of 2/2/14. The Feed-in-tariffs vary according to plant capacity. For wind they are: >5 MW 9.5 €ct, <5 MW 11.9 €ct; for solar PV: >5 MW 11.6 €ct, <5 MW 14.5 €ct. Tariffs will be adjusted 5 years after starting operations, up to a maximum of 15%. CSP projects are so far not included in the FIT scheme.
An RE Fund has been set up by Executive Decree 11-423; to be financed through a 0.5% levy on oil tax revenues.
Priority grid access for RE project is provided by the Executive Decrees 06-428 and 06-429 of 26/11/06 and the Order of 21/02/08.
Land ownership for foreign investors requires prior approval. Most projects take place on state owned land under a concession regime. There are no priority development zones for RE.
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Energy Efficiency Policy

Also in February 2015, the Algerian government announced a new national programme on energy efficiency (EE) for the years 2015 to 2030. The EE programme mainly targets three sectors: the building sector, transport and industry.

In the building sector, more than 30 million toe are supposed to be saved by 2030. This will be achieved through innovative technologies and thermal insulation of constructions. Also, economic lamps and solar water heaters will contribute. In the transport sector, the target is to save more than 15 million toe. The government aims to use fuels which are widely available and least polluting, like LNG and natural gas, in order to reduce the use of gasoline. The industry sector is supposed to contribute 34 million toe by 2030.[14]

In April 2015, more details about the programme on energy efficiency were announced. About 900 billion DA (about 8 billion EUR) are to be invested, of which the Algerian government will cover 54%. The objectives include the thermal insulation of 100,000 homes per year,  distributing 10 million energy efficient lamps and switching 1.3 million vehicles to liquid petrol gas. Through the measures, 180.000 jobs are supposed to be created.[15]


Key Actors in the Energy Sector

Governmental Bodies and Agencies

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.[16] MEM is assured control of the energy sector. Public institutions and organisations are subordinated to it.[17] 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).[16] On the basis of article 63 of the budgetary law, the FNER was founded in 2010 and is financed by 0.5% of revenues gained from the export of fossil energy resources.[18] It is institutionalised by the special purposes account no. 302-131. In a more global context, the fund's main task is the reinforced development of renewable energies in Algeria. 

Although the trend and global awareness of climate change and the role of energy production have 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 founded in 1985.[19] According to decree no. 99-09, dating to 1999, APRUE's main tasks include the implementation of the Programme National de Maîtrisse de l'Energie (PNME) and sectorial projects involving partnerships with other sectors (e.g. industry, transportation).[19] Having said that, the description of competencies and missions are formulated quite vaguely. Another organisation in this spectrum is New Energy Algeria (NEAL) which was founded in 2002.[20] 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.[20]

The Commission de Régulation de l’Electricité et du Gaz (CREG) was created under law no. 02-01 of 2002. CREG is responsible to watch over the electricity and national gas markets in order to protect both the interests of the consumers and those of the operators. There are three main missions: realise and control public service, consult the government on organisation and functioning of electricity and gas markets and guard and control compliance with the pertinent laws.
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Utilities

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 founded by the government in 1963 (presidential decree no. 63 - 491 December 31st, 1963).[21] SONATRACH is the main player in terms of oil and gas 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.[22] Overall, the SONATRACH group is made up of 29 subordinated companies and organisations.[17] Just as SONATRACH, Groupe SONELGAZ, responsible for the production and commercialisation of electricity and the national distribution of natural gas, is likewise state-owned. Together, the two companies are the most important and influential players in the Algerian energy sector. In 2001, the Algerian Energy Company (AEC) was founded[23], 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,[24] whereas the electricity transportation is mainly carried out by the Société Algérienne de Gestion du Réseau de Transport de l'Electricité (SGTE).[25] In total, the SONELGAZ group consists of 38 subordinated companies and organisations.[17]
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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Others

In 2013, 54% of Algeria's electricity was produced by independent power producers (IPPs). The companies are Kahrama, Shariket Kahraba Berrouaghia (SKB), Shariket Kahraba Koudiet Eddraouche (SKD), Shariket Kahraba Hadjret Ennouss (SKH), Shariket Kahraba Skikda (SKS) and Shariket Kahraba Terga (SKT).[3]

Energy Cooperation

Since Algeria has an abundance of natural resources, in particular fossil fuels, a number of countries have expressed their interest to cooperate in the energy sector. Amongst the latest are Norway[26], Niger[27], Kenya[28] and the Netherlands[29]. In cooperation with Russia, Algeria plans to build its first nuclear power plant in 2025[30].

The European Union also plans to develop a strategic partnership with Algeria in order to diversify natural gas import sources.[31]



Bilateral Energy Cooperation with Germany

Germany predominately imports crude oil from Algeria. Other imports are mainly chemical products and other raw materials.[32]

In March 2015, an energy partnership between Germany and Algeria was signed.[33]


The National Metrology Institute of Germany (Physikalisch-Technische Bundesanstalt - PTB) is implementing the project "Strengthening Quality Infrastructure for Solar Thermal Energy" in the Maghreb countries Algeria, Tunisia and Morocco. The focus lies on improving testing, metrology and certification of solar water heating systems and on supporting university institutes with regard to education of quality infrastructure in the solar energy sector.
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Further Information

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References

  1. Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/
  2. 2.0 2.1 http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances
  3. 3.0 3.1 3.2 3.3 http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf
  4. http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=Balances&year=2012
  5. http://www.imf.org/external/pubs/ft/scr/2014/cr14342.pdf
  6. http://www.ren21.net/Portals/0/documents/activities/Regional%20Reports/MENA_2013_lowres.pdf
  7. http://www.rcreee.org/sites/default/files/algeria_fact_sheet_print.pdf
  8. 8.0 8.1 http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=electricityandheat
  9. http://www.aprue.org.dz/PUBLICATION%20CONSOMMATION%20ENERGÉTIQUE%20FINALE%202012.pdf
  10. http://www.rcreee.org/sites/default/files/rs_latest_-electricity_-prices_schemes_in_rcreee_-ms_6-2013_en.pdf
  11. http://www.eia.gov/countries/cab.cfm?fips=ag
  12. 12.0 12.1 12.2 Ministère de l'Energie et des Mines (2007), "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: - , Accessed: September 30, 2011, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites
  13. http://portail.cder.dz/spip.php?article4565
  14. http://portail.cder.dz/spip.php?article4445
  15. http://portail.cder.dz/spip.php?article4579
  16. 16.0 16.1 Richter, A., Buss, I., Dedorath, G., (2012), Capacity Assessment (Evaluation des Capacités du Secteur des Energies Renouvelables en Algérie, Berlin et al.: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, pg. 25
  17. 17.0 17.1 17.2 Ministère de l'Energie et des Mines, "Décret exécutif n° 07-266 du 27 Chaâbane 1428 correspondant au 9 Septembre 2007 fixant "Les attributions du Ministre de l'Energie et des Mines"", Last Updated: -, Accessed: September 30, 2007, URL: http://www.mem-algeria.org/english/index.php?page=missions-et-domaines-d-activites Cite error: Invalid <ref> tag; name "Ministère de l'Energie et des Mines," defined multiple times with different content Cite error: Invalid <ref> tag; name "Ministère de l'Energie et des Mines," defined multiple times with different content
  18. (ibid.)
  19. 19.0 19.1 L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie (APRUE), 2010, "Qui sommes nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aprue.org.dz/maitrise-energetique.html
  20. 20.0 20.1 New Energy Algeria Spa (NEAL) (2010), "Qui sommes-nous?", Last Updated: - , Accessed: October 4, 2011, URL: http://www.neal-dz.net/index.php?option=com_content&view=article&id=275&Itemid=124&lang=fr Cite error: Invalid <ref> tag; name "New Energy Algeria Spa (NEAL) (2010)," defined multiple times with different content
  21. SONATRACH (2010), "Elements d'histoire des Hydrocarbures en Algerie", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonatrach-dz.com/NEW/histoire.html
  22. El-Katiri, Dr. Mohammed (2010, 5), "Special Series - Sonatrach: An International Giant in the Making", Shrivenham (England): Defence Academy of the United Kingdom, pg. 3
  23. Algerian Energy Company (AEC) (2011), "Présentation de l'Activite", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aec.dz/site/home.php
  24. Groupe SONELGAZ Spa, "Scoiété Algérienne de Production de l'Electricité", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonelgaz.dz/article.php3?id_article=67
  25. Groupe SONELGAZ Sap, "Société Algérienne de Gestion du Réseau de Transport de l'Electricité", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonelgaz.dz/article.php3?id_article=68
  26. http://www.aps.dz/en/economy/6486-algeria-norway-common-willingness-to-strengthen-energy-cooperation
  27. http://www.aps.dz/en/economy/5824-algeria,-niger-seek-to-boost-energy-cooperation
  28. http://www.president.go.ke/kenya-and-algeria-sign-pact-boosting-cooperation-in-energy-sector/
  29. http://www.aps.dz/en/economy/5984-algeria,-netherlands-willing-to-boost-energy-cooperation
  30. http://www.aps.dz/en/economy/3972-algerian,-russia-seal-nuclear-energy-cooperation-deal
  31. http://www.energypost.eu/energy-union-holistic-approach-energy-transition/
  32. http://www.auswaertiges-amt.de/sid_9F40593BD06ED154E741C183278B3C82/DE/Aussenpolitik/Laender/Laenderinfos/Algerien/Bilateral_node.html
  33. http://www.bmwi.de/DE/Themen/aussenwirtschaft,did=698198.html



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