Latest revision as of 10:32, 11 September 2020

Algeria

Capital:

Algiers

Region:

Middle East & North Africa

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

Official website of the Algerian MEM: www.mem-algeria.org/english/index.php
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/
Official website of the Algerian "Centre de Développement des Energies Renouvelables": http://www.cder.dz/

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References

↑ Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/
↑ ^2.0 ^2.1 http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances
↑ ^3.0 ^3.1 ^3.2 ^3.3 http://www.mem-algeria.org/fr/statistiques/Bilan_Energetique_National_2013_edition_2014.pdf
↑ http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=Balances&year=2012
↑ http://www.imf.org/external/pubs/ft/scr/2014/cr14342.pdf
↑ http://www.ren21.net/Portals/0/documents/activities/Regional%20Reports/MENA_2013_lowres.pdf
↑ http://www.rcreee.org/sites/default/files/algeria_fact_sheet_print.pdf
↑ ^8.0 ^8.1 http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=electricityandheat
↑ http://www.aprue.org.dz/PUBLICATION%20CONSOMMATION%20ENERGÉTIQUE%20FINALE%202012.pdf
↑ http://www.rcreee.org/sites/default/files/rs_latest_-electricity_-prices_schemes_in_rcreee_-ms_6-2013_en.pdf
↑ http://www.eia.gov/countries/cab.cfm?fips=ag
↑ ^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
↑ http://portail.cder.dz/spip.php?article4565
↑ http://portail.cder.dz/spip.php?article4445
↑ http://portail.cder.dz/spip.php?article4579
↑ ^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
↑ ^17.0 ^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
↑ (ibid.)
↑ ^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
↑ ^20.0 ^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
↑ SONATRACH (2010), "Elements d'histoire des Hydrocarbures en Algerie", Last Updated: - , Accessed: October 4, 2011, URL: http://www.sonatrach-dz.com/NEW/histoire.html
↑ 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
↑ Algerian Energy Company (AEC) (2011), "Présentation de l'Activite", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aec.dz/site/home.php
↑ 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
↑ 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
↑ http://www.aps.dz/en/economy/6486-algeria-norway-common-willingness-to-strengthen-energy-cooperation
↑ http://www.aps.dz/en/economy/5824-algeria,-niger-seek-to-boost-energy-cooperation
↑ http://www.president.go.ke/kenya-and-algeria-sign-pact-boosting-cooperation-in-energy-sector/
↑ http://www.aps.dz/en/economy/5984-algeria,-netherlands-willing-to-boost-energy-cooperation
↑ http://www.aps.dz/en/economy/3972-algerian,-russia-seal-nuclear-energy-cooperation-deal
↑ http://www.energypost.eu/energy-union-holistic-approach-energy-transition/
↑ http://www.auswaertiges-amt.de/sid_9F40593BD06ED154E741C183278B3C82/DE/Aussenpolitik/Laender/Laenderinfos/Algerien/Bilateral_node.html
↑ http://www.bmwi.de/DE/Themen/aussenwirtschaft,did=698198.html

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[Deutsche_Au.C3.9Fenhandelskammer_.28German_Chamber_of_Foreign_Trade_-_AHK.29.2C_Last_Updated:_2011.2C_Access:_September_16.2C_2011.2C_URL:_http:.2F.2Falgerien.ahk.de.2Falgerien.2F-1] Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/

[http:.2F.2Fwww.iea.org.2Fstatistics.2Fstatisticssearch.2Freport.2F.3Fyear.3D2012.26country.3DALGERIA.26product.3DBalances-2] 2.0 ^2.1 http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=ALGERIA&product=Balances

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[http:.2F.2Fwww.rcreee.org.2Fsites.2Fdefault.2Ffiles.2Falgeria_fact_sheet_print.pdf-7] ttp://www.rcreee.org/sites/default/files/algeria_fact_sheet_print.pdf

[http:.2F.2Fwww.iea.org.2Fstatistics.2Fstatisticssearch.2Freport.2F.3Fcountry.3DALGERIA.26product.3Delectricityandheat-8] 8.0 ^8.1 http://www.iea.org/statistics/statisticssearch/report/?country=ALGERIA&product=electricityandheat

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[http:.2F.2Fwww.eia.gov.2Fcountries.2Fcab.cfm.3Ffips.3Dag-11] ttp://www.eia.gov/countries/cab.cfm?fips=ag

[Minist.C3.A8re_de_l.27Energie_et_des_Mines_.282007.29.2C-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

[http:.2F.2Fportail.cder.dz.2Fspip.php.3Farticle4565-13] ttp://portail.cder.dz/spip.php?article4565

[http:.2F.2Fportail.cder.dz.2Fspip.php.3Farticle4445-14] ttp://portail.cder.dz/spip.php?article4445

[http:.2F.2Fportail.cder.dz.2Fspip.php.3Farticle4579-15] ttp://portail.cder.dz/spip.php?article4579

[Richter.2C_A..2C_Buss.2C_I..2C_Dedorath.2C_G..2C_.282012.29.2C_Capacity_Assessment_.28Evaluation_des_Capacit.C3.A9s_du_Secteur_des_Energies_Renouvelables_en_Alg.C3.A9rie.2C_Berlin_et_al.:_Deutsche_Gesellschaft_f.C3.BCr_Internationale_Zusammenarbeit_.28GIZ.29_GmbH.2C_pg._25-16] 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

[Minist.C3.A8re_de_l.27Energie_et_des_Mines.2C-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

[.28ibid..29-18] (ibid.)

[L.E2.80.99Agence_Nationale_pour_la_Promotion_et_la_Rationalisation_de_l.E2.80.99Utilisation_de_l.E2.80.99Energie_.28APRUE.29.2C_2010.2C-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

[New_Energy_Algeria_Spa_.28NEAL.29_.282010.29.2C-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

[SONATRACH_.282010.29.2C-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

[El-Katiri.2C_Dr._Mohammed_.282010.2C_5.29.2C-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

[Algerian_Energy_Company_.28AEC.29_.282011.29.2C-23] Algerian Energy Company (AEC) (2011), "Présentation de l'Activite", Last Updated: - , Accessed: October 4, 2011, URL: http://www.aec.dz/site/home.php

[Groupe_SONELGAZ_Spa.2C-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

[Groupe_SONELGAZ_Sap.2C-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

[http:.2F.2Fwww.aps.dz.2Fen.2Feconomy.2F6486-algeria-norway-common-willingness-to-strengthen-energy-cooperation-26] ttp://www.aps.dz/en/economy/6486-algeria-norway-common-willingness-to-strengthen-energy-cooperation

[http:.2F.2Fwww.aps.dz.2Fen.2Feconomy.2F5824-algeria.2C-niger-seek-to-boost-energy-cooperation-27] ttp://www.aps.dz/en/economy/5824-algeria,-niger-seek-to-boost-energy-cooperation

[http:.2F.2Fwww.president.go.ke.2Fkenya-and-algeria-sign-pact-boosting-cooperation-in-energy-sector.2F-28] ttp://www.president.go.ke/kenya-and-algeria-sign-pact-boosting-cooperation-in-energy-sector/

[http:.2F.2Fwww.aps.dz.2Fen.2Feconomy.2F5984-algeria.2C-netherlands-willing-to-boost-energy-cooperation-29] ttp://www.aps.dz/en/economy/5984-algeria,-netherlands-willing-to-boost-energy-cooperation

[http:.2F.2Fwww.aps.dz.2Fen.2Feconomy.2F3972-algerian.2C-russia-seal-nuclear-energy-cooperation-deal-30] ttp://www.aps.dz/en/economy/3972-algerian,-russia-seal-nuclear-energy-cooperation-deal

[http:.2F.2Fwww.energypost.eu.2Fenergy-union-holistic-approach-energy-transition.2F-31] ttp://www.energypost.eu/energy-union-holistic-approach-energy-transition/

[http:.2F.2Fwww.auswaertiges-amt.de.2Fsid_9F40593BD06ED154E741C183278B3C82.2FDE.2FAussenpolitik.2FLaender.2FLaenderinfos.2FAlgerien.2FBilateral_node.html-32] ttp://www.auswaertiges-amt.de/sid_9F40593BD06ED154E741C183278B3C82/DE/Aussenpolitik/Laender/Laenderinfos/Algerien/Bilateral_node.html

[http:.2F.2Fwww.bmwi.de.2FDE.2FThemen.2Faussenwirtschaft.2Cdid.3D698198.html-33] ttp://www.bmwi.de/DE/Themen/aussenwirtschaft,did=698198.html

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Difference between revisions of "Algeria Energy Situation"

Latest revision as of 10:32, 11 September 2020

Contents

Introduction

Energy Situation

Energy Data

Primary Energy Supply

Consumption

Import and Export

Subsidies

Renewable Energy

Electricity

Installed Capacity and Generation

Consumption

Grid

Electricity Prices

Energy Policy

General Information

Renewable Energy Policy

Energy Efficiency Policy

Key Actors in the Energy Sector

Governmental Bodies and Agencies

Utilities

Others

Energy Cooperation

Bilateral Energy Cooperation with Germany

Further Information

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@@ Line 1: / Line 1: @@
-= Overview<br/> =
+{{CES Country|CES Country Name=Algeria
+|CES Country Capital=Algiers
-{| style="float: right" border="1" cellpadding="0" cellspacing="0" width="400"
+|CES Country Region Middle East and North Africa = Middle East & North Africa
-|-
+|CES Country Coordinates=28.0000° N, 2.0000° E
-| colspan="4" align="center" | '''People's Democratic Republic of Algeria'''
+}}
-|-
-| &nbsp; [[File:Flag of Algeria.png|border|center|200x150px|Flag of Algeria.png]]<br/>
-| &nbsp; [[File:Location Algeria.png|center|100x100px|Location Algeria.png]]<br/>
-|-
-|
-Capital
-|
-Algiers ([http://toolserver.org/%7Egeohack/geohack.php?pagename=Algeria&params=36_42_N_3_13_E_type:country 36°42′N 3°13′E])
-|-
-|
-Official language(s)
-|
-Arabic, french
-|-
-|
-Government
-|
-Semi-presidential republic
-|-
-|
-President
-|
-Abdelaziz Bouteflika
-|-
-|
-Prime Minister
-|
-Ahmed Ouyahia
-|-
-|
-Total area
-|
-,381,741 km<sup>2</sup>
-|-
-|
-Population
-|
-,423,000 (2010 estimate)
-|-
-|
-GDP (nominal)
-|
-$158.969 billion
-|-
-|
-GDP Per capita
-|
-$4,478
-|-
-|
-Currency
-|
-Algerian dinar (DZD)
-|-
-|
-Time zone
-|
-CET (UTC+01)
-|-
-|
-Calling code
-|
-+213
-|}
-{| class="FCK__ShowTableBorders" align="left" border="0" cellpadding="1" cellspacing="1" width="545"
-|-
-| __TOC__
-|}
-<div style="clear: both"></div><div class="draft"></div><div class="draft"></div>
-Algeria is located in North Africa and is bordering Tunisia and Libya in the east, Niger and Mali in the south, and Mauritania, Western Sahara, and Morocco in the west. In the north, Algeria’s vast coast of over 1.200 km extends to the Mediterranean Sea. Being part of the Maghreb, Algeria is furthermore considered to be a part of the MENA-region. With its more than two million km2 of national territory, Algeria is by far the largest North African country. However, most of its national territory is being occupied by the Sahara, which thus explains the population of roughly 33 million people.<ref>Auswärtiges Amt (German Ministry of Foreign Affairs), Last Updated: October, 2010, Access: September 16, 2011, URL: http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01-Nodes_Uebersichtsseiten/Algerien_node.html</ref> This is also expressed in 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 being replaced by a dry desert climate while moving south. The official language is Arabic, although French can be considered to be a common lingua franca, whereas in some areas Berber dialects can be common as well.<ref>Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html</ref> Having a parliament that consists of a national assembly and a senate, Algeria is a republic with Abdelaziz Bouteflika, who has been reelected with 90.2% of votes in 2009,<ref>Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html</ref> as its president since 1999.<ref>Auswärtiges Amt (German Ministry of Foreign Affairs), Last Updated: October, 2010, Access: September 16, 2011, URL: http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01-Nodes_Uebersichtsseiten/Algerien_node.html</ref> Ethnic groups are made up of a vast majority of Arab-Berber (99%). However, most Algerians identify themselves with their Berber heritage rather than their Arab one.<ref>Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html</ref> The state religion is Sunni Muslim, likewise represented by a vast majority, while Christians and Jews make up less than 3% of the population.<ref>Auswärtiges Amt (German Ministry of Foreign Affairs), Last Updated: October, 2010, Access: September 16, 2011, URL: http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01-Nodes_Uebersichtsseiten/Algerien_node.html</ref><br/>Minerals that can be found in this region are amongst others oil, gas, iron, and lead.<ref>Deutsche Außenhandelskammer (German Chamber of Foreign Trade - AHK), Last Updated: 2011, Access: September 16, 2011, URL: http://algerien.ahk.de/algerien/</ref> Together with agricultural goods, they make up the majority of export goods. Furthermore, they are the reason, why Algeria is part in international economic conglomerates, such as the OPEC or the OAPIC. Algeria’s '''gross domestic product (GDP)''' has been constantly rising in the last couple of years, bringing it to the approximate amount of $160 billion in 2010. The GDP per capita is hence about $7.300.<ref>Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html</ref><br/>Algeria has a number of transnational issues to deal with, including an international dispute with the Moroccan administration of Western Sahara and illegal schemes in form of smuggling, human trafficking and forced labor.<ref>Central Intelligence Agency (CIA) - World Factbook, Last Updated: August 23, 2011, Accessed: September 16, 2011, URL: https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html</ref>
+= 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 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<br/> =
-== Energy Supply ==
+== Energy Data<br/> ==
-In 2008, Algeria has produced a total amount of 162,044 ktoe of energy, which is about 1,884,571 GWh. Its main energy source is crude oil (54.4%), followed by gas (45.5%). In comparison, the numbers concerning the renewable energies are much smaller and close to zero. Other energy sources, such as coal, nuclear power or heat are in fact zero, thus giving an impression that Algeria has quite a unilateral energy landscape. Published by the International Energy Agency (IEA), the numbers below offer more detail to Algeria's energy production:
-<u>Table 1: Total Energy Production of Algeria (2008)</u><ref>International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Last Updated: - , Accessed: September 19, 2011, URL: ">http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ">http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ </ref><u>:</u>
-{| style="width: 100%" border="1" cellpadding="2" cellspacing="2" width="331"
-|-
-! scope="col" |
-Energy Source
-! scope="col" |
-in ktoe
-! scope="col" |
-in&nbsp;%
-|-
-|
-Coal and&nbsp;Peat
-|
-|
-|-
-|
-Crude Oil
-|
-,187
-|
-.4
-|-
-|
-Oil Products
-|
-|
+=== Primary Energy Supply<br/> ===
-|-
+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/>
-|
-Gas
-|
+<br/>
-,783
-|
+=== Consumption<br/> ===
-.5
+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 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>
+{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 |-
-|
+| Sector
-Nuclear
+| 2012
+| 2013
-|
+| Change in&nbsp;%
-|
 |-
-|
+| Industry
-Hydro
+| 7,939
+| 8,229
-|
+| +3.7
-|
-.02
 |-
-|
+| Transport
-Geothermal, solar, etc.
+| 13,371
+| 13,889
-|
+| +3.9
-|
 |-
-|
+| Residential
-Combustible renewables and waste
+| 15,068
+| 16,425
-|
+| +9.0
-|
-.03
-|-
-|
-Electricity
-|
-|
-|-
-|
-Heat
-|
-|
 |-
-|
+| Total
-Total<sup>1</sup>
+| 36,377
+| 38,543
-|
+| +6.0
-,044
 |}
+<br/>
+=== Import and Export<br/> ===
-Taking the table above table 1 into consideration, the table below ("Total Primary Energy Supply")&nbsp;offers quite a similar picture. It might yet seem suprising, that gas is now the main energy source with more than 60%, while oil only makes up 37% of the energy supply. This curiosity can be explained by the massive amount of crude oil (-55,002 ktoe) and oil products (-19,334 ktoe) Algeria is exporting and thus decreasing the amount of available oil.<ref>International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Last Updated: - , Accessed: September 19, 2011, URL: http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ</ref> Plenty of gas is being exported, as well&nbsp;(-51,259 ktoe).<ref>International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Last Updated: - , Accessed: September 19, 2011, URL: http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ</ref>
+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/>
-<u>Table 2:&nbsp;Total Primary Energy Supply of Algeria (2008)<ref> International Energy Agency, ©2011, "2008 Energy Balance for Algeria", Accessed: September 19, 2011, URL: ">http://www.iea.org/stats/balancetable.asp http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ">http://www.iea.org/stats/balancetable.asp? COUNTRY_CODE=DZ</ref>:</u>
-{| style="height: 352px; width: 100%" border="1" cellpadding="2" cellspacing="2" width="332"
-|-
-! scope="col" |
-Energy Source
-! scope="col" |
-in ktoe
-! scope="col" |
-in&nbsp;%
-|-
-|
-Coal and Peat
-|
-|
-.0
-|-
-|
-Oil
-|
-,721
-|
-.0
-|-
-|
-Gas
-|
-,524
-|
-.8
-|-
+<br/>
-|
-Nuclear
-|
+=== 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/>
-.0
-|-
+== Renewable Energy<br/> ==
-|
-Hydro
-|
+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/>
+<div><br/></div>
+== Electricity<br/> ==
-|
+=== Installed Capacity and Generation<br/> ===
-.01
+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/>
+<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="1"
 |-
-|
+| '''Production from'''<br/>
-Geothermal, solar, etc.
+| '''in <span data-scayt_word="gwh" data-scaytid="1082">GWh</span>'''
+| '''in&nbsp;%'''<br/>
-|
-|
-.0
 |-
-|
+| - Oil
-Combustible renewables and waste
+| 3,727
+| 6.49
-|
-|
-.1
 |-
-|
+| - Gas
-Electricity
+| 53,048
+| 92.42
-|
--4
-|
--0.1
 |-
-|
+| - Hydro
-Heat
+| 622
+| 1.08
-|
-|
-.0
 |-
-|
+| Total Production
-Total<sup>1</sup>
+| 57,397
+| 100
-|
-,069
-|
 |}
-<sup>1</sup>Total may not add up due to roundings.
+<br/>
-Gas in particular appears to be one of the main energy sources for a somewhat mid-term solution. According to the&nbsp;IEA projections, Algeria will have an average growth rate of about 2,7% in natural gas production until 2035.<ref>International Energy Agency (IEA) (2011), "World Energy Outlook 2011 - Are we entering a golde age of Gas?", pg. 27</ref> Having said that, most gas production is expected to be in the form of conventional gas,<ref>International Energy Agency (IEA) (2011), "World Energy Outlook 2011 - Are we entering a golden age of gas?", pg. 30</ref> as Algeria (together with Nigeria)&nbsp;is expected to be the leading protagonist in&nbsp;gas production growth in Africa,<ref>International Energy Agency (IEA) (2011), "World Energy Outlook 2011 - Are we entering a golde age of gas?", pg. 28</ref> thus&nbsp;augmenting export rates&nbsp;once again, after they had dropped in 2009.<ref>International Energy Agency (IEA) (2011), "World Energy Outlook 2011 - Are we entering a golden age of gas?", pg. 31</ref>&nbsp;In addition, the technology of liquefied natural gas (LNG) will be installed and exploited by 2013. According to the IEA, two major LNG liquefaction&nbsp;plants&nbsp;are planned for Algeria&nbsp;- Skikda and and Gassi Touil.<ref>International Energy Agency (IEA) (2011), "World Energy Outlook 2011 - Are we entering a golden age of gas?", pg. 68</ref>&nbsp;Both projects envision a starting point of construction in 2013.<ref>International Energy Agency (IEA) (2011), "World Energy Outlook - Are we entering a golden age of gas?", pg. 68</ref>
-=== Electricity<br/> ===
-<span style="color:#ff0000;"></span>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>&nbsp;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 8606 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 elecricity 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>
-<span style="color:#ff0000;"></span>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)&nbsp;of electricity.
-<u>Table 3:&nbsp;Electricity Production and Supply of Algeria (2008)<ref>International Energy Agency, ©2011, "Electricity/Heat in Algeria 2008", Last updated: - , Accessed: September 20, 2011, URL:http://www.iea.org/stats/electricitydata.asp?COUNTRY_CODE=DZ </ref>:</u>
-{| style="height: 504px; width: 100%" border="1" cellpadding="2" cellspacing="2" width="335"
-|-
-! scope="col" |
-Energy Source
-! scope="col" |
-in&nbsp;GWh
-! scope="col" |
-in&nbsp;%<sup>2,3</sup>
-|-
-|
-Coal
-|
-|
-.0
-|-
-|
-Oil
-|
-|
-.0
-|-
-|
-Gas
-|
-,161
-|
-.3
-|-
-|
-Biomass
-|
-|
-.0
-|-
-|
-Waste
-|
-|
-.0
-|-
-|
-Nuclear
-|
-|
-.0
-|-
-|
-Hydro
-|
-|
-.7
-|-
-|
-Geothermal
-|
-|
-.0
-|-
-|
-Solar&nbsp;PV
-|
-|
-.0
-|-
-|
-Solar thermal
-|
-|
-.0
-|-
-|
-Wind
-|
-|
-.0
-|-
-|
-Tide
-|
-|
-.0
-|-
-|
-Other sources
-|
-|
-.0
-|-
-|
-'''''Total Production'''''
-|
-'''''40,236'''''
-|
+=== Consumption<br/> ===
-.0
+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"
 |-
-|
+| '''Sector/ Product'''
-Imports
+| '''in <span data-scayt_word="ktoe" data-scaytid="1084">ktoe</span>'''
+| '''in&nbsp;%'''
-|
-|
-.7
 |-
-|
+| Agriculture
-Exports
+| 89,865
+| 2.42
-|
--323
-|
--0.8
 |-
-|
+| Public works
-'''''Domestic Supply'''''
+| 17,742
+| 0.48
-|
-'''''40,187'''''
-|
-.9
-|}
-<sup>2</sup>In relation&nbsp;to the amount given by "Total Production"
-<sup>3</sup>Total may not add up due to roundings and&nbsp;overlapping&nbsp;percentages.
-According to the CREG Rapport d'activité of 2010 and the Rapport d'activité of 2011, the percental share of electricity production among the state-run and '''independent producers (IPP)''' looks as follows:
-<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>
-{| style="height: 200px; width: 100%" border="1" cellpadding="1" cellspacing="1"
-|-
-! scope="col" | &nbsp;Operator<br/>
-! scope="col" | % (2010)
-! scope="col" |
-% (2011)
 |-
-|
+| Hydraulics
-<span class="titre_article">Sonelgaz Production d'Electricité (<span class="spip_surligne">SPE</span>)</span>
+| 468,786
+| 12.63
-| <p style="text-align: center;">54</p>
-| <p style="text-align: center">56</p>
 |-
-|
+| Mines and quarries
-<span class="st">Sharikat Kahraba Hadj</span><span class="st">rat-Ennous</span> (SKH)
+| 27,365
+| 0.74
-| <p style="text-align: center;">21</p>
-| <p style="text-align: center">20</p>
 |-
-|
+| Manufacturing industry
-Sharikat Kahraba Skikda (SKS)
+| 661,555
+| 17.83
-| <p style="text-align: center;">13</p>
-| <p style="text-align: center">12</p>
 |-
-|
+| Gas and oil industry
-Sharikat Kahraba Berrouaghia (SKB)
+| 273,239
+| 7.36
-| <p style="text-align: center;">6</p>
-| <p style="text-align: center">6</p>
 |-
-|
+| Residential
-Kahrama
+| 1,413,960
+| 38.10
-| <p style="text-align: center;">6</p>
-| <p style="text-align: center">5</p>
 |-
-|
+| Tertiary
-Solar Power Plant One (SPP1)
+| 776,735
+| 20.93
-| <p style="text-align: center;">-</p>
-| <p style="text-align: center;">1</p>
 |-
-|
+| Transport
-<span style="line-height: 1.5em;">Sharikat Kahraba Terga (</span>SKT)
+| 11,670
+| 0.31
-| <p style="text-align: center;">-</p>
-| <p style="text-align: center;">0,16</p>
 |-
-|
+| Total
-CEVITAL
+| 3,710,917
+| 100
-| <p style="text-align: center;">-</p>
-| <p style="text-align: center;">0,001</p>
 |}
+<br/>
+=== Grid<br/> ===
-== Energy Consumption ==
+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/>
-Compared to&nbsp;2008, Algeria has increased its energy consumption in 2009 by almost 5%.<ref>Ministère de l'Energie et des Mines (2010), "Bilan Energetique National de l'année 2009", pg. 19.</ref> In 2008, Algeria's '''total final consumption (TFC)''' added up to 23,447 ktoe units, equal to 272,688.6 GWh.
+=== Electricity Prices<br/> ===
-&nbsp;
+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/>
-<u>Table 4:&nbsp;Algeria's TFC of Energy (2008)<ref>International Energy Agency, ©2011, "Electricity/Heat in Algeria 2008", Last updated: - , Accessed: September 20, 2011, URL: http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=DZ</ref>:</u>
+= 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/>
-{| style="width: 100%" border="1" cellpadding="2" cellspacing="2" width="200"
+<br/>
-|-
-! scope="col" |
-Sector&nbsp;&nbsp;&nbsp;&nbsp;
-! scope="col" |
-Consumption in GWh
-! scope="col" |
-in&nbsp;%
-|-
-|
-Industry
-|
-,381.3
-|
-,8
-|-
-|
-Transport
-|
-,770.2
-|
-.3
-|-
-|
-Residential
-|
+<br/>
-,323.4
-|
+== Renewable Energy Policy<br/> ==
-.0
+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/>
+<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/>
-Non-energy use
+| '''<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/>
-|
+| '''Total [MW]'''<br/>
-,213.7
-|
-.9
 |-
-|
+| Solar PV<br/>
-TFC
+| 3,000<br/>
+| 10,575<br/>
-|
+| 13,575<br/>
-,688.6
-|
-|}
-=== Energy Demand&nbsp;&nbsp;<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>&nbsp; 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>
-== Electricity Grid<br/> ==
-According to the Wuppertal Institute for Climate,&nbsp;Environment and Energy, Algeria has an extensive AC&nbsp;network that spreads throughout the country with a total length of transmission network of about 18,000 km.<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> Within this context, Sonelgaz is the transmission grid operator with electricity making up about 71% of its business,<ref>Groupe Sonelgaz (2009), "Rapport d'Activite 2009 &amp;amp;amp;amp;amp;amp;amp;amp;amp;amp; comptes de gestion consolidés", pg. 26</ref> which is not only focused on the densely populated north but also makes 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>&nbsp;Algeria is connected with neighbouring grids&nbsp;of Tunisia and&nbsp;Morocco also by&nbsp;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>
-== 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.
-<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="height: 150px; width: 100%" border="1" cellpadding="1" cellspacing="1"
 |-
-! scope="col" |
+| Wind<br/>
-Company
+| 1,010<br/>
+| 4,000<br/>
-! scope="col" |
+| 5,010<br/>
-Activity
 |-
-|
+| <span data-scayt_word="csp" data-scaytid="47">CSP</span><br/>
-Sonelgaz
+| -<br/>
+| 2,000<br/>
-|
+| 2,000<br/>
-<font face="arial,helvetica,sans-serif" size="2">National electricity production, commercialisation and distribution of natural gas</font>
 |-
-|
+| <span data-scayt_word="cogeneration" data-scaytid="48">Cogeneration</span><br/>
-Algerian Energy Company (AEC)
+| 150<br/>
+| 250<br/>
-|
+| 400<br/>
-Electricity production, commercialisation, energy transport and distribution, desalination of sea water and telecommunications
 |-
-|
+| Biomass<br/>
-KAHRAKIB
+| 360<br/>
+| 640<br/>
-|
+| 1,000<br/>
-Studies on and realisation of high tension electricity infrastructure
 |-
-|
+| Geothermal<br/>
-KAHRIF
+| 5<br/>
+| 10<br/>
-|
+| 15<br/>
-Works on electrification
 |-
-|
+| Total<br/>
-KANAGHAZ
+| 4,525<br/>
+| 17,475<br/>
-|
+| 22,000<br/>
-Studies on and realisation of canalisation and gas transportation
 |}
+<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]]
+== Energy Efficiency Policy<br/> ==
-The electricity&nbsp;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)'''".
+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/>
-== Gas Pipelines<br/> ==
-Algeria can be considered to be one of the main exploiters and exporters of gas in the MENA-region. Especially Europe profits from Algeria's great amounts of gas (that consist mainly of conventional gas and to a limited extent of natural gas) being transported via gas pipelines.<ref>International Energy Agency (IEA) (2011), "World Energy Outlook 2011 - Are we entering a gold age of gas?", pg. 28</ref>&nbsp;
-The Algerian gas transport network consisted of 13,826 kilometres of pipelines at the end of 2011, which is 19% longer than in 2010.<ref>Commission de Régulation de l'Electricité et du Gaz (CREG), 2011, Rapport d'activité 2011, Algiers: pg. 17.</ref>
-One of the only two major pipeline connections that have been commissioned since 2009 is the MedGaz pipeline going from Algeria to Spain.<ref>International Energy Agency (IEA) (2011), "World Energy Outlook 2011 - Are we entering a golden age of gas?", pg. 66</ref>&nbsp;Another major project securing and easing Europe's constant gas supply by Algeria is planned for the year 2015 and stipulates a pipeline connecting Algeria and Italy (Gasdotto Algeria Sardegna Italia -&nbsp;GALSI).<ref>International Energy Agency (IEA) (2011), "World Energy Outlook - Are we entering a golden age of gas?", pg. 66-67</ref>
-== Access Rate<br/> ==
-The '''International Energy Agency (IEA)''' states that the average energy supply per individual (TPES/pop. =&nbsp;toe/capita) in 2008 was 1.08 toe, which was much less than the worlds average (1.83 toe).<ref>Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27</ref>&nbsp;Another statistic that seems to reveal a similar deviance is the consumption of electricity per individual (kWh/capita), which is about 957 kWh&nbsp;(compared to the worlds average of 2,782 kWh).<ref>International Energy Association (IEA) (2010), "Key World Energy Statistics 2010", pg. 51</ref>&nbsp;The presumption is that these low numbers are not due to the reasonable energy use of Algeria's population, but due to the insufficient accessibility of electricity. An indiciation to support this hypothetical statement is the number of households considered to be clients of Sonelgaz: 6,525,999.<ref>Wuppertal Institute of Climate, Environment and Energy (2010), "Algeria - A Future Supplier of Electricity from Renewable Energies for Europe?", pg. 27</ref>&nbsp;Considering the average african household size of 4.7 members,<ref>Baumann, H. (2007), "Changing household patterns create opportunities for construction, retail and finance", Last Updated: April, 2007, Accessed: September 20, 2011, URL: http://www.euromonitor.com/changing-household-patterns-create-opportunities-for-construction-retail-and-finance/article</ref> this number mounts up to 30,672195.3 mio people - as opposed to the total population of about 34.5 million people.&nbsp;Following this logic, the&nbsp;concrete, explicit access rate would be around&nbsp;89%.&nbsp;Obviously, this is nothing but a rough and approximate estimation due a lack of official numbers. Nevertheless, it offers a first impression on how to evaluate Algeria's access rate. However, it shall not lead to hasty conclusions, for this phenomenon can be explained by a number of potential factors, such as the fact that in 2009 34% of Algeria's population was considered to be part of the rural population, implying much more rudimentary living standards as compared to the urban population.<ref>The World Bank (2011), "Rural population (% of total population)", Last Updated: 2011, Accessed: September 21, 2011, URL: http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS</ref>&nbsp; The Algerian state and Sonelgaz are showing quite some effort to supply rural areas with urban-quality services. According to '''Renewable Energy &&nbsp;Energy Efficiency Partnership (REEEP)''' over 98% of the population have used the service provided by the extensive network.<ref>The renewable energy & energy efficiency partnership (REEEP), 2012, "Policy DB Details: Algeria (2012)", Accessed: 18th of June 2012, URL: http://www.reeep.org/index.php?id=9353&special=viewitem&cid=120</ref>&nbsp;Although the network has already undergone several exentensions recently, an extension of yet another 5% is planned for the upcoming years.<ref>Renewable Energy &amp;amp;amp;amp;amp; Energy Efficiency Partnership (REEEP), "Policy DB Details: Algeria (2010)", Last Update: - , Access: September 21, 2011, URL: http://www.reeep.org/index.php?id=9353&amp;amp;amp;amp;amp;special=viewitem&amp;amp;amp;amp;amp;cid=120</ref>
-Network access is generally controlled by CREG. Discriminatory access is granted to '''independent power producers (IPP's)'''.
-== Market Situation for Different Energy Technologies and Services<br/> ==
-Although&nbsp;state-run&nbsp;gas and electricity&nbsp;company Sonelgaz&nbsp;considers energy prices to be far too cheap,&nbsp;prices are set by the&nbsp;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>&nbsp;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&nbsp;exception of a few&nbsp;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>&nbsp;
-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&nbsp;of power generating capacity from renewable resources until 2030.<ref name="null">Ministère de l'Energie et des Mines (2011), "Renewable Energy and Energy Efficiency Progam", pg. 4</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).
-=== Solar Energy ===
-Algeria comes with 20 solar villages, of which the majority is in action and is contributing to the overall production of&nbsp;energy.<ref name="null">Ministère de l'Energie et des Mines, "Bilan général des réalisations", Last Update: - , Accessed: September 21, 2011, URL: http://www.mem-algeria.org/fr/enr/energie%20solaire/Bilan_generale.htm</ref>&nbsp;Solar energy is considered to be the most potential source of renewable energy, the most of which is being naturally collected in the Sahara region with 2,650 kWh/m<sup>2</sup>/year.<ref name="null">Ministry of Energy and Mines (2007), "Guidelines to Renewable Energies", pg. 13</ref>&nbsp; Nevertheless, solar energy makes up only a minimal amount of the total energy that is being produced in Algeria. The 35 TWh that energy production has reached by now is mainly based on the exploitation of natural gas.<ref name="null">Renewable Energy &amp;amp;amp;amp;amp;amp;amp;amp; Energy Efficiency Partnership (REEEP), "Policy DB Details: Algeria (2010), Last Update: - , Accessed: September 21, 2011, URL: http://www.reeep.org/index.php?id=9353&amp;amp;amp;amp;amp;amp;amp;amp;special=viewitem&amp;amp;amp;amp;amp;amp;amp;amp;cid=120</ref>&nbsp;According to Renewable Energy &&nbsp;Energy Efficiency Partnership (REEEP), the amount of produced solar energy is about&nbsp;6.57 kWh/m<sup>2</sup>/day.<ref>Renewable Energy &amp;amp;amp;amp;amp;amp;amp;amp; Energy Efficiency Partnership (REEEP), "Policy DB Details: Algeria (2010), Last Update: - , Accessed: September 21, 2011, URL: http://www.reeep.org/index.php?id=9353&amp;amp;amp;amp;amp;amp;amp;amp;special=viewitem&amp;amp;amp;amp;amp;amp;amp;amp;cid=120</ref>
-The renewable energy programme aims at the creation of a solar energy industry. On one hand the industrial integration of photovoltaic solar energy is supposed to be promoted to reach about 60% by 2013.<ref>Ministère d'Energie et des Mines (2011), "Renewable Energy and Energy Efficiency Program", pg. 18</ref> On the other hand, solar thermal energy is allegedly to experience an industrial integration of 50%&nbsp;by year 2020, starting with a series of studies concerning the manufacturing of the respective equipment between 2011 and 2013.<ref>Ministère d'Energie et des Mines (2011), "Renewable Energy and Energy Efficiency Program", pg. 19</ref>
-=== Wind Energy ===
-In past reports, the potential of energy gained by the exploitation of wind has been rated as very low.<ref>Renewable Energy &amp;amp;amp;amp;amp;amp;amp;amp;amp; Energy Efficiency Partnership, "Policy DB Details: Algeria (2010)", Last Update: - , Accessed: September 21, 2011, URL: http://www.reeep.org/index.php?id=9353&amp;amp;amp;amp;amp;amp;amp;amp;amp;special=viewitem&amp;amp;amp;amp;amp;amp;amp;amp;amp;cid=120</ref> The 2011 report however promotes a rather different attitude by the Ministry of Energy and Mines. The so far quite underestimated and neglected sector of&nbsp;wind energy is&nbsp;therein identified as a field of future study (by 2013), in order to soon be able to implement wind energy industry.<ref>Ministère de l'Energie et des Mines (2011), "Renewable Energy and Energy Efficiency Program", pg. 20-21</ref>
-=== Biomass ===
-Similar to wind energy, the potential of energy extracted from&nbsp;biomass is&nbsp;relatively low, according to the&nbsp;Algerian Ministry of Energy and Mines.<ref>Ministère de l'Energie et des Mines (2011), "Renewable Energy and Energy Efficiency Program", pg. 4</ref>&nbsp;Having said that, the Ministry does not neglect the chance of producing and using biomass energy. In fact, it plans to implement experimental projects to approach yet another source of&nbsp;renewable energy.<ref>Ministère de l'Energie et des Mines (2011), "Renewable Energy and Energy Efficiency Program", pg. 4</ref> Nevertheless, further information on this topic appear to be rather vague. Responsible for developing and implementing these research projects is the '''Center for Renewable Energy Development&nbsp;(CDER)'''.<br/>The REEEP&nbsp;estimates the potential of Biomass to be about 37,000 ktoe that can be gained by forest reserves.<ref name="null">Renewable Energy &amp;amp;amp;amp;amp;amp;amp; Energy Efficiency Partnership (REEEP), "Policy DB Details: Algeria (2010)", Last Update: - , Accessed: September 23, 2011, URL: http://www.reeep.org/index.php?id=9353&amp;amp;amp;amp;amp;amp;amp;special=viewitem&amp;amp;amp;amp;amp;amp;amp;cid=120</ref>
-=== Biogas ===
-Biogas, considered to be a sub-category of biomass, is just like the biomass itself in quite limited use in&nbsp;Algeria. Although no official figures can confirm an extended use of biogas, REEEP&nbsp;asserts that in 2010, Algeria had "roughly 1,1330 ktoe of agricultural and municipal residues"&nbsp;available.<ref>Renewable Energy &amp;amp;amp;amp;amp; Energy Efficiency Partnership (REEEP), "Policy DB Details: Algeria (2010)", Last Update: - , Accessed: September 23, 2011, URL: http://www.reeep.org/index.php?id=9353&amp;amp;amp;amp;amp;special=viewitem&amp;amp;amp;amp;amp;cid=120</ref>
-=== Hydro Power ===
-Hydro Power represents yet another source of renewable energy that is considered to have lower potential. Although flows are estimated to be about 65 billion m<sup>3</sup>, limited precipitation and high evaporation constrict extensive usage of the ressource of water.<ref>Ministère de l'Energie et des Mines, "Potential", Last Updated: - , Accessed: September 23, 2011, URL: http://www.mem-algeria.org/english/index.php?page=potentiels</ref>&nbsp;Recent evaluations showed that only 25 billion m<sup>3</sup> can be used effectively.<ref>Ministère de l'Energie et des Mines, "Potential", Last Updated: - , Accessed: September 23, 2011, URL: http://www.mem-algeria.org/english/index.php?page=potentiels</ref> Despite these facts, Algeria still comes with more than 100 dams and some dozens more that are already projected.<ref>Ministère de l'Energie et des Mines, "Potential", Last Updated: - , Accessed: September 23, 2011, URL: http://www.mem-algeria.org/english/index.php?page=potentiels</ref>
-=== Other Renewable Sources<br/> ===
-Another potential source of renewable energy is given by geothermal energy - energy generated and stored in the earth. Due to multiple hot springs located in Algeria that can be used for low-temperature geothermal applications, Algeria's energy potential (in the context of geothermal activity)&nbsp;is in the range of 700 MW.<ref>Wuppertal Institut für Klima, Umwelt, Energie GmbH; Regional Center for Renewable Energy and Energy Efficiency (RCREEE) (2010), "Provision of Technical Support/Services for an Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for Renewable Energy and Energy Efficiency - Desk Study Algeria", pg. 35</ref>
-== 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&nbsp;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>
-== Policy Framework, Laws and Regulations<br/> ==
-=== General Energy Policy, Energy Strategy<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 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/>
-=== Important Laws and Regulations<br/> ===
+= Key Actors in the Energy Sector<br/> =
-Due to the increasing importance of renewable energies, Algeria has created a legal framework concerning the promotion and exploitation of renewable energy. The foundation of this legal framework is given by the following legal documents:<ref>Minstère de l'Energie et des Mines (2011), "Programm for Renewable Energy and Energy Efficiency", pg. 28</ref>
+== Governmental Bodies and Agencies<br/> ==
-*'''Law no. 99-09 '''concerning energy cuts (July 28th, 1999)
+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/>
-*'''Law no. 02-01 '''concerning electricity and distribution of gas (February 5th, 2002)&nbsp;
-*'''Law no. 04-09 '''concerning the promotion and exploitation of renewable energies in the context of sustainable development (August 14th, 2004)
-*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. 04-92''' concerning the application of a subsidisation of renewable energy based electricity production
+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/>
+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]]
-=== Specific Strategies (Biomass, Renewable Energies, Rural Electrification, Energy Access Strategy etc.)<br/> ===
+== Utilities<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.
+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/>
-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>
+[[Algeria Energy Situation#toc|►Go to Top]]
+== Others<br/> ==
+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/>
-== Institutional Setup in the Energy Sector<br/> ==
+= Energy Cooperation<br/> =
-=== Governmental Institutions<br/> ===
+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/>
-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>
+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/>
-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.
+<br/>
-A very particular notice should be given to the&nbsp;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.&nbsp;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>&nbsp;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>&nbsp;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>
+== 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/>
-=== State-owned Enterprises<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>
-The Algerian energy sector is characterized by a few company networks with national enterprises numerously scattered&nbsp;over the respective branches of the energy sector.<br/>The hydrocarbon&nbsp;and petroleum&nbsp;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&nbsp;SPA&nbsp;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>&nbsp;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&nbsp;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 troughout Algeria. Being a part of the SONELGAZ&nbsp;group, the Société Algérienne de Production de l'Electricité (SPE)&nbsp;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>&nbsp;In total, the SONELGAZ&nbsp;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>
-=== 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.&nbsp;Italy, Spain, and Belgium), the European Investement Bank (EIB) and the European Commission (EC)&nbsp;have contributed decisive support in the recent decades.<ref>European Union (2007), "European Neighbourhood and Partnership Instrument - Algeria", pg. 13-17</ref>
-= Existing Projects<br/> =
-'''Renewable energy development programme ([[:file:Programme ENR et efficacite energetique DEU.pdf|German version]]):&nbsp;'''
-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>&nbsp;
-#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
-'''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.
+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/> =
-*Official website of the Algerian&nbsp;MEM:&nbsp;[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]
-*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/]
+[[Algeria Energy Situation#toc|►Go to Top]]
 = References<br/> =
-<references />
+<references /><br/><br/>[[Algeria Energy Situation#toc|►Go to Top]]
-[[Category:Algeria]]

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General Information

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