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RENEWABLE ENERGIES IN ALGERIA: CURRENT SITUATION AND

PERSPECTIVES

Conference Paper · September 2014

DOI: 10.13140/2.1.1600.4808

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 29th European Photovoltaic Solar Energy Conference and Exhibition

RENEWABLE ENERGIES IN ALGERIA: CURRENT SITUATION AND PERSPECTIVES

Kamel Abdeladim, Salim Bouchakour, Amar Hadj Arab, Saïd Ould Amrouche, Farida Cherfa, Bilel Taghezouit, Karim
Kerkouche
Centre de Développement des Energies Renouvelables, CDER,
BP 62 Route de l'Observatoire Bouzaréah, 16340 Algiers, Algeria
Tel.: +213 21 901 446; Fax: +213 21 901 560.
E-mail: k.abdeladim@cder.dz

ABSTRACT: In Algeria the energy consumption is based almost exclusively on fossil energy sources, hydrocarbons and
especially natural gas. In recent years, Algerian government has shown an ambition to start a new renewable energy (RE)
development plan.
In this paper, we will present the national programme for the period 2011–2030, which was developed in order to
promote concrete actions in the fields of energy efficiency and RE. In fact, it is expected that about 40% of electricity
produced for domestic consumption will be from renewable energy sources by 2030.This strategic choice is motivated by
the availability of a huge solar potential.
The US$ 120 billion programme, consists of installing up to 22,000MW of power generating capacity from renewable
sources between 2011 and 2030, of which 12,000MW will be intended to meet the domestic electricity demand and
10,000MW destined for export.
Keywords: Photovoltaic; Solar thermal; Wind; Concentrating Solar Power; Legal framework

1 INTRODUCTION
Algeria has launched in 2011 an ambitious transition
to alternative and clean energy with the adoption of the
program for the development of renewable energy which
is spread over the next two decades.
Beyond environmental concerns or to diversify the
energy mix and reduce the share of fossil fuels, Algeria
also tends to lengthen a few more years its hydrocarbon
reserves and also exploit its huge solar and wind potential
in order to help answer domestic needs and export
electricity part of this energy to European countries.
This commitment was explicitly displayed by the
President of the Republic Abdelaziz Bouteflika, who
emphasizes the importance given to the diversification of
energy supply of the country through the implementation
of a national renewable energy. He said "If we must, of
course, continue the expansion and renewal of our oil
reserves, it also belongs to diversify sources of energy
supply of the country, the implementation of the national
program of renewable energy".
The country's current energy needs are met by
hydrocarbons, particularly natural gas, which remains the
main source of energy used, while the use of other
sources do when the gas cannot be utilized.
The orientation of the energy model of Algeria was
reinforced by the fact that natural gas marks as the
cheapest energy to consumers. In the long term, the
conversion of existing energy model will issue the supply
/ demand balance for this source of energy that is
constantly being sought by domestic demand and
the international market. As an illustration, the level
of internal needs of Algeria’s natural gas is expected to
reach 45 billion m3 in 2020 before settling at 55 billion
ten years later. This dramatic change in local demand will
be accompanied by huge export volumes and whose
income will be required to turn the national economy.
Electricity consumption should, be on the same
period from 75 to 80 TWh (TerraWatts hour) in 2020 and
between 130 and 150 TWh in 2030.
Adopted in 2011 by the Council of Ministers, the
National Renewable Energy Development Programme
(NRP) [1], plans to produce 22,000 MW of electricity
from renewable sources, including solar and wind, for the
domestic market, with more than 10,000 MW export for
the next 20 years. This corresponds to 40% of global
electricity production by 2030 and double the current
capacity of the national park of electricity.
Investment of about $120 billion, half from the public
sector, is needed for the same term in order to achieve
this goal. Private and foreign investors should also be
involved in the implementation of this program.
The projects for the domestic production of
electricity from renewable energy sources will be carried
out in three phases: The first phase, between 2011 and
2013, will be devoted to the achievement of pilot projects
to test the different available technologies, The second
phase (2014 – 2015) will mark the beginning of the
deployment of the program, The last phase, between
2016 and 2020, will be devoted to the large-scale
deployment of the program.
In addition, the new energy policy will be supported
by the development of a local industry subcontracting,
and to help create not less than 100,000 jobs.
In total, 67 projects from solar photovoltaic, solar
thermal and wind hybridized with natural gas or diesel
fuel distributed under this program, over twenty
provinces of Southern Highlands and even North of the
country and are and called the challenge to switch
Algeria in the era of clean energy. Total installed
capacity of these projects will be 2357 MW by 2020.
Finally, Algeria embarked on an extensive process of
international cooperation in the same field and whose
membership in the Desertec initiative is the most
important example (investment of 400 billion Euros). As
a matter of fact, an agreement was signed in Brussels
between the German company and Sonelgaz Desertec
Initiative (Dii) [2]. Strengthening the exchange of
technical expertise, considering ways and means to
access foreign markets and promoting common
development of renewable energies in Algeria and abroad
are at the heart of this strategic partnership sealed with.
Desertec aims to create the next 40 years a vast network
of wind and solar in North Africa and the Middle East.

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 29th European Photovoltaic Solar Energy Conference and Exhibition

2 ALGERIAN POTENTIAL North and Biskra in the South

2.1 Solar Energy Potential
According to its geographical location, Algeria
holds one of the highest solar potential. Indeed,
following an assessment by the satellites, the
German Aerospace Center (DLR) concluded that
Algeria has the largest solar potential in the
Mediterranean basin: 169,440 TWh / year.
Sunshine duration on almost all the country over
2000 hours per year and can reach 3900 hours in
the Highlands and the Sahara. The daily energy
obtained on a horizontal surface is about 5 kWh on
most of the national territory, about 1700 kWh / m²
/ year for the North and 2263 KWh / m² / year for
the South, [3-12].
The climatic conditions in Algeria are favorable for the
development of solar energy due to the abundant
sunshine throughout the year, especially in the Sahara
region, (Fig. 1) Figure 2: Wind chart of Algeria
2.3 Hydroenergy
The global flows falling over the Algerian territory
are important and estimated to 65 billion m3 but of little
benefit to the country: Restricted rainfall days,
concentration on limited areas, high levels of evaporation
and quick evacuation to the sea are barriers to the uptake
of hydropower..
Schematically, the surface resources decrease from the
North to the South. Currently the evaluation of useful and
renewable energies is about 25 billion cubic meters, of
which the 2/3 approximately is for the surface resources.
So far, 103 dam sites have been recorded, primarily in the
North. More than 50 dams are currently operational and
the combined capacity of the largest 13 dams is roughly
269 MW.

2.4 Geothermal energy potential

Figure 1: Daily global solar irradiance received on
normal plane in July
2.2 Wind Energy Potential
The resources in wind energy in Algeria vary
widely from one place to another fig. 2, [13-15].
This is mainly due to a diversified topography and
climate. In fact, our vast country is divided in two
large distinct geographical zones.
The Northern Mediterranean area is distinguished
by a coastline of1.200km and mountainous terrain
represented by the two chains, the Tellian Atlas and
the Saharan Atlas. Between these are plains and
highlands with a continental climate. The South is
characterized by a Saharan climate. The map below
shows that the South is marked by higher wind
velocities than the North; this is particularly true in
the South-West where velocities are more than
4m/s and exceed 6m/s in the Adrar region.
Regarding the North, it appears that the average
velocity is not very high. However, we notice micro
climates in the coastal areas of Oran, Béjaïa and
Annaba, on the highlands of Tiaret and Kheiter, as
well as in the region bounded by Béjaïa in the
The compilation of the geological, geochemical and
geophysical data contributed to layout a preliminary
geothermal chart. More than two hundred (200) hot
springs have been recorded in the Northern part of the
country [12]. Approximately a third of these hot spring
(33%) show temperatures exceeding 45° C. High
temperature springs exist in Biskra region reaching 118°
C. These natural outflows which are generally leakages
from existing reservoirs have a flow of more than 2m3/s
of hot water. This represents only a very small part of the
production possibilities of the reservoirs.
Deeper in the South, the continental rock formation
constitutes a great geothermal reservoir extending over
several thousand km2. This reservoir commonly called
the ‘‘albian platform’’ is exploited through drilling, at a
flow rate of over 4m3/s. This water has an average
temperature of 57 °C (Fig. 3) [16].

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 29th European Photovoltaic Solar Energy Conference and Exhibition
Figure 3: Main geothermal areas
2.5 Biomass potential
The biomass potentially offers great promise, with 37
Million toe (tons oil equivalent), coming from forests,
with a rate of recovery around 10%. Moreover 5 million
tons of urban and agricultural waste (365 kg of urban
waste per Algerian). This potential represents a deposit
approximately of 1.33 million toe / year; however this
potential is not enhanced and consumed yet.
In addition, the harnessing of organic wastes, mainly
animal wastes, for biogas production could be considered
as an economic solution: it is decentralized and
ecological since it delivers energy autonomy, and allows
sustainable development of rural areas.
3 CURRENT RENEWABLE ENERGIES
SITUATION
The electrification of rural villages and electric
power utilities are both axes pursued by the
government. Thus, nearly 1000 households in 20 villages
in four south districts enjoy access to electricity
since2000, through photovoltaic kits which will add 16
more villages in the same area (900 households) and
feeding more than 100 telecommunications sites.
Similarly, a central hybrid solar / diesel by 13 KWp
installed in Illizi allows 300 households or 2000
people to benefit from access to electricity.
Projects led by the High Commissioner for Development
of Steppe (HCDS), a public institution whose
mission is the development of stepiques and pastoral
areas, have also allowed the electrification of more
than 3000 homes with a capacity of 550 KWp, the
provision of 160 solar pumps for a power of 240 KWp
and 80 wind pumps equivalent to a power of 120 KWp.
Currently, the Hassi R'Mel plant is the first and the only
concentrating solar power (CSP) installed in Algeria, the
cost of the project is 350 million Euros. The plant is a
hybrid solar-gas, a power of 150 MW with 25 MW solar.
Concentration solar collector is provided by parabolic
trough.
In the North, citing a 10 KWp photovoltaic plant that
is connected to the national grid, this project is
part of the Algerian-Spanish cooperation, installed by the
Centre for the Development of Renewable Energies
(CDER). Another PV system connected to the grid was
installed with a capacity of 12 KWp at the Unit for the
Development of Solar Equipment. (UDES), also a Naftal
4121
(service station) powered by solar energy with a total
installed capacity of 6.6 kWp, pilot plants for the benefit
of the National Gendarmerie and the photovoltaic power
supply of traffic monitoring stations.
4 PERSPECTIVES –ENERGY EFFICIENCY
PROGRAMME
4.1 Perspectives
4.1.1 Photovoltaic solar energy
The solar photovoltaic will have a big portion slice in
the programme with 27 projects totaling 638MW of total
capacity.
The government plans launching several solar
photovoltaic projects with a total capacity of 800MWp by
2020 [1]. Other projects with an annual capacity of 200
MWp are to be achieved over the 2021–2030 period, PV
industrial integration is expected to reach 60% over the
period 2011–2013. This ambitious target will be achieved
through the construction by “Rouiba-Eclairage”, a
subsidiary of the Sonelgaz Group, of a photovoltaic
module manufacturing plant with a capacity equivalent to
120MWp/per year, whose startup is scheduled for late
2013. The period will also be marked by the
implementation of measures to strengthen engineering
and business development support to the photovoltaic
industry through a joint-venture that will bring together
various stakeholders (Rouiba-Eclairage, Sonelgaz) in
partnership with research centres and units (CDER), the
Electricity and Gas Research and Development Centre
(CREDEG) and the Silicon Technology Development
Unit(UDTS)). The objective of the Algerian industry for
the 2014–2020 period is to achieve ac apacity integration
level of 80% by the construction of a silicon
manufacturing plant. Moreover, a national subcontracting
network is to be established for the manufacturing of
inverters, batteries, transformers, cables and other
equipments used in the construction of a PV power plant.
There are also plans to develop a center for the
certification of products used in the manufacturing of
equipment for RE installations.
Over the period 2021–2030, the RE programe aims to
reach a rate of integration upper to 80%. Therefore, the
production capacity of the PV modules should be
expanded to reach 200MWp/per year. This period would
be marked by the development of a national sub-
contracting network for the manufacturing of equipment
necessary for the construction of a PV power plant and
by the total control of the activities of engineering,
procurement and construction of power plants and
brackish water desalination units. There are also plans for
the same period to export not only the electricity
produced from RE but also the know-how and equipment
used in the generation of electricity from these sources.
4.1.2 Solar thermal energy
Solar thermal energy is present in the National
Renewable Energy program in the fields of solar
concentration and efficiency [17].
Solar concentration alone represents two thirds (2/3) of
the power to be installed. In 2030, solar power
concentration, the total capacity is planned to install
7,200 MW, or about 32%compared to the national
electricity production. On the other hand, for photovoltaic
and wind power accumulates the expected is 4800 MW,
which corresponds to about 8%compared to the national
 29th European Photovoltaic Solar Energy Conference and Exhibition
electricity production.
Four (4) solar thermal power plants with a total
capacity of about 1 200 MW are to be constructed over
the period 2016-2020. The 2021-2030 programme
provides for the installation of an annual capacity of
500 MW until 2023, then 600 MW per year until 2030.
4.1.3 Wind energy
For the period 2011-2013, the first wind farm with a
power of 10 MW in Adrar is in service since july 2014.
Two wind farms with a capacity of 20 MW each are to be
developed. Studies will be led to detect suitable sites to
realize the other projects during the period 2016-2030 for
a power of about 1 700 MW.
It should be noted that wind energy is far behind
compared to other renewable energy sources due mainly
to [18]:
• Lack of infrastructure dedicated to the development
and testing of wind energy;
• Little importance given the wind thematic;
• No control technologies and the lack of knowledge of
socio-economic aspects related to the wind field (by
policy makers and the general public);
• Lack of coordination between different teams working
on the same field wind. Construction and programming
of certain wind projects without the involvement of
researchers in the field.
In fig. 4 is shown the REn contribution for power
generation for the period programme.
Figure 4: Contribution of REn for power generation for
2011-2030 period.
4.2 Energy Efficiency Programme
The energy efficiency program is governed by
Algeria’s commitment to promote a more responsible use
of energy and to investigate all the ways to protect the
resources and systematize (explore all possible avenues
for conserving resources and systematizing) efficient and
optimal consumption [1,19].
Energy efficiency aims to produce the same goods
and services by using least possible energy (the less
possible energy). The program provides for measures that
favor forms of energy most suitable for different uses and
require behavioral change and improved equipment.
The energy efficiency program is as follows:
• Thermal insulation of buildings
In Algeria, the construction sector is the most energy
intensive sector. It uses more than 42% of overall energy
consumption. Proposed measures to achieve energy
efficiency in this sector include the introduction of
thermal insulation of buildings, which will reduce energy
consumption related to home heating and cooling by
about 40%.
• Developing solar water heating
The penetration of solar water heaters in Algeria remains
4122
undeveloped but the potential is significant. There are
plans to develop the solar water heating system to
gradually replace the conventional system. The plans are
supported by the National Fund for Energy Efficiency
(NFEE).
• Spreading the use of low energy consumption lamps
The objective of the action strategy is to gradually
prohibit the marketing of incandescent lamps
(conventional lamps commonly used by households) on
the domestic market to reach a total ban by 2020. In
parallel, there are plans to put several million low-energy
bulbs on the market. Furthermore, local production of
low consumption lamps will be encouraged in particular
through partnerships between local and foreign
producers.
• Introducing energy performance in street lighting
Street lighting is the most energy consuming sector in the
municipalities. Municipal officers are often poorly
informed about the opportunities for improving and even
reducing energy consumption in public lighting. The
program for energy efficiency in the municipalities
consists of replacing all mercury (energy consuming)
lamps by sodium (low energy) lamps.
• Promoting energy efficiency in the industrial sector
The industrial sector accounts for about one fourth of the
country’s overall energy consumption. For more energy
efficiency, there are plans for: Co-financing energy audits
and feasibility studies that will enable companies to
precisely define technical and economical solutions best
suited for reducing energy consumption; Co-financing
additional costs linked to the introduction of energy
efficiency into technically and economically viable
projects.
• Promoting Liquefied Petroleum Gas fuel
There are plans to increase by 20% the market share of
Liquefied Petroleum Gas Fuel (LPG / F) in the
automobile fleet by 2020.This will be accompanied by
the provision of direct financial assistance to individuals
wishing to convert their vehicles to LPG / F.
• Promoting Natural Gas fuel
As early as the beginning of the 90s, a research
program was initiated to convert vehicles using diesel
fuel to natural gas fuel. Stations were developed by
Sonelgaz for the distribution of this fuel to an
experimental fleet. By 2013, it is planned to put on in NG
/ Fuel several tens of bus in the city of Algiers and to
extend the operation to the other big cities of Algeria
before 2020.
• Introduction of key technologies for solar air
conditioning
Solar energy for air conditioning is a technology that
should be promoted particularly in the South of the
country, as far as the needs for cooling mostly coincide
with the availability of solar radiation (conversion of
sunrays into energy). Moreover, solar collectors may also
be used for hot water production and room heating during
the cold season. The overall performance of a solar
cooling system is therefore of a great interest. By 2013,
studies will be launched to acquire and harness solar
cooling technologies and choose the system best suited to
the Algerian context. Two pilot projects for air cooling
using absorption and adsorption chillers will be launched
for the cooling of buildings in the south of the country.
More actions such will be considered such as:
• Promoting co-generation;
• Conversing simple cycle power plants to combined
cycle power plants, wherever possible;
 29th European Photovoltaic Solar Energy Conference and Exhibition
• Desalinating brackish water using renewable energy.
5 LEGAL FRAMEWORK & FEED-IN TARIFFS
An explicit legal support of RE came into force during
past years, texts were adopted.
A legislative purview concerning the electricity
production from renewable sources was released it
concerns [21-25]. .
A feed-in tariff already exists which encourages public
or private investors to implement integrated solar
combined cycle plants in Algeria. Unfortunately this
feed-in tariff concerns only high size installation. At this
moment, efforts are made in order to generalize this
initiative for smaller installations.
National policy for the promotion and development of
renewable energies (RE)is governed by laws and
regulations. The main texts governing the renewable
energies are:
• The law on energy conservation,
• The law on the promotion of renewable energy within
a framework of sustainable development,
• The law on power and public distribution of gas with
its accompanying decree on costs of diversification.
This policy relies on a whole network of organisations
and business companies each one dealing with the
development of renewable energies.
Three organisations within the sector of higher education
and scientific research have been active since 1998:
- Centre for the development of renewable energies.
(CDER),
- Unit for the development of solar equipment.
(UDES),
- Unit for the development of silicium technology
(UDTS).
Within the energy sector, the activity relating to the
promotion of renewable energies is handled by the
Ministry of Energy and Mines and the Agency for the
promotion of the rationalisation of the use of energy
(APRUE) set up in 1987 and which has a department
dedicated to this activity. Moreover, the centre for
Research and Development of power and gas
(CREDEG), a subsidiary of Sonelgaz Group, deals with
the construction and maintenance of solar facilities
constructed within the framework of the national
programme of rural electrification.
Some texts have been adopted to frame the field of
renewable energies, essentially:
The law n° 99-09 of July 28th 1999 on energy control
This law adopted in 1999 frames national policy in the
field of controlling energy and defines the means of
achieving it.
To this end, the promotion of renewable energies is
registered as one of the instruments for controlling
energy by savings it may achieve in conventional
energies.
Article 33 of this law stipulates that tax advantages in
terms of customs duties may be granted for projects
promoting renewable energies.
Within the framework of this law, a national fund for
control of energy (FNME) has been created. It finances
projects for conserving energy. Actions dealing with
renewable energies are to be financed within this
framework under the National Plan of control of energy
(PNME) 2006-2010. These are operations dealing with
the residential and tertiary sectors.
4123
Regarding tertiary industries, the plan is to install 400
solar water heaters for the production of. For the
residential sector, the plan involves 20 programmes for
installing solar equipment for hot water for hygiene and
for heating. The entire programme would save 6 GW/H
for an investment of 90 million dinars.
The law n° 02-01 of February 5th 2002 relating to
power and public distribution of gas by pipeline
The law on power and public distribution of gas that
liberalizes this sector makes provisions for promoting
power generation from renewable energies and their
integration into this network.
Within this framework, the decree on costs of
diversification has been recently promulgated. It provides
for granting preferential rates for the power generated
from renewable energies. The connection costs of related
facilities will be borne by the company that exploits the
transport and/or distribution network. The granted bonus
may be up to 300% of the normal rate.
The decree on the costs of diversification promulgated
within the framework of this law provides that for power
generated from facilities using thermal solar energy in a
solar-gas hybrid system, bonuses will amount to200% of
the price of a kWh of power produced by the market
operator, this price being defined in the same law, on
condition that the minimum contribution of solar energy
represents 25% of primary energies as a whole.
Regarding contribution of solar energy below 25% the
said bonus is granted under the following conditions:
• For a solar contribution of 20 to25%: the bonus is
180%,
• For a solar contribution of 15 to20%: the bonus is
160%,
• For a solar contribution of 10 to15%: the bonus is
140%,
• For a solar contribution of 05 to10%: the bonus is
100%,
• For a solar contribution of 0 to5%: the bonus is nil.
The law n°04-09 of August 2004 relating to the
promotion of renewable energy within a framework of
sustainable development
This law provides for a national programme for
promoting renewable energies. It also provides initiatives
or developing renewable energies and for setting up a
monitoring body of renewable energies charged with
promoting and developing renewable energies.
Feed-In Tariff (FIT) schemes for photovoltaic and wind
energy installations were released recently [25]. They
were published in the official journal for ground-mounted
solar parks of more than 1 MW of capacity.
There will be two different FiT rates offers– one for
plants of between 1 and 5MW, another for over 5MW.
The FiTs will be available under 20-year power
purchase agreements, although different rates will be paid
for the final 15 years of the agreement. A limit has been
set on the number of generating hours eligible for FiT
payments.
For plants of 1-5MW, the FiT has been set at reference
rate of US$0.20/kWh for up to 1,500-1,574kWh per year
for the first five years. Over the following 15 years,
payments will vary depending on plant outputs, with
those generating above the reference quota receiving less
and those generating less receiving higher rates.
For plants over 5MW, a similar system will apply: a
reference rate of US$0.16/kWh will be paid to plants
generating 1,500-1,574kWh per year for the first five
 29th European Photovoltaic Solar Energy Conference and Exhibition
years; thereafter that rate will fall or increase for plants
producing respectively more or less than the reference
output [26].
6 CONCLUSION
Algeria holds a huge solar energy potential to be
exploited for the establishment of a clean and productive
economy. This will allow, for sure, having investments
less costly and reducing the harmful effects of
greenhouse gas emissions on the environment. The use of
clean energy is the way the "most effective" fight against
global warming phenomenon in accordance with the
Kyoto Protocol and Durban Platform on Climate Change.
Algeria can become a model for the use of clean energy
through the use of solar energy available to it. But we
need to have a political plan and a good strategy in this
direction.
However, the ambitious program adopted back in
February 2011 by the Algerian government to produce
22,000 MW of electricity from renewable in order to
diversify energy sources, including solar and wind, for
the domestic market, with more than 10,000 MW
additional export for the next 20 years still one of the
most important decision ever taken before for the
promotion of the RE and preparing Algeria of tomorrow.
It is important to note that such a strategic programme
can be achieved only if all the actors in different sector
work closely. Also, we must insist on the need to train the
trainers. The establishment of a strong partnership
institutional (universities and university centers, technical
faculties, schools and training institutes, centers and
research units, university laboratories, training
organizations in the industrial sector, small and medium
enterprises, offices study in various disciplines and
specialties, ...) is equally important.
Finally, companies with experience in the field of RE
from foreign countries must be involved in the project in
order to achieve the programme. Algeria embarked on an
extensive process of international cooperation in the same
field and whose membership in the Desertec initiative is
the most important example (investment of 400 billion
Euros). As a matter of fact, an agreement was signed in
Brussels between the German company and Sonelgaz
Desertec Initiative (Dii) [27]. Strengthening the exchange
of technical expertise, considering ways and means to
access foreign markets and promoting common
development of renewable energies in Algeria and abroad
are at the heart of this strategic partnership sealed with.
Desertec aims to create the next 40 years a vast network
of wind and solar in North Africa and the Middle East.
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