Algeria | cleanenergyy

About Algeria

Algeria is the located in Northern Africa and has a total land area of 2.38million km². It is the second largest country in Africa and is richly endowed with the natural resources of oil and gas. In fact, the country is heavily reliant on natural gas as the major energy generation source.

A natural gas facility in Algeria

Algeria plays a key role in world energy markets as a leading producer and exporter of natural gas and liquefied natural gas. Algeria’s energy mix in 2010 was almost exclusively based on fossil fuels, especially natural gas (93%).

The government has made it clear that oil and gas will remain the mainstay of Algeria’s energy production in the medium term. This is not surprisingly given that the hydrocarbon export sector contributed 97% to the country’s GDP in 2011.

The government has recently announced plans to invest another US$60billion in the state hydrocarbons sector in 2011-2015, and to “redouble” the country’s exploration effort from the end of June 2011

Current Energy Policies

In January 2013, the Algerian parliament approved changes to the hydrocarbons law, with the aim of creating a more liberal operating environment.

What this change entails: Companies will now face taxes on profits, rather than revenue, and the government has said it will share some of the financial risk of investing in more difficult assets, such as shale or offshore fields.

The aim of this policy change was to encourage new entrants to enter the hydrocarbons market, especially in light of the dip in confidence in the sector, following a terrorist attack at a natural gas facility

Terrorist attack at a major BP natural gas plant in Amena, Algeria, in January 2013

Renewable Energy Potential and Plans

The country has enormous renewable energy potential, mainly Solar, which the government is attempting to harness by launching an ambitious Renewable Energy and Energy Efficiency Program (2011).

Around 60 solar photovoltaic plants, concentrating solar power plants, wind farms as well as hybrid power plants are to be constructed within the next ten years. Algeria has also joined the Desertec Industrial Initiative, which aims to use Sahara solar and wind power to supply 15 per cent of Europe's electricity needs by 2050.

Sahara Desert

Desertec Industrial Initiative

Purpose of conference:

to investigate opportunities for appropriate solutions to climate change and evaluate how the two countries can work together to minimise greenhouse gas emissions.
This is in furtherance of the Algerian government’s Renewable Energy and Energy Efficiency Program.

Background of cooperation between UK and Algeria: The UK and Algerian Governments signed an Energy Roadmap MoU in 2010 aimed at enhancing cooperation (on institutional cooperation, renewables and low carbon technology, energy efficiency, health and safety and energy access).

Renewable Energy and Energy Efficiency Program

Solar

Potential: On account of its geographical location, Algeria holds one of the highest solar
potentials in the world which is estimated at 13.9 TWh per year.

The country receives annual sunshine exposure equivalent to 2,500 KWh/m2. Daily solar
energy potential varies from 4.66 kWh/m2 in the north to 7.26 kWh/m2 in the south.
Plans:

• Pilot projects for the construction of two solar power plants with storage of a total
capacity of about 150 MW each, will be launched during the 2011-2013 period. These will
be in addition to the hybrid power plant project of Hassi R’Mel with a total power capacity
of 150 MW, including 25 MW in solar. Four solar thermal power plants with a total
capacity of about 1,200 MW are to be constructed over the period of 2016 to 2020.

• The Hassi R'Mel integrated solar combined cycle power station is one of world’s first
hybrid power stations. The plant combines a 25 MW parabolic trough concentrating solar
power array, covering an area of over 180,000 m2, in conjunction with a
130 MW combined cycle gas turbine plant, so cutting carbon emissions compared to a
traditional power station. The gas turbine and steam cycle are fired by natural gas, with
the steam turbine receiving additional solar-generated steam during the day. The plant
began electricity production in June 2011.

Algeria’s solar radiation map

Prospective first wind farm to be built in Algeria - the draft of the first wind farm planned in southern Algeria, Adrar, was awarded in Dec 2010 to French consortium CEGELEC.

Progress

Africa and the Middle East Solar Radiation Map (region)

Wind

Potential: Algeria has promising wind energy potential of about 35 TWh/year. Almost half of the country experience significant wind speed.

Plans:

The country’s first wind farm is being built at Adrar with installed capacity of 10MW with substantial funding from state-utlity Sonelgaz. Two more wind farms, each of 20 MW, are to be developed during 2014- 2013.
Studies will be led to detect suitable sites to realize the other projects during the period 2016-2030 for a power of about 1700 MW.

Biomass Energy

Potential: Algeria has good biomass energy potential in the form of solid wastes, crop wastes and forestry residues. Solid waste is the best source of biomass potential in the country. According to the National Cadastre for Generation of Solid Waste in Algeria, annual generation of municipal wastes is more than 10 million tons. Solid wastes are usually disposed in open dumps or burnt wantonly.

Plans: Experimental projects will be undertaken in biomass – Algeria has plans to install some experimental size units to test the various technologies in renewable energies such as biomass, geothermal energy and desalination of brackish water.

Despite being a hydrocarbon-rich nation, Algeria is making concerted efforts to harness its renewable energy potential. Algeria’s renewable energy program is one of the most progressive in the MENA (Middle East and North African) region and the government is making all-out efforts to secure investments and reliable technology partners for ongoing and upcoming projects. It is expected that the country will emerge as a major player in international renewable energy arena in the coming years.

Caution (Challenges)

Further, investments in renewable energy may be compromised by unrest prevalent in certain regions of Algeria.

The January 2013 terrorist attack on a BP natural gas facility at In Amenas shows how such unrest can considerably damage foreign investor confidence. It has now become a challenge to attract new firms into Algerian’s hydrocarbon industry.

Algeria’s Energy Minister Youcef Yousfi