17 th UPDEA Congress, 28-31 May 2012 - Tunisia

1. Development Programme for RenewableEnergies and AssociatedInstitutional Aspects in Algeria M. Amar Abdoun, Engineer – SONELGAZ - ALGERIE M. Abdelkader Chabane, Head of Studies – SONELGAZ - ALGERIE 17th UPDEA Congress, 28-31 May 2012 - Tunisia

2. Outline • The development of REs in Algeria: Context and Stakes • Assets/opportunities for Algeria to develop REs • RE projects (completed and underway) • National Renewable Energy Programme • National energy policy • RE development strategy • Implementation of the national renewable energy programme • Legal and institutional aspects and incentives • Conclusion

3. Development of REs in Algeria (Context) • Depletion of primary resources and concern over their preservation; • Concerns over long-term secure supply of energy; • Environmental protection; • Need to diversify power generation sources; • Considerable progress have been made in the field of RE technologies making them competitive; • Abundant renewable energy resource, especially solar

4. Development of REs in Algeria(Stakes and challenges) • Beginnings of a new model energy consumption pattern (based on REs and energy saving); • Enforcement of sustainable development policies (reduction in the use of fossil resources…) ; • Diversification of the national economy and creation of a new Res-focused socio-economic dynamic; • Acquisition of scientific and technical skills; • Establishment of a high-performing and sustainable industry; • Integration in the global RE energy market.

5. Assets for Algeria to develop REs (1/3)Solar potential Effectively exploitable potential in Algeria • CSP producible : estimated at 169 440 TWh/year. • PV producible: estimated at 14 TWh/year.

6. Assets for Algeria to develop REs(2/3)Existence of an R&D network • Centre de développement des Energies Renouvelables (CDER): UDES – URAER and URERMS, • Unité de Développement de la Technologie du silicium (UDTS), • Unité de Recherche Matériaux et Énergies Renouvelables (URMER) at Tlemcen University, • Research Laboratories in several universities: USTHB, Constantine, Sétif, etc. • Over 400 full-time research scientists (Materials sciences, technology, components, systems, engineering…).

7. Assets/opportunities for Algeria to develop/harnessREs (3/3) • Considerable silica potential; • Existing industrial base for the development of a RE sector; • Geographical proximity of European, African, and Arab markets; • Regional and Mediterranean Initiatives for the promotion of REs.

8. REProjects (completed or underway) • Electrification of 18 villages supplied with PV kits • Hybrid Hassi R’Mel solar/gas power plant (150 MW) in service • Construction of PV modules manufacturing plant of 116 MWp (2014) • 10 MW wind farm in the Adrar region • Electrification of 16 villages supplied with individual PV kits (5MW) • Pilot power plant with 4 PV sections (1.1 MWp) • CSP power plant projects with storage capacity • Silicon manufacturing plant project • RE equipment approval centre

9. National programme for renewable energiesNational energy policy Ambitious goal pursued to propel Algeria players in the solar sector: • By 2030, 40% of the power generated will be from a renewable source • Establishment of high-performance RE industries, mainstreamed gradually country-wide Exploration of all avenues for a useful and optimal consumption: • Thermal isolation • Solar heaters (SH) • Energy-saving lamps (ESL) • Etc.

10. National programme for renewable energiesREdevelopmentstrategy • Development of solar (PV and CSP), wind and geothermal sections; • Technology Acquisition via the implementation of “school” projects and strategic partnering; • Local manufacturing of equipment and progressive industrial mainstreaming nation-wide; • University/Business partnerships (harnessing of research outcomes); • Provision of support through an appropriate regulatory framework and appropriate incentives.

11. National programme for renewable energiesImplementation The programme consists in installing a power of renewable origin with a capacity in the region of 22 000 MW between 2011 and 2030 • 12 000 MW for the domestic market • 10 000 MW (could be earmarked for export) Stages of the programme: • Stage 1: 2011-2013 (implementation of pilot projects and technology testing) • Stage 2: 2014-2015 (beginning of programme roll-out) • Stage 3: 2016-2030 (large-scale roll-out)

12. National programme for renewable energiesImplementation

13. National programme for renewable energies Total capacity (MW) to be installed by section

14. National programme for renewable energies Implementation • Training: - Provision of support through a training and recruitment plan - Establishment of IAER • Organisation: - Sonelgaz will handle projects in the energy sector - Establishment of RE Commissioner • R&D: - Agreement between Sonelgaz and research centres - Establishment of a technological platform • Manufacturing: - PV: 60% in 2013 and 80% in 2020 - CSP: 50% in 2020 - Wind: 50% in 2020

15. Institutional and Legal Aspects relating to Renewable Energies

16. Legal Instruments (1) The development of renewable energies is supported by a set of legal and regulatory instruments. These are mainly acts relating to: • The harnessing of energy; • Electricity and pipe-based gas distribution; • The promotion of renewable energies with a view of ensuring sustainable development.

17. Legal instruments (2) Act n°99-09 of 28 July 1999 on energy harnessing This act defines the general framework of the national policy for the energy harnessing and identify the means to achieve this goal. - The promotion of REs is defined as one the tools for harnessing energy through saving on conventional energies.   - It defines the conditions, means of supervision and implementation of the national policy in energy harnessing through: • the enforcement of measures and actions geared towards achieving the rational use of electrical and gas power; • the development of renewable energies; • the alleviation of the environmental impact of the energy system.

18. Legal instruments (3) Act n°02-01 of 5 February 2002 on electricity and pipe-based gas supply • Principle of opening the electricity market to private investors. • Concession system for electricity and gas distribution. • Provisions for the promotion of electricity generation from renewable energy sources and mainstreaming into the national grid. The overexpenditures arising from such measures: • can be allocated for by the State; • can be covered by the Caisse de l’électricité et du gaz (Fund for Electricity and Gas); • can be charged on tarriffs. • Producers using renewable and/or co-generation systems may be granted some incentives.

19. Legal instruments (4) Act n°04-09 of 14 August 2004 pertaining to the promotion of renewable energies with a view of ensuring sustainable development • Implementation of a national programme for the promotion of new and renewable energies (EnR), • Instruments for promoting renewable energies (Mechanism for certifying the energy source and encouragements), • Establishment of national RE Observatory.

20. Incentives Incentives (financial advantages and tax benefits, and customs duties) are provided for by the Act on energy harnessing. They target actions and projects contributing to the improvement in energy efficiency and the promotion of renewable energies. • FNME: aims at financing projects and at granting non-remunerated loans and guarantees for loans taken out from banks and financial institutions for in promising investments geared towards energy efficiency (Art 91-LF 2000). • FNER : aims at contributing to the funding of actions and projects in line with the promotion of renewable energies and co-generation (Art 63-LF 2010). Draft executive order: Encouragement of power generation from renewable energy sources and co-generation systems (Finalised draft) • Encouragement mechanism, • Eligibility criteria, • Control of the quantity of power generated.

21. Development of electricity infrastructures Executive order n°06-429 of 26/11/2006 specifying the rights and obligations of electricity generators The electricity generator is entitled: •   to connect their facilities to the electricity conveyance and distribution networks (connection effected by the manager of the relevant network); • to enjoy a priority sale of their production on the electricity market which will be compensated (Art 8). Executive order n°08-114 of 9/4/2008 determining the modalities for granting and withdrawal of concessions for electricity and gas distribution and specifying the concession holder’s rights and obligations The concession holder is required to connect the facilities for power generation from RE sources and/or co-generation to the distribution network (Art 34).

22. Conclusion Through this RE development programme, Algeria: • Puts renewable energies at the heart of its energy and economic policies; • Intends to position itself as a major player in power generation based on photovoltaic solar and thermal solar systems, which will be the engines of a sustainable development; • Considers this energy as a socio-economic development lever, mostly through the establishment of wealth and employment generating industries; • Gives itself the means to be a long lasting player on the energy market.

23. Thank you for your kind attention!