An overview of different energy sources in Algeria

Amine Boudghene Stambouli

Department of Electronics, Electrical and Electronics Engineering Faculty
University of Sciences and Technology of Oran
BP 1505, EL M’Naouer, Oran (31000). Algeria.
Tel & Fax: 00 213 41 56 03 29/56 03 01
E-mail: aboudghenes@yahoo.com, boudghene@univ-usto.dz

Abstract

During the last few years, political support for renewable energies has been growing continuously both at the national
and international level and most scientists now agree that the Middle East and North Africa are perfectly placed to play
a leading role in the lucrative future solar and wind power industries. Algeria plays a very important role in world
energy markets, both as a significant hydrocarbons producer and exporter, as well as a key participant in the renewable
energy market. Due to its geographical location, Algeria has been considered as one of the best countries for exploiting
solar energy. Algeria enjoys a relatively high abundance of sunshine, solar radiation, and moderate wind speeds, and
biomass energy resources. An overview of the energy situation in Algeria is introduced with reference to the end uses
and regional distribution. It also, discusses the present and future on solar and wind applications. The problem related
to the use of renewable energy sources and polices to enhance the use of these sources are also analysed in this paper. In
addition the technical know-how for each renewable energy sources technology is defined. The co-importance of both
policy and technology investments for the future Algerian markets of RES and competitiveness of the solar/wind
approach is emphasized. Some examples of policy significantly impacting Algerian markets are reviewed, and the
intention of the new Algerian renewable energy sources initiative is discussed.

Key words: Solar, Wind, Hydro, Biomass and Geothermal

1. Introduction

Energy is recognized as a crucial element in a country development process. Energy produced and used
in ways that support human development in all its social, economic and environmental dimensions is what is
meant by sustainable energy [1]. The goals of energy policy towards sustainable development are founded on
three pillars namely: energy security and economic growth (Profit), environmental protection (Planet) and
social responsibility (People) [2]. Not surprisingly, the use of Renewable Energy Sources (RES) prolongs the
lifetime of fossil energy sources, boosts employment, has a dampening effect on energy price, reduces local
and regional pollution, cuts emission on climate-damaging CO2 and increase security of supply. In order to
balance between energy need, and environmental protection and economy, RES are the pivot for sustainable
development. The important economical changes undertaken these last years on the national and the
international levels, led Algeria to embark on structural reforms aiming to a progressive adaptation, notably
in the energy sector (fossil and renewable energies), so as it will be comply with a free, open and competitive
economy. In this perspective, the Algerian government intends to promote and speed up a greater and more
diversified participation of the energy Private-sector for investments development, technologies acquisitions,
know-how and access to foreign markets. This new policy required changes of the legal and institutional
frameworks that the government has pursued, on both the global and sector-based levels to overcome
challenges facing the efforts to increase renewable energy use, which have to be understood and properly
translated into a comprehensive regulatory framework. The setting up of a specific and competitive energy
tax system (for renewables), combined to the formulation of more inciting investment conditions, will give a
new impulse to the energy sector activities development.
The law on Electricity n° 02-01, enacted on the 5th of February 2002 [3,4], devotes the liberalisation of
the electricity sector with the opening of electricity production and distribution to competition and the non
discriminatory access of a third part to the network, while reaffirming public service maintenance. The bill
on hydrocarbons aims to developing sources of incomes, by improving the quantity and quality of products
and energy services supplied to consumers and by developing the loyal competition in an open and non
discriminatory framework.

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2. Geographic location of Algeria

Algeria’s geographic location has several advantages for extensive use of most of the RES (solar and
wind). Algeria situated in the centre of North Africa between the 38°-35° of latitude north and 8°-12°
longitude east, has an area of 2381741 km2 and a population of 32.5 Millions of inhabitants (13.7
inhabitant/km2) [5].
Administratively, Algeria is divided into 48 provinces and lies, in the north, on the coast of the
Mediterranean Sea. The length of the coastline is 2400 km. In the west Algeria borders with Morocco,
Mauritania and occidental Sahara, in the southwest with Mali, in the east with Tunisia and Libya, and in the
southeast with Niger (figure 1).

Figure 1: Solar suitable sites in the world and the Map of Algeria situated in the solar belt of the middle of the world

The climate is transitional between maritime (north) and semi-arid to arid (middle and south). The mean
annual precipitation varies from 500 mm (in the north) to 150 mm (in the south). The average annual
temperature is around 12 °C.
Three Ss should be the national energy policy drivers of Algeria namely: Solar, Sand and Space. The
Sahara (south of Algeria) covers a total area of 2048297 km2, approximately 86% of the total area of the
whole country.
The geographic location of Algeria signifies that it is in a key position to play an important strategic role
in the implementation of renewable energy technology in the north of Africa, as well as providing sufficient
energy for its own needs and even exporting such projects to other countries of Europe.

3. Energy data for Algeria

Algeria plays a central role in the energy world, as it is a major producer and exporter of oil and natural
gas. In 2008, Algeria produced approximately 1.4 million barrels per day (mbbl/d) of crude oil, of which
85% was exported, and 86.5 billion cubic meters (bcm) of natural gas, of which 70% was exported, mostly to
Europe. Algeria was the fourth largest crude producer in Africa, and the sixth largest natural gas producer in
the world. Oil and gas export revenues account for more than 95% of Algeria's total export revenues, around
70% of total fiscal revenues, and 40% of gross domestic product (GDP). Compared to other developing
countries with a similar GDP, Algeria’s energy consumption is high: 1.2 tons of oil equivalent (TOE) and
840 kWh of electricity per capita. However, these figures include self consumption and losses in the energy
sector due to LNG (Liquefied Natural Gas) exports. The share of oil in the country’s overall consumption
fell from 40% in 1990 to 34% in 2007; the share of gas increased from 57% to 64%. In industry, gas
accounts for nearly 53% of final consumption. Gas consumption also increased substantially in the
residential sector, and in 2007 accounted for 46% of final energy consumption. This evolution shows the
progressive adequacy of offer structure to the structure of our present reserves, richer in natural gas [6].
Primary energy production passed from 212 millions of tons oil equivalent (TOE) in 2003 to 260
millions of TOE in 2005. The primary energy production structure in 1980, made up of 87 % of oil and
condensate, has considerably developed for natural gas’ benefit, which now represents about 52 %.
Algeria’s revenues come mainly from exporting fossil fuels. In spite of a clear progression of national

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consumption, exportations’ share in energy commercial production remains determining (80 %). It has
passed from 56 MTOE in 1980 to 133 MTOE in 2003.
Reserves of oil announced in Algeria are 4.5 billion of TOE. Estimates of natural gas reserves, in 2004,
were around 4.52 1012 m3, which implies a lifetime of 62.2 years compared with an expected 61.9 years
globally [7].
As Algeria population grow many faster than the average 3%, the need for more and more energy is
exacerbated. In Algeria, the consumption of energy at the national level is increasing year after year due to
demographic and urban development, in addition to economic development in constant progression. As far
as the resources are concerned, based essentially on oil and natural gas, they are not unlimited and are slowly
being exhausted.
The national energy commercial consumption passed from 6 Million of TOE (MTOE) in 1970 to 32.7
MTOE in 2002, over 35.2 MTOE in 2003 and just under 40 MTOE in 2005 [8]. In unit terms, national
consumption passed from 0.3 TOE/inhabitant in 1970 to 1 TOE/inhabitant in 2003 that is a tripling of the
unit consumption in 30 years. The production of electricity in Algeria was 25.8 billion kWh in 2002 and
30.06 billion kWh in 2005 and the country consumption is between 25 and 30 TWh/year [8]. In a context of
economic recovery, energy demand could double by the year 2020 (60 MTOE, even 70 million MTOE) by
increasing uses of energy and economic activities.

4. Structure of power sector in Algeria

Algeria generated, Over the last five years, 185.8 109 kWh of electricity [9]. Conventional thermal
sources of which natural gas accounted for 94.5%, contributed almost all of Algeria’s electricity,
supplemented by a small amount of hydroelectricity (5%) and solar photovoltaic/wind (0.5%). Algeria is now
positively disposed to the promotion of RES and views renewables as a way of promoting the development
of small and local businesses in selected areas and diversifying supply patterns at the regional level. Algeria
has developed national programmes and set national indicative targets for renewables: to pursue the
development of alternative electricity sources, including solar and wind to achieve a share of renewable
energy sources in primary energy supply of 5% by 2015 and 10% by 2020. The Algerian energy sector is
mainly operated by the following executing authorities: SONATRACH SPA (National Company of
Hydrocarbons Research, Production, Transport, Transformation and Marketing); SONELGAZ SPA
(Algerian Company of Electricity and Gas); AEC SPA (Algerian Energy Company) and IAER (Algerian
Renewable Energy Institute)
The joint-stock company NEAL [10], created on the 28th of July 2002, is the first public-private
partnership. Its registered capital of 200 Million Algerian Dinars (DA) is shared among Sonatrach 45 %,
Sonelgaz 45 % and SIM 10 %. NEAL is a company developing projects in the production of electricity and
heat from the renewable energies, which are the thermal solar, the photovoltaic solar, the wind, the
geothermic and the biomass. It has also the dimension to fight against deforestation of the south of the
country.
In 2003, the public authorities adopted the national energy efficiency policy by implementing the law of
July 1999 relating to energy efficiency. The implementation mechanism for this strategy is composed of four
instruments defined within the framework of this law, namely: PNME (National Energy Efficiency
Programme); FNME, (National Energy Efficiency Fund); CIME (Inter-sector Energy Efficiency
Committee) and APRUE (Algerian National Agency for the Promotion and Rationalisation of Energy Use).
The CREG (Commission of regulation of electricity and gas) is commissioned (art. 113 of the energy
law) [3] to watch over the competitive and transparency functioning of the electricity market for the users
and operator’s interest. Its role is fundamental in the organisation and functioning of the electricity market, in
general, and the renewable electricity, in particular. Article 128 of the law on electricity [3] imposes on the
operators to lodge with the CREG sale and purchase contracts of electricity. This provision permits to know
exactly the quantity and nature of the electricity sold within the market. For the renewable electricity, it is
thus possible to know its origin: thermal or PV solar, wind, biomass or geothermal. The promotion of the
renewable energies was thought with the objective to reinforce and favour the emergence of a local industry
or a partnership in order to take a position in this market. In other word, the approach chosen by the sector of
energy is based on the reform introduced by the law 02-01 of electricity and distribution of gas, which
permitted, by exploiting the forces of the market, to promote the renewable energies in a long-lasting way.
The most important objectives of Algeria’s energy policy and the portfolio of NEAL include: ensuring
energy security of the country; more power for the remote area in the south; clean power to sustain the
economical development; increasing the competitiveness of the economy and its energy efficiency;

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protecting the environment from the negative effects of energy-related activities; four solar power plants in
the south; four wind power plants in the south and achieving a solar hydrogen production.
Sonelgaz is responsible for the operation and maintenance of thermal, hydro power, solar and wind
plants throughout Algeria. In addition to the production of energy, its activities also include the transport,
transformation and distribution of electrical energy as well as the transport and distribution of natural gas and
renewable energies. All of these structures and instruments mentioned above are under the supervision of the
Ministry of Energy and Mines (MEM). Additionally, the MEM ordinance allows using renewable sources
together with other fuels such as natural gas (co-firing). The total existing electrical exploitation installations
capacity amounts the rate of 96%, more than 80% in the north of the country. The electricity market in
Algeria is very important with a growth rate exceeding 6% [11].

5. Renewable energies potentials in Algeria

The interest for the development of renewable energies was perceived very early in Algeria with
the creation of the solar energy institute as soon as 1962 (independence year). More than 2 million
km2 receive a yearly sunshine exposure equivalent to 2,500 kWh /m2. The government seeks to
create a solar-gas synergy; taking advantage of the country’s abundant resources in both energies.
The assessed economic potentials, by the German Space Centre (DLR), of renewable energy sources in
Algeria are [4]:

• Thermal solar : 169 440 TWh/year

• Photovoltaic : 13.9 TWh/year
• Wind energy : 35 TWh/year

Algeria is in urgent need of an adequate energy infrastructure so that it can achieve higher levels of
economic development. This would allow all of its inhabitant’s access to a quality energy supply,
irrespective of their place of residence. Crucial objectives are targeted at substantially increasing and
enhancing the contribution of renewable energies and favouring energy self-sufficiency. Pilot projects
implemented in recent years justify the possibility to accelerate the use of indigenous energy resources,
particularly for electricity supply. Algeria generated 25.8x109 KWh of electricity in 2002 and 30.06x109
KWh in 2005. The consumption of the country amounted to a value between 25 and 30 TWh/year.
Conventional thermal sources of which natural gas accounted for 94.5%, contributed almost all of Algeria’s
electricity, supplemented by a small amount of hydroelectricity (5%) and solar photovoltaic/wind (0.5%).
Algeria has an important potential for power generation from renewable sources, for the domestic market as
well as for export to the European market. The current share of renewables is not very significant in the total
energy balance, but an ambitious development program was set up, with a specific law in 2004, including
incentives for electricity production from renewable, and the creation of a support fund and a renewable
energy institute (IAER: Institut Algérien des Energies Renouvelables). Through a March 2004 decree, the
government also introduced incentives for electricity production from renewable energy plants, including a
feed-in tariff [12].

6. Solar energy

The history of using solar energy in Algeria backs to 1954 with the solar furnace built by the French for
ceramic fabrication purpose [13]. The insulation time over the quasi-totality of the national territory exceeds
2000 hours annually and may reach 3900 hours (high plains and Sahara). The daily obtained energy on a
horizontal surface of 1m² is of 5 KWh over the major part of the national territory, or about 1700 KWh/ m² /
year for the North and 2263 KWh /m²/ year for the South of the country (table 1 and figure 2) [13].

Table 1: Solar potential in Algeria [13]

Areas Coastal area High plateau Sahara
Surface (%) 4 10 86
Average duration of sunning (Hours/year) 2650 3000 3500
2
Received average energy (KWh/m /year) 1700 1900 2650
The solar deposit exceeds the 5 billion GWh.

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 Figure 2: Potential sites for solar electricity supply and example of the overall daily exposure received (in KWh /
m² / day) in Algeria [13]

The amount of solar radiation in Algeria means that it would be feasible to consider solar energy as a
potential energy source for different applications in the form of individual photovoltaic solar panels or
systems. Solar photovoltaic energy is being developed in Algeria mainly for six applications: domestic uses,
water pumping, refrigeration, village electrification, lighting, and telecommunication. The development of
solar energy plants is supported by the Ministry of Energy and Mines and realized mainly by Sonelgaz and
other private installers companies. The solar energy is regarded as an important line of research within the
structure of the Department of renewable energies of Sonelgaz. UDTS/CDTA (Silicon Technology
Development Unit in collaboration with the Advanced Technology Development Centre), in Algiers, works
on solar cells elaboration (clean room available) and with an encapsulation procedure workshop permits the
production of 250 KW/year up to 500 KW/year [4]. A polycrystalline silicon growth oven having a capacity
of 25 ingot /year, in the first phase, allows the elaboration of silicon ingot. Silicon ingot cutting facilities and
electrical, optical and structural assessment equipment are also available. Manufacturing PV modules at
ENIE (National Electronics Industry Company) [10] are limited in mono and polycrystalline silicon solar
cell elaboration, assembly PV modules, and fabricating the support structure. UDES/CDER (Solar
Equipment Development Unit in collaboration with the Renewable Energies Development Centre) ensures
the development of solar thermal and photovoltaic equipment (domestic, industrial and agricultural),
electronic, thermal and mechanical devices and systems involved in the application of solar energy. This
means that the establishment of a silicon production industry is possible in Algeria to supply the local,
MENA and European markets.

6.1. Rural electrification by solar photovoltaic energy

It relates to the electrification of eighteen (18) villages very far away from the networks existing and
located primarily in the provinces of the great south (Adrar, Illizi, Tindouf and Tamanrasset). The number of
rural hearths to be fed is 580. This program is financed entirely by the Special Funds for Development of the
South Areas from the Ministry of Energy and Mines. The solar applications, by implanting photovoltaic
power plants, are an extension of already existing diesel power stations in isolated areas and are limited to
electrification, pumping, telecommunication, public lighting and small refrigeration systems. The
photovoltaic installations used are of the semi-collective type. Sonelgaz have gone down the solar route for
these 18 villages in the rural electrification programme with the aim of kick-starting the use of renewable and
particularly photovoltaic energy (list of villages in table 2) [13].

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Table 2: Installed power and daily home consumption (a), global installed power (b) and distribution per province of the
PV installations (c)
Province Village Installed power Consumption
(kW) (kWh/day/home)
Tamanrasset Moulay lahcen 9 1.48
In delagh 15 0.92
Tahifet 61.5 1.30
Arak 61.5 1
Amguid 51 1.60
Tahernenet 30 1.13
Tin tarabin 34.5 1.44
In blel 15 1.38
(a)
Tindouf Gara djebilet 33 1.47
Daya el khadra 24 1.55
Hassi mounir 21 1.68
Adrar Hamou moussa 6 1.53
Tala 16.5 1.61
Illizi Imehrou 16.5 0.63
Ifni 7.5 0.60
Oued samen 15 0.68
Tihahiout 12 0.57
Tamadjart 24 0.80

System (kWp) Total

Power type 1.5 3 6
(b) Number of installed systems 10 50 48 108
Connection capacity in number of homes 30 30 57 906
0 6
Global installed power 453 kWp

Province Homes by unit Power in (kWp) Energy (kWh) Stock (kWh)

Tamanrasset 555 277,5 1665 4026
(c) Illizi 150 75 450 1100
Tindouf 156 78 468 1144
Adrar 45 22,5 135 330
Total 906 453 2718 6600

The concerned eighteen villages which have benefited from these installations have been selected
according to their geographical location. These villages, situated in the South, with a small number of
households, were typified by their isolation and their remoteness from any communications network.
Supplying them by conventional methods (diesel, transmission grid), in addition to excessive start-up costs,
would have posed the problem of trucking in the fuel, and in the case of the grid, of undoubted difficulties in
constructing and maintaining the overhead lines.
One of the strengths of photovoltaics is to be found in its decentralised applications, cutting out the cost
of transporting the energy produced. This is particularly true for supplying isolated consumers in areas of
low population density, where the demand consists essentially in satisfying basic energy requirements (light,
refrigeration, pumps, television and radio). Other notable characteristics of photovoltaics are: modular design
enabling it to be extended according to need; the possibility of developing small businesses in areas of low
economic development; protection of the environment and limited capital assets, capable of being used
flexibly and in a decentralised way, and of being moved about over longer periods of time.

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 This developing strategy, by Sonelgaz, has been elaborated to promote the dissemination of renewable
energies on sites where they are profitable compared to classical energies and to guide scientific research
efforts in order to allow generalisation of renewable energy via mass production. The aims to be achieved
consist of the contribution to a conservative policy for hydrocarbons both by increasing the renewable energy
share within the national energy balance and by improving the living conditions of isolated communities. In
the absence of any reference, this first operation led by Sonelgaz would allow on one hand to supply isolated
area with electricity and on the other hand to collect information about: equipment behaviour in Saharan
environment; matching the systems with the electricity supply; maintenance organization and management
and technical -economic system optimization
The rural electrification second phase project will be approached with the same way as certain similar
projects developed in the neighbouring countries. The role of NEAL would be in this case a provision of a
financial engineering service. It is a question, for the populations non-connected to the network, of being
able to profit from photovoltaic systems of production of electricity for the domestic needs and the pumping
of water. The law on electricity offers the possibility to build the development of the production of electricity
by concessions, which can be connected to private companies created around villages in the South for the
benefit of local entrepreneurs. The Society of capital development (capital risk) being a privileged tool of
financing in this case. Mono and multi - Crystalline Silicon modules are commercially available in Algeria
and due to the interest given by the Algerian Government for developing remote areas as a socio-economic
goal, the demand for more photovoltaic systems is expected to increase in the coming decade for more future
solar energy production infrastructures.

7. Wind energy

Wind energy is the fastest growing energy source in the world and wind power is one of the most widely
used alternative sources of energy today. The energy production in wind turbines depends mainly on wind
speed in a place in which wind power plant is located (power curve). Depending on the wind velocity, it is
possible to differentiate between four phases of operation:
• At very low wind speed, the wind energy is not sufficient to overcome the system’s moments of
friction and inertia, and the rotors remain stationary.
• Starting at a certain wind velocity, about 3 m/s, the wind turbine will turn. In this phase, the power
output increases as a function of the wind speed to the power of 3 which means that twice the wind
velocity produces 8 times the electrical power.
• If the wind velocity increases further, then the maximum capacity of the generator will be
approached, and the energy generation has also reached its maximum.
• The surplus energy from a further increase in wind velocity must be bypassed. The maximum power
of the system is thus determined by the flow over the rotor area, and does not depend on the number
of rotor blades. During a gale-wind speed of about 24–26 m/s, the mechanical load on the rotors is
too high. Pitch-controlled turbines and active-stall systems are then taken off the grid and the entire
rotor is turned out of the wind to protect the overall turbine structure.
Wind energy can then be feasible where the average wind velocity is higher than 5–6 m/s. Algeria has a
huge plan to develop wind energy. Studies of indigenous wind resources, performed by the CDER during
recent years, show that the climatic conditions in Algeria are favourable for wind energy utilisation. The
wind map of figure 3, established by the MEM [14], shows that 50% of the country surface presents a
considerable average speed of the wind. The map also shows that the South-Western region experiences high
wind speeds for a significant fraction of the year as seen in table 3 [15] showing the annual average wind
velocities and power in the three sites of the South-West region of Algeria. This energy potential is ideal for
the water pumping especially in the high plains.
The wind resource has also been assessed by the developer, Sonelgaz, and at present, there are six pilot
projects for electrification and telecommunication which are identified and quantified. These are Adrar,
Tindouf, bordj Badji Mokhtar, Bechar, Tamanrassat and Djanet.

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 Figure 3: Wind chart of Algeria [14]

Table 4: The annual average wind velocities in the six identified places [15]
Sites Adrar Tindouf Bordj Badji Bechar Tamanrassat Djanet
Mokhtar
Annual average speed 6.3 5.1 4.6 4.4 3.7 3.3
(m/s)

The region of Adrar receives the most wind in the country judging from the results of the preliminary
survey. Evaluations of powers recoverable at heights from 10 to 50 m could conclude in registering this
region as a favourable site for the establishment of a windy farm. Other sites (North, High Plateaux) hide
non-negligible energetic potentials (usable energy, figure 3). The installation, by Sonelgaz, of a 30 MW wind
farm in Adrar region and the nine assessment stations in different regions of Algeria is seen as a second step
in stimulating much faster the use of the wind power. The topography and terrain roughness of these
prospective wind sites are also measured and quantified to better simulate and understand the wind flow.

8. Photovoltaic and wind installations throughout Algeria

The distribution per province of the photovoltaic and wind installations, the distribution of installed
power per applications and the distribution of installed power per resources are respectively listed in table
5, 6 and 7 [4]. The overall installed power is 2.353 MW.

Table 5: Distribution per province of the photovoltaic/wind installations [4]

Provinces Resource Installed Provinces Resource Installed
Power (W) Power (W)
Algiers Solar /Wind 46 610 Medea Solar 5 000
Adrar Solar 234 900 M'sila Solar /Wind 45 500
Batna Solar 7 500 Naama Solar /Wind 88 400
Bechar Solar 48 000 Ouargla Solar 60 600
Biskra Solar 5 000 Oum El Bouaghi Solar 12 500
Blida Solar 6 000 Saida Solar 40 200
Bordj Bou Areridj Solar 2 000 Setif Solar 4 800
Bouira Solar 3 000 Sidi Bel Abbes Solar 39 000
Constantine Solar 1 500 Souk Ahras Solar 6 000
Djelfa Solar /Wind 114 700 Tamanrassat Solar 578 500
El-Bayad Solar 78 500 Tebessa Solar 64 000
El-oued Solar /Wind 31 000 Tiaret Solar /Wind 89 500
Ghardaia Solar 32 750 Tindouf Solar 96 150
Illizi Solar 153 850 Tipaza Solar 2 400
Khenchla Solar 13 000 Tizi Ouzou Solar 6 000

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 Laghouat Solar /Wind 93 300 Tlemcen Solar /Wind 54 500
Mascara Solar 1 000 Other Solar 287 600
realizations
Total Solar /Wind : 2, 353, 260

Table 6: Distribution of installed power per applications [4]

Applications Installed power (W) Percentage %
Electrification 1352800 57
Pumping 288400 13
Public lighting 48430 2
Telecommunication 498000 21
Others 165630 7
Total 2,353,260 100

Table 7: Distribution of installed power per resources [4]

Resources Installed power (W) Percentage %
Solar 2279960 97
Wind 73300 3
Total 2,353,260 100

9. Hydroelectricity potential

Both the kinetic energy and the potential energy from flowing water can be converted into mechanical
power by a turbine wheel, which in turn can drive machines or generators. Hydropower is a mature
technology which, worldwide, generates the second largest share of energy from renewable sources, after the
traditional use of biomass. 17% of the electricity consumed in the world today is generated by hydroelectric
power stations. The overall flows falling over the Algerian territory are important and estimated to 65
billions m3 but of little benefit to the country: restrained rainfall days, concentration on limited areas, high
evaporation and quick evacuation to the sea. Schematically, the surface resources decrease from the North to
the South. Currently the evaluation of useful and renewable energies is about 25 billion m3, of which the 2/3
approximately is for the surface resources. 103 dam sites have been recorded. More than 50 dams are
currently operational. The share of these small-sized production parks is about 5 % which supplements the
natural gas production of electricity. The total capacity of 13 of them is 269.208 MW as shown in table 8 [4].
Hydraulic electricity represented, with 265 GWh in 2003, barely 1 % of the total electricity production.
The electricity generation from hydropower is low due to the fact that the precipitation is low and unevenly
distributed throughout the country.

Table 8: Hydroelectric production park [4]

Plant Installed power (MW) Plant Installed power (MW)
Darguina 71.5 Ighzernchebel 2.712
Ighil Emda 24 Gouriet 6.425
Mansouria 100 Bouhanifia 5.700
Erraguene 16 Oued Fodda 15.600
Souk El Djemaa 8.085 Beni Behde 3.500
Tizi Meden 4.458 Tessala 4.228
Ghrib 7.000 Total 269.208

10. Geothermic energy

Geothermal energy is the energy derived from the heat of the earth's core. It is clean, abundant, and
reliable. If properly developed, it can offer a renewable and sustainable energy source. People have used
geothermal resources in many ways, including healing and physical therapy, cooking, space heating, and

9
other applications. One of the first known human uses of geothermal resources was more than 10,000 years
ago with the settlement of Paleo-Indians at hot springs. Geothermal resources have since then been
developed for many applications such as production of electricity, direct use of heat, geothermal heat pumps,
etc.
Concerning the geothermic energy in Algeria, the geotectonic framework suggests that Algeria should
not be lacking in commercially exploitable sources of geothermal energy. Geothermic is not to be excluded
from the electric option of the renewable energies network. Some of these sources can be exploited for the
purpose of renewable electricity production. This view is further strengthened by the presence of a fairly
large number of hot springs in different parts of the country. More than 200 geothermal sources were
counted by the CDER and are recorded of which one third's temperatures are superior to 45°C and where the
highest temperatures registered are 98 °C in Hammam El Maskhoutin and 118°C in Biskra, in the western
part of the country [13]. These hot springs are numerous but unfortunately not exploited for industrial ends.

11. Biomass energy

The oldest and simplest way of using energy is to burn the biomass. The generation of electricity and
heat from biomass is a particularly attractive form of energy conversion from the climate point of view. The
biomass in Algeria potentially offers great promises with bearing of 3.7 millions of TOE coming from forests
and 1.33 million of TOE per year coming from agricultural and urban wastes (365 kg per Algerian as urban
wastes); however this potential is not enhanced and consumed yet. A pre-survey showed the feasibility of
production of electricity by modals of 2 MW that can reach a peak of 6 MW from the discharge of Oued
Smar in Algiers. The study integrates the drainage of the site [16].
Regulations from the MEM which support using of biomass from energy crops rapidly caused an
increase in interest for connection agriculture and energy sector. This is seen as a first step in stimulating
much faster the use of biomass in Algeria.
Biogas is also considered to be an attractive and relatively cheap energy source. In addition, disposal of
biogas by combustion is absolutely necessary to protect the environment; in particular, to protect the
atmosphere against emission of unburned methane contained in biogas. A gradual growth of the use of
biogas, particularly from landfills, has commenced at the UREERMS (Solar Equipment Experimentation
Unit in the Sahara Area) which is seen as a step forward in the use of biogas in Algeria. A very promising
alternative for burning is the gasification of biomass. Using gaseous biogenic fuels, it is possible to apply
proven and efficient techniques like gas turbines and cogeneration units.

12. Solar Hydrogen

The solar-hydrogen energy system for Algeria would could extend the availability of fossil fuels
resources, reduce pollution, and establish a permanent energy system. It could do so by solar production of
hydrogen and then utilizing hydrogen as an energy carrier as well as exporting it to Europe. This would
provide Algeria with a clean permanent energy system, and would enable it to maintain and improve its
overall GNP, as well as improving its quality life. Algeria and the International Energy Agency agreed on
technological cooperation in developing solar-hydrogen economy [17,18]. The Algerian Hydrogen
Association (2AH) has been created in June 2005 during the hydrogen conference held in Algiers.
Initial work has already began in the areas of utilizing solar energy in producing hydrogen (CDER) for
fuel cell but have not yet resulted in power generation and are rather in primary stages as compared with the
work on solar and wind energy sources.
At the moment natural gas steam reforming is a likely initial source of hydrogen, due mainly to being a
highly established process and having both natural gas distribution infrastructure and large scale hydrogen
production facilities already in place.
NEAL tries achieving, in the near future, a solar hydrogen production as announced by the president of
NEAL. Therefore, the sustainability for the environment is obvious. He also insists upon clean power to
sustain the economical development of Algeria. In fact, there are several projects being qualified for
application within Clean Development Mechanism (CDM) in different fields including:

• Renewable energy;
• Fuel switching for transportation (GPL fuel and the construction of a factory producing clean fuel,
the GTL as reported by Oxford Business Group) [19];

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 • Industry (GGFR, Global Gas Flaring Reduction Partnership to reduce GHG emission at the
Sonatrach’s oil and gas plants) and
• National energy efficiency strategy (PNME, FNME, CIME and the APRUE) as listed above.

13. Technical know-how transfer and technical cooperation

The development of solar energy in Algeria is supported by the Plataforma Solar de Almerı´a (PSA), a
division of the Centro de Investigaciones Energe´tica, Medioambientales y Tecnolo´gicas (CIEMAT). This is
the largest research and development centre in Europe, devoted to high-concentration solar energy
technologies. The PSA has been functioning since the 1980s, and is regarded as an important line of research
within the structure of the Department of Renewable Energies of the CIEMAT.
A techno-pole has been created including Sonatrach-Sonelgaz and NEAL, CDER, Laghouat and
Ghardaia universities and the Algerian Space Agency (ASAL). It also includes DLR and CIEMAT [13].
Additionally, technical cooperation is part of the CDER policy. This cooperation will assure a proper running
of the centre. The technical cooperation as a scientific cooperation in research and development projects will
incorporate the CDER’s staff and laboratories into bilateral or international research activities of renowned
worldwide institutes in the field of renewable energies such as:
• Cooperation with the European Union with the creation of the PIN (National Information Point)
which aims the integration and Algerian participation in the European research programs on REs. By
this means an intensive know how transfer is ensured.
• Cooperation with Spain in the field of solar water pumping systems, mini-central grid connected PV
systems and electrification of the touristy region of Assekrem by means of PV energy.
In the frame of the SPP1 of Hassi R’mel and its know how transfer task, there are activities of training
and technical cooperation with CIEMAT. These activities are performed initially in Spain and afterwards
also in Algeria.
The international cooperation is an important activity for the agency because of its contribution in terms
of international expertise and know-how. For this purpose, APRUE has developed cooperation relations both
within the bilateral and multilateral framework. The stake in MEDENER, the association of Mediterranean
energy efficiency agencies, enables APRUE to keep up to date with the programme, projects and actions in
the region, but also to make itself known to the financial backers and promote both the Algerian energy
efficiency market and the energy policy at the international level. Within the bilateral framework, APRUE
has developed projects particularly with France and Spain.
The cooperation with France is of an institutional nature. This cooperation was formed, in 2003, through
an agreement between APRUE and its counterpart the ADEME (the French Environment and Energy
Management Agency). With regard to the cooperation with Spain, it has approached two sectors: industry
and road transport.
At the multilateral level, APRUE has benefited from donations from the European Commission, from the
GEF (via the World Bank and the UNDP) within the framework of projects in several sectors. APRUE
intends to develop the cooperation at the international level even more. Negotiations are underway with the
Italian and Quebecois partner, the GTZ of Germany, Afrec (African Energy Commission) and UNESCO to
develop, with their support, energy efficiency projects in partnership with all consumption sectors. The
actions planned for the years 2004 and 2005 had the objective of looking for and coordinating technical and
financial international cooperation in order to support the national energy efficiency policy in Algeria, as
well as to promote the Algerian energy efficiency market at the international level.

13.1 Available technical know how

Universities, UDTS/CDTA, UDES/CDER and their research units in Adrar, Ghardaia and Tlemcen, their
equipments, staff and their know how can form a sound basis for a further successful dissemination of
renewable energy technologies and applications in Algeria.
For the sustainable application of renewable energy systems in Algeria and their widespread practical
use, suitable infrastructure of concerning expert exists and who can act as source of information about the
renewable energy technologies for those people who will be interested on such energy supply as well as for
a wider ranging distribution of knowledge and advantages of renewable energy systems. Parallel to this
spread of information a build-up of opportunities for installation, maintenance and services, eventual repair
and sale of system components and systems exist [20].

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14. Total MENA-Europe HVDC Interconnections (by DLR)

Algeria is planning the realization of the projects of cables towards Europe. The concept of a MENA-
Europe Link using High Voltage Direct Current power (required and to be supplied for different
applications) transmission technology is summarized as follow (see also figure 4) [21]:

4000

3500

3000

2500

2000

Year 1500

2000 1000

500

2025
Power required & supplied
(TWh/year)

Old Plants MENA CSP Export CSP Desalination CSP MENA

New Plants MENA Total Demand MENA Total Demand EU

Figure 4: Interconnections MENA-Europe, power required & supplied for different applications [21]

15. Market, promotion and trend in the development of renewable energy sources in Algeria

The percentage of renewable energies in our national energy balance remains insignificant. But this
situation cannot stay in an embryonic stage and the interest of introducing renewable energies in Algeria is
becoming a declared desire of the public authorities; the results of the proposed actions will enable
assessment and decision making elements to be given to the energy policy players. There is a market of
electricity, which, at present time, is largely defined by the law 02-01 on electricity and distribution of gas
which permitted, by exploiting the forces of the market, to promote the renewable energies in a long-lasting
way. A statutory text or the decree on the costs of diversification aims at bringing the share of electricity
produced by the renewable energies to 5 % of the total electricity to be produced by 2015, by introducing
incentive measures for all the branches of energies used to produce electricity.
The action plans of the years 2004-2005 has particularly planed to make a clear diagnosis of the
evaluation subsidiaries of this type of energy, to make the public authorities and the industrial players aware
of this and to propose a national renewable energy development strategy. The promotion of solar energy is
undergoing spectacular acceleration with, particularly, the launch of the important hybrid solar-gas power
plant in Hassi R'mel, among many others that are eligible for the clean development mechanism's financing.
The setting up of a portfolio of projects will be based fundamentally upon an approach to the market.
The local market will be stated now as the statutory texts and will be enforced such as the decree on the costs
of diversification. The last meeting on energy, held in Roma between the Ministers of the European Union
and the Maghreban countries (Morocco, Algeria, Tunisia and Libya), retained in its declaration the
promotion of the production of electricity derived from renewable energies in the Maghreb region. The
following objectives have been selected [22]:
• For the local market, the size should reach 500 MW by 2015.
• For exportation, the objective of the forthcoming five years remains the European market, which is
able to absorb 1,000 MW by 2020 in renewable energy coming from Algeria.

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 The North Africa is perfectly placed to play a leading role in the lucrative future solar power industry,
says a report released on October 2005 by Science and Development Network (SciDevNet). The report says
that in 20 years, solar power could provide the same amount of electricity as 72 coal-fired power stations.
This is enough to supply 100 million people, or the combined populations of Algeria, Morocco, Tunisia and
Libya. By 2040, solar thermal power plants could supply five per cent of global electricity demand. Algeria
is in urgent need of an adequate energy infrastructure so that it can achieve higher levels of economic
development. This would allow all of its inhabitants access to a quality energy supply, irrespective of their
place of residence. Crucial objectives are targeted at substantially increasing and enhancing the contribution
of renewable energies and favouring energy self-sufficiency. The objectives established by NEAL are
focused on raising renewable energy production to 1400 MW in 2020 and 7500 MW at the beginning of
2025. The electrical power will be obtained from solar power plants, which are exclusively solar, or from
hybrid solar plants, which also use other forms of renewable or conventional energy, preferably natural gas.
The Algerian Government has been promoting the use of renewable energy by means of a series of laws and
official programmes already mentioned.
The objectives established by NEAL are focused on raising renewable energy production to 1400 MW in
2030 and 7500 MW at the beginning of 2050. The electrical power will be obtained from solar power plants,
which are exclusively solar, or from hybrid solar plants, which also use other forms of renewable or
conventional energy, preferably natural gas (table 9) [23].
NEAL has solicited several sources of funding and supporting its projects. On the one hand, the
projected objectives is included within a solicited actions supported and financed by the world bank, IEA and
the European bank of investment, whereas on the other, it also receives funds from the Algerian Government
(Ministry of Energy and Mines).

Table 9: Total programme plans and objectives by NEAL [23]

Needs Local (MW) Export (MW) Total (MW)
2015 500 75 575
2000 1000 400 1400
2050 1500 6000 7500

The Algerian Government has been promoting the use of renewable energy by means of a series of laws
and official programmes already mentioned (table 10) [23].

Table 10: A total list of power production with renewable energy sources up to 2015 [23]
Project and place Capacity (MW) Bill-book Cost ($x106) Observation
SPP1, Hassi R’mel 150 2008-2010 160 Hybrid, solar power plant-gas
SPP2, Naama 400 2010-2013 286 Solar power plant
SPP3, Megha 400 2012-2014 286+120 Solar power plant+ unsalted
process
SPP4, Hassi R’mel 400 2012 286 Hybrid, solar power plant-gas
Total 1350 1138
WPP1, Adrar 10 2010-2012 23 Wind power plant
WPP1, Tindouf 6 2012-2015 13 Wind power plant
WPP2, Tindouf 10 2012-2015 23 Wind power plant
WPP3, Timimoun 10 2012-2015 23 Wind power plant
WPP4, Bechar 10 2015 23 Wind power plant
Total 36 82

By 2030, Algeria aims at generating 20% of its electricity from renewable sources, 70% of which from
CSP, 20% from PV and 10% from wind. The country’s strategy to develop renewable energy sources and
13
implement a low carbon economy fully supports its efforts to reduce vulnerability to oil prices and
hydrocarbon exports. Algeria intends to become a leading nation in the renewable sector, including in
manufacturing components, thanks to abundant domestic resources and targeted policies.
In view of the increasing energy intensity, the Government has emphasized energy efficiency and
renewable energy options. The National Energy Efficiency Fund of Algeria (FNME) was created in 2000
(Decree no. 2000-116), with the objective of financing energy efficiency investments as well as the budget of
the National Energy Efficiency Agency (APRUE) and the projects it manages under the National Energy
Efficiency Program (PNME), FNME’s annual budget is estimated at DA 500 million (Euro 57 million). The
resources of the funds include taxes on natural gas (DA 0.00015/btu) and electricity (DA 0.02/kWh), and an
initial government contribution of DA 100 million (Euro 1.15 million). Additional resources may include
taxes on energy intensive equipments, penalties, loan reimbursements, and government or other contributions
[12].
Algeria could one day be exporting solar energy to markets in Europe, as they will soon be connected to
European energy networks. In fact, the Algerian Energy Company (AEC), Sonatrach and Sonelgaz in
partnership with foreign companies (Spain and Germany) will realize, by 2015, a 2000 MW project of which
a share of the production will be exported to Europe (4% of the projected power or 75 MW will be produced
by a 150 MW concentrated solar-gas hybrid station in Hassi R’mel) [23]. Plans are underway for two
undersea cables with capacity of 1.2 GW each from Algeria to Spain and Italy which represent the concept of
a MENA-Europe Link using HVDC power transmission (figure 5) [24,25].

Figure 5: Interconnection North Africa-Europe trough the Mediterranean Sea [24, 25]

Conclusion

Algeria is endowed with large reserves of energy sources, mainly hydrocarbons and solar energy.
Regarding the completed assessment work done by the DLR, it appears that there is a considerable potential
for the utilization of renewable energy sources especially with respect to solar and wind power. However the
level of development of such energy sources is rather primary, but efforts should increase because of the ever
growing concern about the environment friendly sources of energy. It is now important in educating the
public as well as introducing special energy legislation to increase the usage of this clean form of energy
whether in private or public sectors and show the importance of energy efficiency and conservation.
Renewable energies are now one of the major elements of Algeria's energy policy for many reasons:

• Due to its geographical location, Algeria holds one of the highest solar reservoirs in the world.
• Algeria plays a very important role in world energy markets, both as a significant hydrocarbons
producer and exporter, as well as a key participant in the renewable energy market.
• The Government of Algeria has committed itself to develop solar energy as its largest renewable
energy source, to cover 5% of the national electricity needs by 2015.
• In July 2002, Sonatrach, Sonelgaz and the private company SIM formed a joint venture, New Energy
Algeria (NEAL), to pursue the development of alternative electricity sources, including solar, wind
and biomass.
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 • Algeria's commitment to its National Rural Electrification Programme, which continues to provide
solar power to villages in southern Algeria. Following a successful first phase, the second phase is
now underway.

The production of electricity from renewable sources constitutes a real opportunity of investment in
which economic viability is guaranteed by a contract of regulation. The multiplication of investments, the
effects of competition and the experience curve will progressively reduce the costs of production. The
quantities of renewable electricity for sale can be increased without any additional impact on the tariffs or the
budget of the government. Moreover, the production of renewable electricity is well valorised when exported
to Europe. The development of the production of renewable electricity will be self-sustained as it can provide
electricity continuously without notable intervention of the public authorities. The PV, CSP and wind
commodities have come into the market, and which is more and more popular by the common people. It is
predicted that the solar/wind energy has a big potential in future Algeria.

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