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Algeria adopts renewable energy development plan

2 Mar 2015

The Algerian government has adopted a national development plan for renewable energies, aiming at diversifying the national energy mix and to save fossil resources. The new plan updates the 2011-2030 plan adopted in February 2011 and introduces new elements taking into account renewable technology evolutions. Indeed, since 2011, Algeria has improved its estimations of renewable energy potential, especially for wind and solar and improved its national regulatory framework to attract investors. The cost of solar PV and wind technologies has fallen, making these energies economically viable, while high costs of CSP are slowing down the development of this technology.
The national plan aims to add 22 GW of renewables over the 2015-2030 period, with the first 4,500 MW commissioned by 2020. The bulk of this new capacity should come from solar PV (13,575 MW), followed by wind power (5,010 MW), solar CSP (2,000 MW), biomass (1,000 MW), CHP (400 MW) and geothermal (15 MW). The realisation of the programme should enable Algeria to cover 27% of its power mix with renewables by 2020. It would save 300 bcm of gas (8 times the 2014 gas consumption).
The Algerian state will contribute to the development of new capacities, through the National Fund for Renewable Energies and CHP (Fonds National des Energies Renouvelables et Cogénération, FNERC), which is funded by a 1% part of the oil tax. Algeria will introduce an incitation scheme, with 20-year feed-in tariffs for solar PV and wind power. Other technologies will benefit from investment grants by the FNERC (50% to 90% of the investment cost).

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