RENEWABLE ENERGY POTENTIAL AND IMPACT ON ENERGY MIX IN ALGERIA Naouel GUENDOUR interim Director of Regulatory Affairs Head office of the Strategy and the Prospective Sonelgaz - Algeria ARAB UNION OF ELECTRICITY 27-28 March 2012, AMMAN – Jordan

Summary Introduction Algerian electric system Challenges and context for RE development in Algeria Legal framework for RE development in Algeria Renewable energy potential in Algeria Renewable Energy Projects and achievements Algerian renewable energy program Impacts associated with the renewable energy development in Algeria Conclusion

Introduction Because of the depletion of fossil fuels, the rise of prices, in addition to the environmental considerations, the development of renewable energy, is becoming more important throughout the world, as an alternative for meeting energy needs in the long term. Technological changes, make renewables accessible economically. Although, Algeria has an important hydrocarbon resources, it should be prepared a transition to an energy mix through the integration of renewables in its national energy system The renewable energy program, which aims to achieve an integration rate of 40% of renewables by 2030 relys essentially on the use of solar energy, regarding the important potential which has the country.

Algerian electric system – Consistency 2010 Interconnected network in the North covering over 96% of national electricity demand, a production of 45 TWh in 2010 with a transmission network of more than 21000 km; Interconnections with Morocco’s network ( 04 lines) and Tunisia network ( 04 lines) ; 25 production sites in the big South to supply remoted sites (Oasis); About 7 million electricity customers and more than 3 million gas customers

45 TWh 6,8 millions of consumers ELECTRICITY IN ALGERIA – YEAR 2010 96% 45 TWh 6,8 millions of consumers

Evolution de 1970 à 2010 1970 Parameters 2010 650 Installed Capacity: MW 11 332 1670 Electric power generation: GWh 45 172 3 600 Electricity transmission network : Km 21 616 23 000 Electricity Distribution Network: km 256 283 700 Gas Transmission System: km 11 601 1 900 Gas Distribution Network: km 52 404 720 Electricity customers (thousand) 6 803  182 Gas customers (thousand) 3 095 6 6

Challenges and context for RE developement in Algeria Development of alternative energy sources Environmental issues (Climate Changes, ...) and sustainable development Development of clean renewable energy industry Availability of an important solar potential Challenges Safeguarding of fossil resources and electricity production diversification Renewable Energy Development and Environmental Protection Diversification of the national economy and creation of a new socio-economic dynamics through out the Renewable Energy, Acquisition of scientific and technical knowladge Establishment of an efficient and sustainable industry, Actor in the world market of the renewable energy 7

Targets for the renewable energy development Ambitious target to raise Algeria at the rank of major actor in solar energy industry : It is expected that about 40% of electricity produced for domestic consumption will be from renewable energy sources by 2030. - Implantation of renewable energy industries with a progressive national integration. Development of solar energy (PV and CSP), wind and geothermal, Technology acquisition through the pilot projects and a looking of strategic partnership The local manufacturing of equipment with a progressive industrial integration Partnership between University and companies (for valuation of research results) Accompaniment and support by a regulatory framework and appropriate incentives.

Legal framework for RE developement in Algeria The law n°99-09 of July 28th, 1999 relative to the energy control; (creation the National Fund for Energy Efficiency: NFEE) The law n°02-01 of February 5th, 2002, relative to the electricity and the public distribution gas by pipes; The law n°04-09 of August 14th, 2004, relative to the promotion of the renewable energies in the framework of the sustainable development. The orientation law on scientific research and technological development ,devoting as “PRIORITY“, the national research program on Renewable Energy The finance Act 2010 (creation of National Fund for Renewable Energy : NFRE)

Renewable energy potential in Algeria Solar potential of about 170 000 TWh / year, is 4000 times the current electricity generation of Algeria The solar Potential by regions appears as follows Regions Coastal highlands Sahara Area (%) 4 10 86 Average duration of sunshine (hours / year) 2650 3000 3500 Average energy received (kWh/m2/year) 1700 1900

Renewable energy potential in Algeria Wind potentiel: Moderate wind conditions (2-8 m / s). Sites in the most important potential : - Adrar (Southwest) In Amenas (Southeast)

Renewable energy potential in Algeria Geothermal potential More than two hundred (200) warm sources are inventoried in the North of the Country. Approximatively A third (33 %) among it has temperatures superior than 45°C. There are sources with high temperatures which can achieve 118°C in Biskra. Hydraulics 103 dam sites are identified. More than 50 dams are in operation.

Renewable Energy Projects and experiences 20 villages in the South of country are supllied by photovoltaic, about 1000 homes distributed on wilayas 04 (900 kWc) Wilaya Tindouf 3 Villages Wilaya Illizi 6 Villages Wilaya Adrar 2 Villages Wilaya Tamanrasset 9 Villages From this operation we get informed about: keeping the material in desert areas  the adaptation of the service giving management and maintenance optimizing technical - economic systems

Algerian experience in renewable energy (CSP) Solar-gas Hybrid power plant from Hassi R'Mel Power: 150 MW Solar part: 25 MW Technology: Cylindrical-parabolic Date of start: May, 2011 Pilot project to test solar technology and its power generation.

Renewable energy projects in progress Wind farm project (10 MW) in Adrar (south of Algeria) Electrification of 16 villages with PV kit (5MW) as part of national program of rural electrification PV pilot plant with the differents technologies: silicon, thin film, CPV (Capacity: 900kWc) Photovoltaic module manufacturing plant project with a capacity equivalent to 116 MWp/year (2013)

Algerian renewable energy program Main technologies used Photovoltaic Mono-cristalin Poly – cristalin Thin film Amorphe Concentrated PV Solar thermal Cylindrical-parabolic solar tower Fresnel Reflector Wind

Algerian renewable energy program National needs (12 000 MW) Concerning national needs, the capacities to be installed are as follows: 2011 - 2013 : 110 MW 2014 - 2015 : + 540 MW 2016 - 2020 : + 1 950 MW 2021 - 2030 : + 9 400 MW Total of 12 000 MW to be installed between 2011 and 2030

Algerian renewable energy program Cumulated power capacity (MW) to install (by technology)

Impacts associated with the renewable energy development in Algeria Gas Saving Volume of saved gas in 2011-2020: 10 Gm3 Volume of saved gas in 2011-2030: 73 Gm3 Volume of saved gas for the installed capacity in 2020 over 25 years: 60 Gm3 Volume of saved gas for installed capacity in 2030 (12000MW) over 25 years: 280 Gm3 Total volume of saved gas by the RE program (including exports): 570Gm3 Job opportunities created 120 000 direct jobs generated from the renewable energy program

CONCLUSION The program for renewable electricity generation, which aims to install 12,000 MW by 2030 with an integration rate of 40% renewable energy in national electricity balance in 2030. The program covers two (02) phases: 2011-2020, achievements of 67 projects, with a total capacity of 2600 MW (54 small projects in photovoltaic, 6 big projects in CSP and 7 small projects in wind energy). 2021-2030, installation of 9400 MW of renewable electricity generation. The global cost of the renewable electricity program for the national market is about 60 billion US dollars. Volumes of saved natural gas for the period of renewable power plants operation to be installed over the period of 2011 and 2030, reach to 282 billion m3. Considering its impact on the national economy, the achievement of the program will require government support in terms of facilitating collecting of necessary funds and the compensation of additional costs resulting from the introduction of renewable energies in the National Electric system.

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