Measures to Promote Renewable Energy for Electricity Generation in Algeria

Abstract

Algeria has enormous renewable energy potential. However, fossil fuels remain the main electricity generation source, and the country is the third largest CO2 emitter in Africa. Algeria is also particularly vulnerable to climate change. Therefore, a set of actions related to energy, forests, industry and waste sectors have been programmed, over the period 2015–2030, and the government action program has given priority to promote renewable energy. In this sense, Algeria is committed to significantly promote investment in renewable energy, during the period 2020–2030. Thus by 2030, renewable electricity production capacity will achieve 22,000 MW, representing 27% of total electricity generation. This paper analyzes the electricity generation measures implemented in Algeria to reach the required energy mix, the legislative framework, financial aid, the feed-in tariff system, the tax incentives, and the tender and auctions undertaken. The analyses reveal that, although the electricity price premium policy has not been revoked, the newly enacted tender scheme is designed to become the standard procedure for launching renewable energy projects in Algeria in the coming years.