Algeria Tariffs

Algeria is the largest country in Africa, and the tenth largest in the world. Its renewable energy program consists of installing up to 22,000MW of power generating capacity by 2030, of which 12,000MW is expected to meet domestic electricity demand and 10,000MW to be exported. The government intends for 40% of domestic energy to come from renewable by 2030.

Updates

Update May 01, 2014

Algeria has launched a feed-in tariff (FiT) for large-scale PV power plants to support its goal of building 800MW of solar capacity by 2020.

The North African country will offer two different FiT rates – one for plants of between 1 and 5MW, another for over 5MW.

The FiTs will be available under 20-year power purchase agreements, although different rates will be paid for the final 15 years of the agreement. A limit has been set on the number of generating hours eligible for FiT payments.

For plants of 1-5MW, the FiT has been set at reference rate of US$0.20/kWh for up to 1,500-1,574kWh per year for the first five years. Over the following 15 years, payments will vary depending on plant outputs, with those generating above the reference quota receiving less and those generating less receiving higher rates.

For plants over 5MW, a similar system will apply: a reference rate of US$0.16/kWh will be paid to plants generating 1,500-1,574kWh per year for the first five years; thereafter that rate will fall or increase for plants producing respectively more or less than the reference output. 

Algeria has a national programme targeting 22,000MW of renewable energy capacity from 2030, and has a stated aim of becoming leading player in solar power.

The launch of the FiT coincides with the initial deployment phase of this programme, which is expected to run from 2014-2015.

After this, between 2016 and 2020, the programme is scheduled to enter a ‘large-scale’ deployment phase, during which the Algerian government hopes to build 800MW of PV generation capacity.

Update Apr 01, 2012

Algeria is the largest country in Africa, and the tenth largest in the world. Its renewable energy program consists of installing up to 22,000MW of power generating capacity by 2030, of which 12,000MW is expected to meet domestic electricity demand and 10,000MW to be exported. The government intends for 40% of domestic energy to come from renewable by 2030.

With increased domestic consumption and no large-scale renewable energy projects in place, it is estimated that Algeria will lose its status as a natural gas exporter within the next 20 years.

Algeria’s Ministry of Energy and Mines (MoEM) states that “the biggest potential in Algeria is for solar”. This is especially in the Sahara region and these data are broadly confirmed by the World Energy Council. Annual average insolation is rated at 2,000 hours with the high plateaus receiving about 3,900 hours. This gives an average solar energy of 6.57 kWh/m2/day. Hybrid combined-cycle gas/solar plants are being developed in the country.

Projects to be implemented for the domestic production of electricity from renewables are three-fold:

1. 2011-2013: devoted to the achievement of pilot projects to test the different available technologies.
2. 2014-2015: deployment of the program to commence.
3. 2016-2020: deployment of the program to be completed on a larger scale.