Renewable Energy and Energy Efficiency Development Plan 2011-2030
The National Renewable Energy and Energy Efficiency Development Plan in its 2015-2030 version (as updated on 24 February 2015) continues to expand usage of renewable energies and to diversify the country’s energy mix.
The Plan sets the new target for installed renewable capacity to 22 GW by 2030 (originally 12 GW), with the first 4.5 GW to be commissioned by 2020. Domestic demand is to be mainly satisfied through solar PV (13.5 GW), wind (5 GW) and concentrated solar power (2 GW), as well as biomass (1 GW), CHP (400 MW) and geothermal (15 MW). The Plan also targets up to 10 GW of installed renewable capacity for export. These new targets should allow Algeria to cover 27% of its power demand with renewables by 2020.
To support the development of renewables, the National Fund for Renewable Energies and CHP (FNERC) was created, funded primarily by a 1 per cent part of the oil tax. The Plan introduces a PPA scheme with 20-year feed-in tariffs for solar PV and wind power. Base tariffs will range between 12.75 – 15.94 DZD/kWh (around 0.12 – 0.15 USD/kWh) for solar PV projects; and between 10.48 – 13.10 DZD/kWh (around 0.10 – 0.12 USD/kWh ) for wind power projects, depending on the installed capacity (1 – 5 MW or over). Other renewable sources are to benefit from FNERC investment grants of up to 90 per cent of the investment cost.
In addition to promotion of renewables, the Plan aims to increase energy efficiency through a number of avenues:
- improvement of heat insulation of buildings;
- development of solar water heating; promotion of co-generation;
- developing solar cooling systems;
- converting simply cycle power plants to combined cycle power plants, where possible;
- desalinating brackish water using renewable energy;
- substituting all mercury lamps with sodium lamps and promoting the use of low-energy lamps.
