Algeria is hoping to increase its renewable energy status by generating as much electricity from green sources as it currently produces from its natural gas power plants by 2020.
The government is planning to debut a new renewable energy development plan, according to the country’s Energy Minister Youcef Yousfi. He said, “It’s a huge program and a huge challenge. The government will work alongside and assist operators in its implementation.”
Algeria is one of Africa’s big five hydrocarbon producers, and while its output in the sector is significant, the country has signed a number of bilateral agreements in the alternative energy sector with France, the US, Brazil, Russia, China, and Germany. The country’s medium-term plan includes generating 6% of its total energy mix from renewable energy sources by 2015. Although Algeria has begun a few initiatives to promote sustainable energy, generating as much energy from renewable energy as its current production of natural gas is a pipedream.
The North African country produced 86.4 Bcm per day in 2009 with 26.83 Bcm going for local consumption. In 2003, Algeria generated 26.9 billion kilowatt hours of electricity with conventional thermal sources – including natural gas accounting for 99% of the country’s electricity supply. Not much changed in 2009, according to Market Research. The dominant fuel in 2009 was natural gas, accounting for an estimated 61.7% of the primary energy demand. This was followed by oil at 36.2%, and coal at 1.8%.
Algeria wants to safeguard its position as a European energy supplier and future provider of clean energy; however, creating unreachable goals are not going to accomplish anything. In mid-August, President Abdelaziz Bouteflika announced plans to increase investment and exploration in the country’s energy sector. And while Algeria plans to invest $286 billion in its energy sector from 2010 to 2014, the President said the priority will remain on its hydrocarbon sector.
Algeria is one of the top 10 economies in Africa, but only because of its hydrocarbon sector. The country does have some renewable energy projects cropping up, but it fails to create an investor friendly environment. The Algerian government said it wants more participation from local firms for fear of foreigners exploiting resources, yet the country fails to offer local companies the tools necessary to play an integral role in the budding renewable energy industry (Special: AEA’s Investor Watch).