A legal framework of renewable energies and climate change in Algeria / Fateh serdouk


 

A legal framework of renewable energies and climate change in Algeria

Dr. Fateh serdouk, Echahid hamma Lakhdar University, el Oued / Algeria

د. فاتح سردوك، جامعة الشهيد حمة لخضر، الوادي/الجزائر

 

مداخلة نشرت في كتاب أعمال المؤتمر الدولي الخامس عشر لمركز جيل البحث العلمي حول أليات حماية البيئة، الذي نظم في طرابلس لبنان يومي 26 و27 ديسمبر 2017. ص 237.

حمل من هنا: كتاب أعمال المؤتمر الدولي

          ملخص:

         ان استراتيجية التخفيف من حدة تغير المناخ في الجزائر، تقوم اساسا على البرامج الوطنية للطاقة المتجددة والنجاعة الطاقوية. ومن هذا المنطلق فإننا نهدف من خلال هذه الدراسة إلى تحليل تطوير الإطار القانوني للطاقات المتجددة وبرامج كفاءة الطاقة، للحكومة الجزائرية، وأثرها في التخفيف من آثار تغير المناخ.

       كما نتطلع من خلال هذه الدراسة إلى مراجعة تطور الإطار الاستثماري الجزائري في مجال الطاقات المتجددة في ظل آخر تحديثاته لبرامج الطاقات المتجددة في عامي 2016 و2017، وخاصة بعد التحول الاستراتيجي في الطاقة المتجددة في الجزائر، من خلال اعتماد المرسوم التنفيذي رقم 17 -98 بتاريخ 26 فبراير 2017، الذي يحكم القواعد المطبقة على إطلاق نظام الصفقات لمشاريع الطاقة المتجددة.

 

Abstract:

       The Algeria’s mitigation strategy in term of climate change, it is based on the national programs for renewable energy and energy efficiency. We aim with this study to analyze the development of the legal framework for the renewable energies and energy efficiency programs, for the Algerian government, and their impact in mitigation of climate change.

          Moreover, we look to review the development in Algerian investments framework change in term of renewable energies, through its last updates of the renewable energies programs in 2016 and 2017, especially after Algeria’s Strategic Shift in Renewable Energy, by the apparition of the Executive Decree 17-98 dated 26 February 2017, which Governs the rules applicable to the launch of calls for tenders for renewable energy projects.

 

introduction

the study adopts the classic debate in this research concerning the renewable energies and climate change framework in Algeria, by analyzing the relative efficiency of the three types an instrument designed to stimulate the development of renewable energy and the adaptation of climate change conventions in Algeria. Firstly, we give a review of the legislative Framework of renewable energies and climate change in Algeria which established a policy objective, on the basis of the positive view, that legal framework governs the development in this context and animates the applications. secondly, the instruments of application are characterized in relation to the characteristics parameters of the sector of renewable energies and climate change adaptation, which need a regulatory framework from policies, measurement and financing schemes as well as other landmarks. Thirdly, the dynamic and static efficiency of the instruments are analyzed through Renewable Energy and Energy Efficiency د. فاتح سردوكDevelopment Plans in Algeria, where a real development of renewable energies is Clear and considered, for enhancing the climate change adaptation and mitigation.

Consequently, under this view, the paper calls to the following question: what is the contribution of the legal framework for the renewable energies and climate change in Algeria, to achieve its goals in the promotion for the role of renewable energies, to attaining conventions trends in climate change?

The hypothesis of the problematic study can be presented as follow: the enhancement of the legal framework for renewable energy and climate change in Algeria, through the regulatory framework that regulates plans, policies and funding schemes, promotes the development of the role of renewable energies in achieving the trends of Climate Change, through mitigations and adaptation to climate change conventions.

This paper is organized as follows:

  1. Legal framework and funds of the renewable energies in Algeria.
  2. Milestones regulatory framework of the renewable energies in Algeria.
  3. Milestones and legal framework of climate change in Algeria:

1                     Legal framework and funds of the renewable energies in Algeria.

For the milestones of the legal framework of renewable See Figure 1.

1.1                  Legislative framework of the renewable energies in Algeria.

Generally, the policy objectives for any sectorial development are ordered in law. in the line of this view, Algerian government has been paving the way for renewable energy development for some time by enacting specific legislative framework, to establishing a legal framework for the development of the renewable energy in Algeria.

Moreover, Algeria has implemented a financial scheme for the development of the renewable energy, through the establishment of the renewable

The legislative framework applicable to the renewable energy under the power sector in Algeria is developed through the main legal texts are:

  • Law No. 99-09 dated 28th July 1999 pertaining to energy control (management).
  • Law n ° 02-01 dated 05 /02/2002 related to electricity and gas distribution
  • Law No. 04-09 dated 14th August 2004, pertaining to promoting renewable energies under sustainable development.

1.1.1                Law No. 99-09 dated 28th July 1999 pertaining to energy control (management).

Establishes the framework and conditions for the National Programme for the Management of Energy, outlining parameters for: efficient consumption, energy saving/energy efficiency, the reduction of GHG emissions and general air pollution, the education of both government agencies and the populace regarding energy efficiency, and the development of renewable energy technologies and sources inclusive of solar, geothermal, hydropower, and biomass.

Authorizes the use of financial incentives for projects and investments in energy efficiency and renewable energy, in addition to establishing the parameters for the [1]

  • Energy efficient building standards.
  • A mandatory energy auditing system for industry, transport, and service sectors.
  • Sanctions for non-compliance.
  • Establishes a National Fund for Energy Management, supported by taxes on domestic energy consumption, state subsidies, and fines for non-compliance pursuant to this law.

1.1.2                Law n ° 02-01 dated 05 /02/2002 related on electricity and gas distribution.[2]

The law (N° 02-01 of 5 February 2002) takes into account the protection of the environment and provides for the integration of renewable energies in the energy mix of the country. Article 95 of this law provides that “the production of electricity from renewable energies benefits premiums and other measures to support the additional costs of transportation and distribution constitute the costs of diversification provided by law under the promotion of renewable energy”.

A decree entered into force March 25, 2004, on the costs of diversification of electricity production, establishes an incentive scheme for the production of electricity from renewable sources. All tax benefits are outlined in this decree.

A neglected part of law 02-01 is that this law did not separate from the export of energy produced from traditional sources and renewable sources of energy.

1.1.3                Law No. 04-09 dated 14th August 2004, pertaining to promoting renewable energies under sustainable development.

Builds on the general commitments outlined in Law No. 99-09 relative to the Management of Energy, laying the foundations for a requisite “national programme to support renewable energy within the context of sustainable development.” [3]

Moreover, Codifies Algeria’s environmental mission to promote the domestic development of renewable energy sources, to curb climate change by limiting GHG emissions, and to encourage sustainable development via the conservation and preservation of fossil fuel resources.

 Consistent with this mission, this law establishes a National Observatory/Centre for the Promotion of Renewable Energy. Furthermore, the establishment of this law Serves as the framework for the Ministry of Energy and Mines detailed Renewable Energy and Energy Efficiency Programme (2011-2030), released in March 2011, which establishes specific quantitative targets for renewables.[4]

1.2                  funds of the Renewable Energies in Algeria.

Algeria has been paving the way for renewable energy projects by establishing a public finance enhancement, through special funds to developing the energy management as well as the diversification of its energy sector to renewable energies. Especially with the public monopolistic in the energy sector investments.

From 1999 to the date of this study Algeria has created and merged through laws and executive decrees special funds, to financing renewable energies development and promotion, and giving a budget structure of the special accounts for those funds in term of financing resources and expenditure.

  • National Fund for Energy Management (NFEM) in 1999.
  • national fund for Renewable Energies (NFRE) in 2009.
  • National Fund for renewable energies and cogeneration (NFREC) in 2011.
  • National fund for the energy efficiency and for the renewable energies and cogeneration (NFEEREC) in 2016.[5]

1.2.1                National Fund for Energy Management (NFEM):

The NFEM fund was established by the law on energy management enacted in 1999, provides for the creation of a National Fund for Energy Management (NFEM) which helps to finance renewable energy projects. preparing to the implementation of the law on electricity and public distribution of gas by pipeline passed in 2002.

1.2.2                National fund for Renewable Energies (NFRE):

  The NFRE was established under the Law n° 09-09 dated 30th, December 2009, relating to the Finance law for 2010, in particular, Article 63 creating the national fund for Renewable Energies, which create A Special Assignment Account No. 302-131 entitled “National Fund for Renewable Energies” opened in the Treasury.[6]

The records of the special account No. 302-131 for the NFRE was detailed as below:

  • In the recipes: 0.5% of the petroleum revenues and any other resources or contributions.
  • In the expenses: the contribution to the financing of operations and projects within the framework of the promotion of renewable energies. The authorizing of this account is the minister responsible for energy.

Furthermore, in the same national context to enhancing the energy efficiency and development of renewable energy, the National Energy Efficiency Program (NEEP) was implemented in 2000.[7], to finance energy efficiency investments of the National Energy Efficiency Agency (APRUE) and its projects under the National Energy Efficiency Program (NEEP). the annual budget is 57 million AD. The resources of the funds include taxes per dinar on natural gas (0.00015/btu) and electricity (0.02/kWh), as well as an initial government contribution of 100 million Algerian dinars (1.15 million dollars). and Additional resources which may include taxes on energy-intensive equipment, penalties, loan repayments, government, and other contributions. [8]

1.2.3                National Fund for renewable energies and cogeneration (NFREC):

      Established by the Law No. 11-11 of 18 July 2011 on the Supplementary Finance Law for 2011, particularly, Article 40, which amending Article 63 of law 09-09.

The records of the Account No. 302-131 entitled “National Fund for Renewable Energies and cogeneration” have changed below: [9]

  • In recipes:  1% of the oil revenues.
  • In the expenses: The contribution to the financing of actions and projects in the framework of the promotion of Renewable energy and cogeneration.

Moreover, after the establishment of the National Fund for renewable energies and cogeneration (NFREC), Algeria has implemented a regulatory framework to give landmarks and policies of the management of this fund, through executive decrees and ministerial orders, as below:

  • Executive Decree No. 11-423 dated 08th, December 2011, that sets terms and conditions for the running of earmarked account No. 302-131 with the title “National Funds for renewable energies and cogeneration “. [10] Amends the operating procedures of the National Fund for Renewable Energy and Cogeneration, first established pursuant to the Finance Act of 2010, to increase the revenue paid into this fund from 0.5% of petroleum revenues to 1% of petroleum revenues, plus any additional contributions. Grants authority to the Minister of Finance to jointly manage expenditures from this fund with the Minister of Energy for the purposes of financing operations and projects for the promotion of renewable energy and cogeneration.
  • The Ministerial Order dated 28 October 2012, on Setting out the modalities for the monitoring and evaluation of appropriation account No. 302-131 entitled “National Fund for Renewable Energy and Cogeneration”. [11]
  • Ministerial order dated 28 October 2012, determining the nomenclature of income and expenditure imputable to Special Account No. 302-131 entitled “National Fund for Renewable Energies and Cogeneration. [12]
  • The Ministerial Order dated 28 October 2012, completed The Executive Decree dated 8 December 2011, and provides that the FIT for renewables financed by:
  • 1% tax levy on the state’s oil revenues.
  • Any other resources or contribution.

1.2.4                National fund for the energy efficiency and for the renewable energies and cogeneration (NFEEREC):

The (NFEEREC), was firstly established by the Law No. 14-10 of 30 December 2014 wearing the Finance law for 2015.  As provides in the Article 108, for the merger of the two Special Funds, first, The National Fund for Energy saving and second the National Fund for Renewable Energy and cogeneration. And next implemented with the Executive Decree No. 16-121 of 6 April 2016 “amended and completed”. [13]

Furthermore, the executive decree Executive Decree No. 16-121 determines the modalities for the operation of the special account No. 302-131 entitled “National fund for the saving energy and for the renewable energies and cogeneration”.

The records of the Account No. 302-131 affected to the fund, traces some changes in this decree Can be explained as follows:

  • In recipes: Line 1: “Renewable energies and cogeneration”: 1% of the oil revenues and all other taxes fixed by the legislation, and any other resources or contributions.

Line 2: “Energy Control”: State subsidies; the product of the national consumption tax on energy; Product taxes on high energy consuming devices; the fines provided under the law the mastery of Energy; the unpaid loan repayment product made under the mastery of energy; any other resources or contributions.

  • Expenditure: Line 1: “Renewable energies and cogeneration”: allocations for the financing of actions and projects included in the promotion of renewable energies and cogeneration; the allocations for the pre-financing interred in the promotion of renewable energies and cogeneration. Line 2: Energy control: financing of actions and projects included in the program for energy saving; the granting of unpaid loans made to holder’s energy efficiency investments and non-enrolled in the program for the energy saving; providing guarantees for borrowing nearby banks or financial institutions; the allocations for the pre-financing of the acquisition of related apparatus and equipment energy efficiency.
  • Milestones regulatory framework of the renewable energies in Algeria.
    • The Feed-In Tariffs (FiTs):

Another mechanism that was established to speed up the adoption of renewable energy sources. Namely, fit feed-in tariff scheme. The Feed-In Tariffs (FiTs), can be defined as Tariff-based incentives that result in favorable tariff payments to the entity providing electricity.

The electricity price is generally designed to promote investments in renewable energy, by guaranteeing investors a revenue stream that covers costs and a return on capital sufficient to motivate investment.

The Fit can be uniform or differential across technologies for a fixed period of time (and can include escalator or de-escalator clauses).

The feed-in tariff purchase prices are usually based on the cost of renewable energy generation paired with considerations as to social cost, investor requirements and policy targets. With a Fit, any customer or entity is normally eligible to sell energy under the terms of the tariffs.

Moreover, the regulatory framework of the feed-in tariffs scheme governs by the executive decrees and ministerial orders as below:

  • The Algerian government established a FIT scheme by the executive decree, No.04-92 of March 2004,[14] after power shortages and rationing of electricity in mid-2003. The target of the decree is diversification of electricity generation by using renewable energies and cogeneration. When published in 2004 Algeria was the first African country that had introduced a FIT-scheme.[15]
  • The Ministerial Order dated 28 October 2012, completed The Executive Decree dated 8 December 2011, and provides that the FIT for renewables financed by 1 % tax levy on the state’s oil revenues and any other resources or contribution. [16]
  • The Fit Application Executive Decree dated 18 June 2013 set out the administrative process and conditions for benefiting from the Fit, moreover, the decree gives a list of eligible projects based on their technical characteristics and installed power capacity.[17]
  • The Ministerial Tariff Orders for solar PV and wind dated 2 February 2014 but published in the Journal Official only on 23 April 2014. on fixing the guaranteed purchase tariffs and the conditions of their application for the electricity produced from installations using the solar photovoltaic and wind. [18] [19] The two ministerial orders have been enacted based on the Fit Application Executive Decree 2013 and provide the Fit level applicable to solar PV and wind farms installations.

For instance, the feed-in tariff for solar PV installations applicable to the renewable energy now, as created on 23rd of April 2014, Algeria adopted feed-in tariff scheme for the solar PV installations. the goal of the programme is to support Algeria in achieving its renewable energy capacity targets. Moreover, the tariff is differentiated for the size of the plant, And The payments are divided into two phases. The tariff level for the Phase one is set flat. And The payments in the Phase two are determined by the number of equivalent hours of annual operation. However, only plants with a capacity equivalent or larger than 1 MW can benefit from the FIT programme. The feed-in tariff phases are as in table 1.

Table 1: The feed-in tariff phases in Algeria.

Phases hours of annual operation Feed-in tariff levels in DZD/kWh per plant size
1 MW – 5 MW > 5 MW
Phase I - 15.94/kWh ($202/MWh) 12.75/kWh ($ 162/MWh)
Phase II 1275-1349 20.08/kWh ($255/MWh) 16.06/kWh ($204/MWh)
1350-1424 18.83/kWh ($239/MWh) 15.06/kWh ($191/MWh)
1425-1499 17.45/kWh ($222/MWh) 13.96/kWh ($177/MWh)
1500-1574 15.94/kWh ($202/MWh) 12.75/kWh ($162/MWh)
1575-1649 14.43/kWh ($183/MWh) 11.54/kWh ($147/MWh)
1575-1649 13.06/kWh ($166/MWh) 10.44/kWh ($133/MWh)
 ≥1725 11.80/kWh ($150/MWh) 9.44/kWh ($120/MWh)

Source: the International Energy Agency.  http://www.iea.org. Accessed on October 2017.

  • the certificate of guaranteed origin.

the certificate of guaranteed origin is a pre-condition to benefit from the Fit under the power purchase agreements (PPA), it was published on 2015 and classified as financing scheme for renewable energy in Algeria.[20]

The Executive Decree for the certificate of guaranteed origin was published on 18 February 2015 and provides key information for the IPP. Moreover, giving out both the administrative modalities for the application, instruction and granting a certificate, and the devices and inspection requirements to be borne by the IPP. The certificate of guaranteed origin can be modified, suspended and withdrawn by the Electricity and Gas Regulatory Commission (CREG). As the certificate of guaranteed origin shall not be published, it shall not be challenged before the administrative court by a third-party.[21]

The certificate of guaranteed origin is a key permit in renewable project development as it constitutes one of the first authorizations to be obtained in order to apply for the PPA to be implemented with existing FiTs.

  • The power purchase agreement (PPA).

As a part of the context of financing schemes of renewable energies, we can take the concept of PPA as a system providing the potential solution to these cost challenges is a model in which a third-party owner uses a power purchase agreement (PPA) to finance an on-site PV Solar system. As well as allows a developer to build and own a PV solar system on the customer’s property and sell the power back to the customer.

 In addition, the third-party PPA model enables the customer to support solar power while avoiding most or all initial costs as well as responsibilities for operations and maintenance, both of which typically transfer to the developer. these advantages appeal to owners of residential and commercial buildings who would like to obtain solar PV systems.

The PPA scheme in Algeria will be executed for 20 years as from the commissioning date of the plant. However, this initial 20-year term can be reduced if the commissioning date of the plant occurs more than six months after the expected commissioning date indicated in the PPA, as a result of the independent power producers (IPP) action or inaction. The PPA duration should be then reduced proportionally to the delay.[22]

The independent power producers (IPP), was regulated by three executive decrees:

  • Executive Decree 06-429 dated 26 November 2006: Governs the rules applicable to IPPs benefiting from an Operating Authorization.
  • Executive Decree 06-428 dated 26 November 2006: Governs the rules applicable to IPPs benefiting from the special regime.
  • Executive Decree 13-218 dated 18 June 2013: Governs the tariffs and the power purchase agreements with an IPP

The PPA scheme is generally animated under the PPP framework of the country, as well as governed by a regulatory framework (executive decrees, ministerial orders, and instructions). For instance, In the case of Algeria, the public-private partnerships (PPP), are governed by Law and other applicable texts as below: [23]

- Presidential Decree No. 15-247 dated September 16, 2015, on the regulation of public contracts and public service delegations.

- Law No. 99-09 of 28 July 1999 on the energy management.

- Law No. 02-01 of 5 February 2002 on electricity and public distribution of gas by pipelines.

- Law No. 04-09 of 14 August 2004 on the promotion of renewable energy in the context of sustainable development.

- Executive Decree No. 13-424 of 18 December 2013: amending and supplementing Executive Decree No. 05-495 of 26 December 2005 on the energy audit of energy intensive institutions.

- Ministerial Orders of 2 February 2014: fixing the feed-in tariffs for electricity production from plants using photovoltaics and conditions for their application.[24]

- Ministerial Orders of 2 February 2014: fixing the feed-in tariffs for electricity production from plants using wind power and the condition.[25]

2.4                  The tendering scheme for renewable energies in Algeria:

As a new financial scheme to enhance renewable energy investments. Governs with the Executive Decree No. 17-98 of 26 February 2017, which defines the tendering procedure for the production of renewable or cogenerated energies and their integration in the national system of electricity supply. Generally, the executive decree 17-98 governs the rules applicable to the launch of calls for tenders for renewable energy projects.[26]

After the implementation of the executive decree in February 2017, The Algerian government is set to launch a tender for the construction of large-scale PV projects totaling 4 GW. The tender will be held in three 1,350 MW phases and will select projects with an average capacity of 100 MW.

The Projects selected in the tender will be owned and developed by special purpose companies, which will be responsible for financing, EPC works, grid-connection and the sale of power. These vehicles will be owned 51% by a domestic investor and 49% by an international partner. Government-owned namely Sonatrach will hold a 40% stake in all of these companies, while Sonelgaz and other public or private Algerian companies will hold the remaining 11%. For Algerian private investors the participation in the capital of each company will not exceed 6%. Financing for each project must be provided 30% with own funds and 70% with bank loans.[27]

Furthermore, an appeared problem for tendering scheme in Algeria is that the details and policies are always delayed. details, has never been published. According to local press agency APS. the newly appointed minister of environment and renewable energy Fatma Zohra Zerouat has now revealed that an ad hoc committee for the tender will be created, and that its final review will be published together with her new action plan for the development of renewable energies, without providing a specific time frame. [28]

  • Milestones and legal framework of climate change in Algeria:

Since the energy sector contributes most to the CO2 emissions of a country, renewable energy is the key driver for the transition to a sustainable world. Shifting energy production to renewables is also the most promising strategy for decoupling economic development from CO2 emissions.

  • legislative framework of the climate change in Algeria:

The legislative framework of climate change in Algeria regulated thought the four laws which generally focused on the promotion of renewable energies under the climate change adaptation.

The Law establishes the legal framework for disaster prevention and disaster risk management in Algeria. This Law is not limited to climate change-related risks, but explicitly includes climatic risks, and climate related areas (notably flooding and forest fires), in addition to other non-climate related disasters.

  • Law 99-09 relative to the Management of Energy (1999): As the first law establishing the framework and conditions for the National Program for the Management of Energy, outlining parameters for: efficient consumption, energy conservation/energy efficiency, the reduction of GHG emissions and general air pollution, the education of both government agencies and the populace regarding energy efficiency, and the development of renewable energy technologies and sources inclusive of solar.
    • landmarks of Climate Change in Algeria

Referring to the 5th IPCC report (WG1 and WG2), the North African region was the most impacted region by the effect of Climate Change., With this in mind Algeria included the environmental dimension in its economic development process and start up an ambitious program of developing sustainable energy and energy efficiency that aims to provide the energy mix 40% of renewable energy by 2030. It signed up to the UNFCCC as a non-Annex Party in 1993 and ratified the Kyoto Protocol in 2004, stating publicly its willingness to take part in the international effort to mitigating climate change and its potential effects, particularly on the climatic system, the natural ecosystems and the durability of the economic development.

Within the framework of these adaptation measures, Algeria has been progressively integrating through all the socio-economic sectors and institutions of the country, the context related to climate change mitigation.

The Algerian Climate Change Strategy consists in the establishment of the legal and institutional framework as well as the institutional capacities, sensitizing and educating the public by a participative approach.[29]

Algeria as a part of CCPI countries has ratified the Paris Agreement, which was achieved on October 5, 2016. and helped bring the Paris Agreement into force in November 9, 2016.[30]

Renewable energy taking the lead in investments in the transition from a fossil fuel based energy supply to renewable energy, the CCPI has documented promising tendencies in the past, and signals continue to be positive. Almost all index countries maintain double-digit growth rates and only three countries show a slightly negative tendency including Algeria.[31]

The Intended Nationally Determined Contributions (INDCs) is a crucial element of the Paris Agreement. They are the foundation on which the success of global mitigation efforts will be built. Scientific assessments concluded that current INDCs are an important contribution, but still fall short of reaching the long-term goal adopted with the Paris Agreement of “Holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels…” by the end of the century (UNFCCC 2015a: Article 2). The available assessments vary in their results – depending on the underlying models the assessments deployed. Even the evaluation by Climate Action Tracker – the most optimistic assessment – on the basis of 156 INDCs submitted by December 7th, 2015 only sees the world on track for 2.7°C of warming by the end of the century. Hence it is clear, that current INDCs can only be the first step and that a substantial ratcheting up has to take place.[32]

It’s very important to determinate the significant domestic and international benefits that can be realized through the development and implementation of an INDC. Collectively, INDCs offer an opportunity to set the world on track toward the 2°C goal. Developing and implementing INDCs can demonstrate political commitment and help realize non-climate benefits associated with mitigating climate change. INDC preparation and implementation can also strengthen institutional and technical capacity, enhance policy integration, and inform key stakeholders.[33]

In general, a mitigation contribution can take the form of actions, outcomes (GHG or non-GHG outcomes), or a combination of actions and outcomes.

 Moreover, Actions are an intention to implement specific means, such as policies or projects, of achieving GHG reductions. As Outcomes are an intention to achieve a specific result, for example, to reduce GHG emissions to a specific level (a GHG outcome) or increase energy efficiency to a specific level (a non-GHG outcome).

See Figure 2 for a representation of types of mitigation contributions.[34]

Figure 2: types of mitigation contributions by INDC

Source: Levin et al. 2015, Designing and Preparing Intended Nationally Determined Contributions (INDCs), Washington, DC: WRI and UNDP.

  • Algeria Intended Nationally Determined Contributions (INDCs):

       Algeria as a member of CCPI has ratified the Paris Agreement, which was achieved on October 5, 2016. and helped bring the Paris Agreement into force in November 9, 2016.[35]

As well as submitted its Intended Nationally Determined Contributions (INDCs) as an element of the Paris Agreement. They are the foundation on which the success of global mitigation efforts will be built.

      In global trends, Algeria adaptation and mitigation strategy in climate change under convention framework, covers mainly energy, forests, housing, transport, industry and waste sectors. It is based on the national programs for renewable energy and energy efficiency. This reflects its willingness to pursue its efforts in combating the adverse impacts of climate change. Such programs shall be pursued and sustained so long as Algeria benefits from international support in terms of new and external financial resources, and technology transfer, and capacity building. Algeria’s contribution in mitigation is based on the three most important greenhouse gases: carbon dioxide gas (CO2), methane (CH4) and nitrous oxide (N2O). At the meeting held on May 24th, 2015, adopted the new national programs for renewable energy and energy efficiency. These ambitious programs aimed at reducing by 9% the global consumption of energy by 2030. It aims to engage thermal insulation of an important housing program, as well as to convert to LPG a million of light-duty vehicles and more than 20.000 buses. 6 By 2030, it aspires to the deployment, on a large scale, of photovoltaic and wind power as well as thermal solar energy, and the integration of cogeneration, biomass, and geothermal energy. This program ultimately aims to reach the target that 27% of the electricity produced nationally is derived from renewable sources of energy. In fact, Algeria, being the largest country in Africa, in the Mediterranean and in the Arab world, has one of the highest solar deposits in the world, estimated to exceed five billion GWh/yr. The annual sunshine duration is estimated to be around 2 500 hours on average and could exceed 3 600 hours in some parts of the country. In addition to its 200 thermal cities, Algeria, the tenth largest country in the world, has a geothermal reservoir composed of Albian groundwater, which extends over 700 000 km.²  The action plan of the government aspires also to reduce gas flaring to less than 1%, by 2030. Regarding methane emissions reduction, Algeria intends to give priority to the management of household solid waste, with the objective to achieve, by 2030, a full coverage of wastes dumps in its territory. Regarding carbon capture, the country aims to accelerate and intensify its National Reforestation Plan with a global objective of reforestation of 1245000 ha.

Algeria’s mitigation strategy under climate change convention. It’s particularly based on the national programs for renewable energy and energy efficiency. Launched in 2011 and updated in 2015, This reflects its willingness to pursue its efforts in combating the adverse impacts of climate change. Such programs shall be pursued and sustained so long as Algeria benefits from international support in terms of new and external financial resources, and technology transfer, and capacity building.

Conclusion:

Algeria will lose its status as a natural gas exporter by the mid-2030s if the energy domestic consumption increases and no alternative energy solutions are implemented on a large scale. This scenario implies development problems for Algeria, which is fiscally highly dependent on fossil fuel exports. With this in mind, Algeria may take new approach to give the promotion to the generation of electricity from renewable energies, not only as a part of climate change adaptation but also as national strategy to promote sustainable development and for the transition to a green economy.

Given The geographic location of Algeria means it has the potential to play an important strategic role in the implementation of renewable energy technology in the north of Africa, providing sufficient energy for its own needs and even exporting it to countries as far as Europe. A report by the International Energy Agency’s (IEA) in 2014, suggests countries such as Algeria could one-day export solar energy to markets in Europe, as it becomes connected to European energy networks. The report also says that within 20 years solar power could provide the same amount of electricity as 72 coal-fired power stations. This is enough to supply 100 million people, or the combined populations of Algeria, Morocco, Tunisia, and Libya.

While the Algerian government has demonstrated its commitment to reforming the heavy regulatory framework, much remains to be done to incentivize investors and attract them to both oil and gas, as well as renewable energies. Such efforts include further liberalization of the renewables sector, developing clearer regulations for independent power productions (IPP) and reducing red tape to prevent costly project delays. to attempt reducing the impact for the global downturn in oil prices and maintain the economic growth, Algeria has given the priority to boosting hydrocarbons production to make up for lower prices and facing up the increase on energy domestic consumption. Making the market attractive to foreign investors is a fundamental key to promote production, as are measures to ensure energy consumption from renewables, given that two-thirds of the country territory still unexplored as well as the EU export market potentials.

Above all Algeria should make its development strategy in energy through the combination of the promotion of renewable energy and the adaptation to the conventions framework of climate change, as well as to enhancing its climate investments with a legal and regulatory framework attracting private investors. Moreover, Benefiting from the international financing in the term of renewable energies and climate change.

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[1] Law n ° 99-09 of 28 July 1999 on the control of energy, p.3. (No. JORA: 051 of 02-08-1999). Ministry of energy Algeria. http://www.energy.gov.dz/ accessed October 2017.

[2] Law n ° 02-01 dated 05 /02/2002 on Electricity and Gas distribution by pipes, p.4. (No. JORA: 08 of 06-02-2002).

[3] Law n ° 04-09 of 30 Dec 2009 on the promotion of renewable energies in the context of sustainable development, p.21. (No. JORA: 52 of 18-08-2004).

[4] www.cder.dz accessed October 2017.

[5] Executive Decree n ° 16-121 of 06 Apr 2016 on the modalities for the operation of the special account No. 302-131 entitled “National fund for the saving energy and for the renewable energies and cogeneration”, p.7. (No. JORA: 22 of 06-04-2016).

[6] Law n ° 09-09 of 30 Dec 2009 on the Finance law for 2010, p.21. (No. JORA: 08 of 14-12-2011).

[7] Executive Decree no. 2000-116. From  https://www.reeep.org/algeria-2012. accessed October 2017.

[8] Law n ° 11-11 of 30 Dec 2011 on the Supplementary Finance Law for 2011, p.11-12. (No. JORA: 78 of 31-12-2009).

[9] Idem.

[10] Executive Decree n ° 11-423 of 08 Dec 2011 on terms and conditions for the running of earmarked account No.302-131, p.18. (No. JORA: 068 of 14-12-2011),

[11] Ministerial order dated 28 October 2012 on Setting out the modalities for the monitoring and evaluation of appropriation account No. 302-131, p33, (No. JORA: 22 of 25-10-2013).

[12] Ministerial order dated 28 October 2012 on determining the nomenclature of income and expenditure imputable to Special Account No. 302-131, p32, (No. JORA: 22 of 25-10-2013).

[13] Decree n ° 16-121 of 06 Apr 2016 on the modalities for the operation of the special account No. 302-131 entitled “National fund for the saving energy and for the renewable energies and cogeneration”, p.7. (No. JORA: 22 of 06-04-2016).

[14] Executive decree n ° 04-92 of 14 August 2004 on the Renewable Energy Promotion in the Framework of Sustainable Development, p.8. (No. JORA: 052 of 18-09-2004). Ministry of energy Algeria. http://www.energy.gov.dz/ accessed December 2016.http://www.energy.gov.dz/ accessed December 2016.

[15] M Meyer-Renschhausen: Evaluation of feed-in tariff-schemes in African countries, Journal of Energy in Southern Africa, Vol 24 No 1, Cape Town, February. 2013, p56-66.

[16] Ministerial order dated 28 October 2012 on determining the nomenclature of income and expenditure imputable to Special Account No. 302-131, p32, (No. JORA: 22 of 25-10-2013).

[17] Executive Decree n ° 13-218 of 18 Jun 2013 in terms of granting allowances under costs for power generation diversification, p.9. (No. JORA: 33 of 26-06-2013).

[18] Ministerial order dated of 23 April 2014 on fixing the guaranteed purchase tariffs and the conditions of their application for the electricity produced from installations using the wind turbine, p23, (No. JORA: 23 of 23-04-2014).

[19]   Ministerial order dated of 23 April 2014 on fixing the guaranteed purchase tariffs and the conditions of their application for the electricity produced from installations using the solar photovoltaic, p25, (No. JORA: 23 of 23-04-2014).

[20] Executive Decree n ° 15-69 of 11 Feb 2015 on laying down the procedures for the certification of the origin of the renewable energy, p.9. (No. JORA: 09 of 18-02-2015).

[21] the Electricity and Gas Regulatory Commission (CREG).  www.creg.gov.dz. accessed October 2017.

[22] Idem.

[23]  The PPPIRC public-private-partnership in infrastructure resource center. Available online pdf:  https://ppp.worldbank.org/public-private-partnership/. Accessed October 2017.

[24] Ministerial order dated of 02 February 2014 on fixing the guaranteed purchase tariffs and the conditions of their application for the electricity produced from installations using the solar photovoltaic, p25, (No. JORA: 23 of 23-04-2014).

[25] Ministerial order dated of 02 February 2014 on fixing the guaranteed purchase tariffs and the conditions of their application for the electricity produced from installations using the wind power, p25, (No. JORA: 23 of 23-04-2014).

[26] Executive Decree n ° 17-98 of 02 February 2017 on defining the tendering procedure for the production of renewable energies or cogeneration and their integration into the national system supply of electrical energy, p.3. (No. JORA: 15 of 05-03-2017).

[27] Algeria is set to launch a solar tender for 4 GW. from http://www.climateactionprogramme.org accessed on October 2017.

[28] APS: the Algerian press service.  http://www.aps.dz  /accessed on October 2017.

[29] http://www.climasouth.eu/en/node/20

[30] CCPI Results 2017, p7. Available online pdf:  https://germanwatch.org/en/download/16482.pdf

[31] Idem, p8.

[32]https://www.worldfuturecouncil.org/inc/uploads/2016/03/WFC_2016_What_Place_for_Renewables_in_the_INDCs.pdf

[33] Levin et al. 2015, Designing and Preparing Intended Nationally Determined Contributions (INDCs), Washington, DC: WRI and UNDP. https://www.wri.org/sites/default/files/designing-preparing-indcs-report.pdf

[34] Idem.

[35] CCPI Results 2017. https://germanwatch.org/en/download/16482.pdf


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