Renewables In Algeria – Has The Time Come For IPPs?

Over the past few years, the Algerian Government has paved the way for renewable energy projects by enacting specific laws and regulations, under the supervision of the Algerian electricity and gas regulator (the CREG). Key principles have been laid down in Algerian law in order to facilitate renewable energy projects, such as the financial support scheme for promoting renewable projects, the power purchase obligation and the priority access and injection right.

Earlier this year, the Algerian Government published the applicable feed-in tariffs (FiT) for wind and solar PV projects with an installed power capacity over 1MW. Along with this regulatory framework consolidation, the 2013 CREG'S Activity Report has shown that the Transport System Operator1 and the relevant Distribution System Operators2 (the DSOs) are developing new grid capacities and upgrading their electricity network.

However, to date, the regulatory package for renewable independent power producers (IPPs) has not been fully implemented and the dominant, active stakeholder remains the state-owned company specialised in renewables, Shariket Kahraba oua Taka tMoutadjadida (SKTM - a subsidiary of the state-run company Sonelgaz). SKTM is currently developing a portfolio of 300MW solar PV capacities across the country, with a significant part already in construction.

With upcoming regulation from the CREG seeking to complete the regulatory framework for the sector, this update focuses on the current state of the legal and regulatory framework, and the long-term perspectives for the renewable sector: (i) the overview of the regulatory framework, (ii) the FiT financing scheme and the power purchase agreement (PPA), (iii) the grid connection and injection aspects and (iv) the Algerian administrative permit scheme.

Core elements of the framework include:

WHAT'S NEW SUMMARY Feed-in tariffs for wind and solar projects were published on 23 April 2014 The FiT applies to grid-connected renewables projects (wind and solar PV - not the thermal solar) superior to 1MW of installed power capacity. WHAT'S NEXT SUMMARY Executive Decree for the certificate of guaranteed origin The decree should be issued early 2015 and is currently under discussion between the CREG and the Ministry for Energy. This authorisation is required to benefit from the FiT. CREG regulations on the PPA application forms and templates of PPA These regulations should be issued by the CREG early 2015 and will be published on the CREG website in one package. These regulations are necessary for benefiting from the FiT. CREG regulations on the templates for the grid connection and injection agreements These regulations should be issued early 2015 and will be published on the CREG/DSOs website. These regulations are necessary for benefiting from the FiT. CREG regulations on the financial compensation of the DSOs and GRTE and on the average electricity price These regulations should be...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT