The Importance of Partnership for the Public and Private Sectors in the Renewable Energy Technology Industry in Algeria

The Importance of Partnership for the Public and Private Sectors in the Renewable Energy Technology Industry in Algeria

Hadda Rebbouh, Mekhelfi Amina
DOI: 10.4018/978-1-7998-9117-8.ch010
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The aim of this study is to show the importance of partnership in developing renewable energy technology in Algeria by focusing on Algeria's renewable resources and addressing the incentive mechanisms adopted by Algeria in the field of encouraging partnership with renewable energy and diagnosing the most important projects resulting from the partnership between the public and private sectors (domestic and foreign). The study concluded that there is a cooperation as many institutions and renewable energy production stations appeared in the Algerian market resulting from the partnership, but this cooperation is insufficient and is limited by many obstacles, the most important of which are monopoly and lack of experience in the field.
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The development of renewable energies has been marked in the world in recent years. Investments in the field of renewable energy have witnessed a considerable increase since 2004 (Christopher Kaminker, 2012). It reached 280 billion $ in 2018, mainly from the private sector (90%) (Amin Z Adnan, 2018). The generation capacity also increased in 2019 as 176 GW have been added. This transition aims to achieve a set of goals, including reducing dependence on fossil resources, ensuring energy security, limiting climate change, especially that energy is responsible for 80% of carbon emissions, which are increasing clearly, it has arrived at 1.3% during the period (2014-2019). In comparison, they decreased exceptionally in 2020 (Francesco la camera, 2021).

Algeria, like other countries, is seeking to reduce carbon emissions, especially as it is a strategic party in the production of fossil energy, whether gas or petroleum (Mourad Zaid, 2017). It has produced an LN capacity of 56 million m 3/ year (World Energy Council, 2020) as fossil resources are the main component of the Algerian economy. Algeria has witnessed an economic crisis since 2014 due to the decrease in oil price when the budget deficit reached 20% of the GDP. On the other hand, the average need for electricity increased to 6% compared to previous years in 2015 (Saliha Haddoum, 2018). Thus, the trend towards renewable energies became a strategic option, especially since Algeria has one of the largest solar fields in the world. Yet, it is not exploited as renewable electricity is less than 1% of the energy mix (H. Lohoues, 2016). Still, the transition of renewable energy resources is determined by many problems; the most important is financing.

Therefore, Algeria has resorted to opening the way for partnership. It is considered one of the assisting factors in the energy industry, whether fossil energy or renewable energy projects. It has several forms, such as contractual and cooperative projects (GRANT, 2012) . Algeria witnessed a decline in partnership contracts in the field of energy between 1993 and 2000. It introduced many legal amendments to open the way for investors. During the period (2001-2006), Algeria witnessed a noticeable increase due to the 07/05 law that allows opening up to foreign companies. With regard to renewable energy, the openness of the partnership began to become evident since the 2011 program. To understand the contribution of the partnership in developing renewable energy, we show the following problem (Manal Malizi, 2021):

To what extent does the partnership contribute to developing renewable energy technology in Algeria?

And in the main question, we include the following sub-questions:

What are the capabilities of Algeria in renewable energy resources?

What are the incentive mechanisms adopted by Algeria in renewable energy development?

What is the status of the partnership in the renewable energy technology market in Algeria?



This paper relied on the descriptive-analytical method. It diagnoses the reality and actual data of the importance of partnership in developing renewable energy technology in Algeria. It was based on a selection of international articles such as (Bindzi Zogo Emmanuel Cedrick, 2017). It considers the partnership a mechanism for developing renewable energy, while (Sophie Jablonski, 2013) has discussed the importance of partnership in spreading renewable energies and the obstacles governments face in the Mediterranean countries. On the other hand, (Amal Rahmane, 2019) has called attention to the experience of the partnership between Algeria and Germany in the field of renewable energy and presented a group of studies, including (Boudghene, 2011) and (Mohammed Bouznit, 2020), which demonstrated the Algerian experience in the field of renewable energy.

Key Terms in this Chapter

Renewable Energy Contracts: An agreement between the government or one of its agencies and private sector companies to license them. Exploitation of natural resources to produce energy over a period of time. Against a set of obligations.

Renewable Energy: Is a natural and permanent inexhaustible resources that exist in nature. It has several sources, including the solar, the wind, water, and bioenergy.

Auction: Is a custom procedure. It is based on an evaluation standard defined by the sellers and is based on a publicly available set of rules designed to allocate the reward items and outcomes.

Tender: Is the process through which the official authorities and companies invite to submit bids for large projects that are specified in a period of time.

Renewable Energy Technology: Is the integration of renewable energy sources into modern technology.

Energy Efficiency: Use less energy to produce the same effect or perform the same function.

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