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Algeria: A green giant in the making?
Posted: 01.24.2014 10:38
program for sustainable energy and energy efficiency . This program details the ambitious strategy deployed by different kinds of Algerian actors (public and private) in collaboration with foreign partners to make this sector a lever for economic and social development. This program sets targets for development of solar thermal, photovoltaic, and wind, but also the development goals of the industrial capacity needed to produce the materials needed to program locally. Further developing this program includes a legislative and fiscal framework conducive to investment in sustainable energy initiatives, and provides for the development of appropriate structures for Research and Development at the national and continental levels (thanks to the opening a campus Pan-African specialized in sustainable energy in Algiers).
However, what are the opportunities and challenges of a partnership of energy 'green' of this magnitude with Europe?
Algerian side, Sonatrach and its partners have the ambition to become a major exporter of solar energy to Europe. However, these projects, based on links transmissions submarines, appear promising in theory but in practice are facing significant business and technical challenges.
Indeed, the export of solar energy through submarine cables is a prohibitively expensive option, without even counting the cost of getting this energy from southern Europe to the north, leaving us doubt that this option will retain a competitive price compared to conventional alternatives.
In addition, these economic ambitions seem to be based on some assumptions about the European energy policy. Indeed, the important assumption of the Algerian side is that European countries would be willing to pay more for renewable energy. Given the budget deficit that knows the European Union today, it seems that the reality of the market does not necessarily guarantee the full willingness to pay the price of Algerian solar energy. On the other hand, the success of these projects leads us to ask serious questions about the possible future energy dependence of Europe to Algeria, which would therefore not only a major source of oil and gas but as electricity. So it seems that the real challenge in the game is to overcome these difficulties while ensuring on the one hand, the European energy security over the long term, and on the other, prosperity Algerian investments.
This challenge is not impossible and it would appear that Algeria have the potential to remain the main energy supplier to Europe by adopting the necessary policies in terms of promoting investment in infrastructure, technology transfer, know-how, human resources but also learning to become competitive in the global market.
Strong economic relationship in the renewable energy sector is a key asset for Algeria as well as for European countries. Energy memorandum signed last July between the EU and Algeria is an important step towards building a successful relationship.
Algérie: Un géant vert en devenir? | Amir Lebdi
Posted: 01.24.2014 10:38
program for sustainable energy and energy efficiency . This program details the ambitious strategy deployed by different kinds of Algerian actors (public and private) in collaboration with foreign partners to make this sector a lever for economic and social development. This program sets targets for development of solar thermal, photovoltaic, and wind, but also the development goals of the industrial capacity needed to produce the materials needed to program locally. Further developing this program includes a legislative and fiscal framework conducive to investment in sustainable energy initiatives, and provides for the development of appropriate structures for Research and Development at the national and continental levels (thanks to the opening a campus Pan-African specialized in sustainable energy in Algiers).
However, what are the opportunities and challenges of a partnership of energy 'green' of this magnitude with Europe?
Algerian side, Sonatrach and its partners have the ambition to become a major exporter of solar energy to Europe. However, these projects, based on links transmissions submarines, appear promising in theory but in practice are facing significant business and technical challenges.
Indeed, the export of solar energy through submarine cables is a prohibitively expensive option, without even counting the cost of getting this energy from southern Europe to the north, leaving us doubt that this option will retain a competitive price compared to conventional alternatives.
In addition, these economic ambitions seem to be based on some assumptions about the European energy policy. Indeed, the important assumption of the Algerian side is that European countries would be willing to pay more for renewable energy. Given the budget deficit that knows the European Union today, it seems that the reality of the market does not necessarily guarantee the full willingness to pay the price of Algerian solar energy. On the other hand, the success of these projects leads us to ask serious questions about the possible future energy dependence of Europe to Algeria, which would therefore not only a major source of oil and gas but as electricity. So it seems that the real challenge in the game is to overcome these difficulties while ensuring on the one hand, the European energy security over the long term, and on the other, prosperity Algerian investments.
This challenge is not impossible and it would appear that Algeria have the potential to remain the main energy supplier to Europe by adopting the necessary policies in terms of promoting investment in infrastructure, technology transfer, know-how, human resources but also learning to become competitive in the global market.
Strong economic relationship in the renewable energy sector is a key asset for Algeria as well as for European countries. Energy memorandum signed last July between the EU and Algeria is an important step towards building a successful relationship.
Algérie: Un géant vert en devenir? | Amir Lebdi