Boukhalfa Yaïci

8/22/2019 Boukhalfa Yaci

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Boukhalfa Yaci

Keynote update Algeria:

Transitioning from Fossil fuels to

Renewable Energies

Solar MaghrebRabat, 22 & 23 May 2013


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Introduction Our Company

Brief description of the Algerian Renewable

Energies Program Current situation

Conclusions

Agenda


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Introduction

As an exporter of oil and gas with limited resources to cover local need

and to support export contracts for years and years, Algeria has decided

to develop renewable energies as a strategic approach,

Electricity demand is increasing at a high rate mainly pushed by

domestic air conditioners during summer and agricultural sector,Part of revenues provided by exported fossils resources will serve to

develop and execute a program revealed in February 2011 with the aim

to install 22 GW of electricity by 2030 (12 GW to cover local needs and

10 GW as an export option)

RE Industrial development is a key point of this program.


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Brief overview ofEnR Engineering Services:

Services offered

Compagnies

Consulting

Engineering

TrainingMarket analysis

B2B relationship

Industrial projects

Solar PV plants

Off-grid systemsSpecific studies

Engineers

Installers


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Brief overview ofEnR Engineering Services

RE Project expertise

Feasiblystudies

Siteassessment

Administrativeprocess

EngineeringEconomic &

financialassessment

We constructed a

site ranking

model

considering

multiple criteria

(solar radiation,

surfaces

available,distance to the

grid, etc.)

We studied

required

documentation

and duration

process to fulfill

local and centralregulations

We develop a

step by step

process to study

and execute a

project

We develop a

business model

based on a local

financing process

As a first step

before to invest,

we estimate

performance and

cost of a project


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The Algerian Renewable Energy and Energy Efficiency

Program (2011 2030)

12,000 MW by 2030

CSP plants: 60% focusing on tower + storage.

PV solar farm: 24 % using crystalline technology.

Wind farm: 16 % of the total


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Financial and investment support

A derogatory scheme:Exemption during 3 years (realization period) and 10 years (exploitation period)

All the wilayates of the South, some wilayates of the highlands and some

municipalities of some wilayates of the highlands.

Project of national interests (convention regim):

Extension of periods exemption: 5 years (realization period) and 10 years(exploitation period)

An investment code to offer advantage through three mechanisms

A general scheme:Exemption for 1 to 3 years during construction: customs duties, VAT, property

transfer tax, registration fees, etc.

Exemption of tax on profits, tax on turn-over during 3 years which can be extended

to 5 years in case of job creation


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Financial and investment support

A renewable energy fund (1% of oil & gas fiscality) which:

Contribute to finance projects producing electricity using RE and cogeneration plants, Subsidize equipments,

cover the feed-in-tariff (tarif de rachat garanti),

Stimulate other renewable energies (not producing electricity)

Participate to set up new structures like laboratories (control and certification)

Other aspects like studies, training, maintenance, etc.

Investment funds (one at a national level and 48 at wilayate level) which:

Participate at a level not more than 49%

Limit their contribution to 30% of its one fund for each project

Can provide risk capital, developing capital or restructuration of the capital

RE projects are eligible to these investment funds

Bank loans:

Limited to 65 70% of a project

Credit loan at a rate of 5,5% with a high level of bonus

Mid-term maturity


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Dispatching of RE development process

RenewableEnergy

Program

SonelgazHolding

12,000 MW

by 2030

Private and/orPublicOperators

?

Through a feed-in Tariff

(to be implemented)


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F-i-T: Mechanism elected by CREG

Source: CREG. Mcanismes dencouragement des EnR en algrie. ERA-EnviroAlgrie, Oran, 17 Oct. 2012


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An important change is necessary in local regulation

2 decrees are in preparation (by CREG):

1. Conditions to access to advantages related to diversification costs by:

Removing the auction process (updating diversification costs decree)

RE electricity producer will be submitted to standard regime and not special regime

concerning grid-connexion to transport grid (>60 kV) or distribution grid (


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An important change is necessary in local regulation

Technology

Power (MW)

RE Resources

Solar PV, Solar CSP

Wind

Biomass

Geothermal

Cogeneration Plants

Solar insolation (Hours)

Wind (m/s)

Due to the non availability of long-term resource data records, the feed-in-tariff could

be subject to revision after a 5-year period.


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Existing or announcement of investments

Player Value Chain Capacity Current situationRouiba Eclairage PV: from Si to Panel 140 MW/y Starting of production: mid 2014

Extend of capacity is projected

Condor PV: assembling solar panels 50 MW/y Starting of production: June 2013

Aures Solar PV: assembling solar panels 20 MW/y A J/V company with foreign

partner (49% /51%)Starting of production: by the end

of 2013

ALPV (Algerian

PV Company)

PV: assembling solar panels 12 MW/y Line in place since many months

Private companies anticipate a development of a local market in solar PV technology.


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Actual status of the program

Technology Capacity

(MW)

Type Remarks

PV 1,1 Grid-connected Under construction

Commissioning: Sept. 2013

PV 3 Off-grid Disseminated over 13 wilayate

Starting on Q4 2013 till Q2 2014

Wind 10 Grid-connected Under construction

Commissioning: Sept. 2013

Technology Capacity

(MW)

Type of equipment Remarks

PV modules 22 270 Wp Under tender bid process

Inverters 22 500 kW To be relauched

Transformers 71,5 650 kVA Awarded

DC

combiners

Under tender bid process

Period

2011/201

2

SinceJ

an

.2013


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Development process of a PV project followed by Sonelgaz

A modular Concept of a solar PV plant

PV: 1 MWp Inverter: 2x 500 kW

Transformer: 2x650 kW

Separating Engineering, Procurement and Construction phases

Engineering: CEEG awarded a contract to a Spanish engineering company(end 2012)

Procurement of components: local tender process before to launchinternational tender process (in case of a failed first process)

Construction: Local companies will be privileged

Industrial Approach privileged

Seek a partnership through important contract awarded

Certification of products through a laboratory control


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Next steps

Availability of FIT before this autumn as Sonelgaz will commission twoplants,

Level of FIT will be probably the same as observed in other countries

We expect a solar PV private market mainly oriented to farmers and

industrials

Probably , first projects will be available in 2014.


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Conclusions

Algeria is facing a major dilemma: how to leave a fossil economy to a

green economy fueled by revenue representing more than 96% ofexporting goods?

An increase of energy consumption at a present rate is unsustainable,

RE but also Energy Efficiency is considered as a necessary change in

order to satisfy a requirement of environment and a better way toengage the country in a new era with the aim to satisfy local needs in

electricity, exporting solar electricity instead of fossil fuels and

developing local industry,

A program with 22 GW of RE power is under development and a new

local industry is emerging in solar photovoltaic

An aggressive tariff could push heavily this tendency.


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Thank you for your attention!

www.enrengineeringservices.com
http://www.enrengineeringservices.com/http://www.enrengineeringservices.com/

Boukhalfa Yaïci

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