Energy in Algeria

Last updated

Total energy supply 2021 [1]

  Coal (0.45%)
  Oil (33.54%)
  Biofuels and Waste (0.0038%)
  Natural gas (65.96%)
  Wind, Solar, etc. (0.087%)
  Hydro (0.0015%)

Energy in Algeria encompasses the production, consumption, and import of energy. As of 2009, the primary energy use in Algeria was 462 TWh, with a per capita consumption of 13 TWh. [2] Algeria is a significant producer and exporter of oil and gas and has been a member of the Organization of the Petroleum Exporting Countries (OPEC) since 1969. [3] It also participates in the OPEC+ agreement, collaborating with non-OPEC oil-producing nations. Historically, the country has relied heavily on fossil fuels, which are heavily subsidized and constitute the majority of its energy consumption. In response to global energy trends, Algeria updated its Renewable Energy and Energy Efficiency Development Plan in 2015, aiming for significant advancements by 2030. This plan promotes the deployment of large-scale renewable technologies, such as solar photovoltaic systems and onshore wind installations, supported by various incentive measures. In a strategic move to further develop its energy sector, in 2023, the Algerian government announced plans to offer at least 10 exploration blocks in its first upstream bidding round since 2014, signaling a proactive approach to expanding its oil and gas exploration efforts. [4] [3]

Contents

Overview

Energy in Algeria [5]
CapitaPrim. energyProductionExportElectricityCO2-emission
MillionTWhTWhTWhTWhMt
200432.43831,9271,53926.377.8
200733.94291,9111,48230.685.7
200834.44311,8851,43932.988.1
200923.54621,7711,29944.692.5
201035.474701,7511,26836.498.6
201235.984871,6961,20141.2103,9
2012R38.485391,6721,13146.3114.4
201339.215531,6011,03748.8113.9
Change 2004-109.6%22.7%-9.2%-17.6%38.5%26.6%
Mtoe = 11.63 TWh

2012R = CO2 calculation criteria changed, numbers updated

Natural gas

Countries by natural gas proven reserves (2014) Countries by Natural Gas Proven Reserves (2014).svg
Countries by natural gas proven reserves (2014)

In 2023, Algeria had 159 trillion cubic feet (Tcf) of proven natural gas reserves. Between 2012 and 2021, annual dry natural gas production averaged 3.2 Tcf, while consumption averaged 1.5 Tcf. Despite a production drop in 2020 due to the COVID-19 pandemic's impact on economic activities, production rebounded to a record 3.6 Tcf in 2021. According to the Middle East Economic Survey, this increase was driven by upstream investments leading to new project startups and expansions, notably at the Hassi R’Mel field. Additionally, a decreased need for gas reinjection at oil fields allowed more natural gas to be available for domestic use and export. [6]

Natural gas Production 2011-2021 (billion cubic metres) [7] :29
20112012201320142015201620172018201920202021
79.678.479.380.281.491.493.093.887.081.5100.8

Historically, Algeria has been a significant player in the global natural gas market. In 2009, it was the fifth-largest exporter of natural gas, with a net export of 55 billion cubic meters (bcm), trailing behind Russia (169 bcm), Norway (100 bcm), Canada (76 bcm), and Qatar (67 bcm). That year, Algeria was also ranked as the seventh-largest natural gas producer globally, producing 81 bcm, with the top producers being the USA (594 bcm), Russia (589 bcm), and Canada (159 bcm). [8]

Algeria electricity production by year Algeria electricity production.svg
Algeria electricity production by year

By 2021, Algeria's role in the natural gas sector had continued to grow. Its domestic production of natural gas reached 3,734,001 terajoules (TJ), a 28% increase from previous years. This escalation in production positioned Algeria as the second-largest supplier of natural gas in Africa, with a total supply of 1,775,215 TJ, following Egypt. This robust production not only meets domestic energy needs but also bolsters economic stability through exports and the provision of raw materials for key industries such as chemicals and plastics. [9]

Jijel power plant Algeria Jijel power plant SU-HS 2019.jpg
Jijel power plant

Gas Pipelines

Algeria is a key player in the natural gas export market, primarily serving Europe through three strategic pipelines: the Trans-Mediterranean Pipeline (TransMed), the Medgaz, and the Maghreb-Europe (MEG) pipeline. The increased capacity of the Medgaz pipeline at the end of 2021 significantly improved its delivery capabilities to Spain. Despite encountering temporary disruptions in 2021 due to political tensions that affected the MEG pipeline, normal operations resumed in 2022 with an unconventional reversal, enabling Spain to export gas to Morocco. Furthermore, Algeria is actively considering future pipeline projects like the Trans-Saharan Gas Pipeline, aimed at connecting Nigeria to European markets through Algeria, and the GALSI pipeline, which could potentially be utilized for transporting green hydrogen to Italy. [10]

Oil

Algeria is a member of OPEC and was the seventh-largest oil products exporter in 2008, accounting for less than 11% of the world's oil exports. [8] That year, the total global exports included 1,952 million tons of crude oil and 411 million tons of oil products. Prominent oil fields in Algeria include Hassi Messaoud, Ourhoud, and Rhourde El Baguel. As of 2022, the country produces approximately one million barrels of crude oil per day.

Oil Production 2011-2021 (kb/d) [7] :15
20112012201320142015201620172018201920202021
16421537148515891558157715401511148713301353

The country holds an estimated 12.2 billion barrels of proved crude oil reserves as of early 2023, producing high-quality, light, sweet crude oil with very low sulfur content, primarily the Sahara blend from Hassi Messaoud. Despite these high-grade reserves, Algeria faces challenges in attracting new investment to its aging oil fields, leading to difficulties in maintaining production levels. [11]

In response, the Algerian government introduced a hydrocarbons law in December 2019 to attract international investment by reducing taxes and simplifying the legal framework for upstream activities. Additionally, Sonatrach, the state-owned oil company, operates all national refineries and has begun construction on three new refineries—Hassi Messaoud, Biskra, and Tiaret—expected to begin operations within the next five years. [11]

In 2021, Algeria's total oil supply, combining crude and refined products, amounted to 902,997 terajoules (TJ), marking a 125% increase from 2000. This total includes crude oil production, imports, and adjustments for exports and storage. Domestic crude oil production alone accounted for 151.7% of the total crude oil supply in 2021, reflecting a 10% increase over the same period. Additionally, net crude oil exports constituted 34.4% of Algeria's total crude oil production in 2021, with the export share of crude oil comprising 25% of the total energy exports. [12]

Electricity

Electricity final consumption by sector, 2021 [13]

   Industry (33.98%)
   Transport (2.88%)
   Residential (39.18%)
  Commercial and public services (6.01%)
   Agriculture / forestry (3.94%)
  Non-specified (14.02%)

Algeria primarily relies on fossil fuels for energy generation, with nearly 97% of its electricity capacity derived from these sources. The country has seen significant growth in its electricity capacity, which nearly doubled from 2011 to 2020, mainly due to the addition of more efficient natural gas-fired and combined-cycle gas turbine plants. However, Algeria is also aiming to increase its renewable energy capacity to 15 GW by 2035, starting with a solicitation for bids to install 1 GW of solar photovoltaic capacity divided into 11 projects. This move is part of the government's strategy to diversify energy sources and attract foreign investment in renewable energy projects. [14]

Natural gas was the predominant source of electricity generation, accounting for 99% of the total electricity production which amounted to 85,390 GWh. This significant dependence on natural gas is echoed in the growth of electricity production, which saw a 236% increase from 2000 to 2021.

Electricity generation 2011–2021 (TWh) [15] :50
20112012201320142015201620172018201920202021
53.157.459.964.268.871.076.076.781.579.284.3

Despite this heavy reliance on fossil fuels, electricity trade in Algeria remains limited, with net electricity exports comprising only 1.3% of the total production in 2021, although these exports have increased by 379% since 2000. The electricity sector is a major contributor to CO2 emissions, representing 30% of the country's total energy-related CO2 emissions. On a per-capita basis, electricity consumption in Algeria stood at 1.704 MWh in 2021, showing a 147% increase from 2000, reflecting ongoing economic and population growth. Additionally, the residential sector was the largest consumer of electricity, accounting for 39% of the final electricity consumption, followed by the industrial sector with 34%. [16]

Nuclear Energy

Since 1995 Algeria operates research reactors at Draria and Aïn Oussera. It signed nuclear cooperation agreements with Russia in January 2007, with the United States in June 2007, and with China in March 2008. [17] [18] Algeria has discussed nuclear cooperation also with France.

Renewable Energy

Algeria is focusing on increasing its renewable energy output to 27% by 2035, primarily through solar power, leveraging its high solar irradiance and strong wind speeds. In efforts to conserve its hydrocarbon resources for export, the government has established partnerships with countries like China, Germany, and the US, centering on enhancing engineering, energy storage, and solar technology capacities. Key projects include a one-gigawatt solar initiative and Sonatrach's use of solar energy for its remote operations. The sector, predominantly managed by state-owned entities such as Sonatrach, Sonelgaz, and the Algerian Energy Company (AEC), also sees significant involvement from international firms, enhancing the local renewable energy infrastructure through investments and collaborative governmental agreements. [19]

Total renewable energy capacity 2014–2023 (MW) [20] :2
2014201520162017201820192020202120222023
266299499592604604585505590590

As of 2020, modern renewables accounted for just 0.14% of Algeria's final energy consumption, despite a significant increase of 52% in their usage from 2000 to 2020. This growth highlights Algeria's efforts to shift towards cleaner energy sources to reduce CO2 emissions and reliance on imported fossil fuels. Modern renewables in Algeria are primarily utilized for electricity generation and have potential applications in heating and renewable biofuels for transport. However, the country still faces challenges in phasing out traditional biomass uses, which adversely affect health and the environment. [21]

Solar power

Solar potential in Algeria SolarGIS-Solar-map-Algeria-en.png
Solar potential in Algeria

Algeria has the highest technical and economical potential for solar power exploitation in the MENA region, with a potential of around 170 TWh per year. [22] The first industrial scale solar thermal power project has been initiated by inauguration of Hassi R'Mel power station in 2011. This new hybrid power plant combines a 25-megawatt (MW) concentrating solar power array in conjunction with a 130 MW combined cycle gas turbine plant.

In addition, Algeria has launched in 2011 a national program to develop renewable energy based on photovoltaics (PV), concentrated solar power (CSP) and wind power, and to promote energy efficiency. The program consists of installing up to 12  GW of power generating capacity from renewable sources to meet the domestic electricity demand by 2030. [23]

Solar energy capacity 2014–2023 (MW) [20] :21
2014201520162017201820192020202120222023
2861261354366366366366451451

In 2023, Algeria launched a bid for the construction of 15 solar power plants across the country, each with a generation capacity of 80-220 MW, and a total capacity of 2,000 MW for the entirety of the project, with construction set to begin in 2024. [24] [25]

Largest Algerian photovoltaic power stations [26]
PV Power station Capacity
in MW p
Notes
High Plateaus East, Adrar 90completed 2016, Built by Sinohydro Corp (PowerChina), Yingli Green Energy Holding, HydroChina, owned by SKTM (Sonelgaz) [26]
High Plateaus Centre, Adrar 90completed 2016, Built by Sinohydro Corp (PowerChina), Yingli Green Energy Holding, HydroChina, owned by SKTM (Sonelgaz) [26]

See also

Related Research Articles

<span class="mw-page-title-main">Energy in Japan</span> Overview of the production, consumption, import and export of energy and electricity in Japan

Japan is a major consumer of energy, ranking fifth in the world by primary energy use. Fossil fuels accounted for 88% of Japan's primary energy in 2019. Japan imports most of its energy due to scarce domestic resources. As of 2022, the country imports 97% of its oil and is the larger LNG importer globally.

The energy policy of India is to increase the locally produced energy in India and reduce energy poverty, with more focus on developing alternative sources of energy, particularly nuclear, solar and wind energy. Net energy import dependency was 40.9% in 2021-22.

<span class="mw-page-title-main">Energy in Iran</span> Overview of the production, consumption, import and export of energy and electricity in Iran

Iran possesses significant energy reserves, holding the position of the world's third-largest in proved oil reserves and the second-largest in natural gas reserves as of 2021. At the conclusion of the same year, Iran's share comprised 24% of the oil reserves in the Middle East and 12% of the worldwide total.

<span class="mw-page-title-main">Energy in Norway</span>

Norway is a large energy producer, and one of the world's largest exporters of oil. Most of the electricity in the country is produced by hydroelectricity. Norway is one of the leading countries in the electrification of its transport sector, with the largest fleet of electric vehicles per capita in the world.

<span class="mw-page-title-main">Energy in Brazil</span> Overview of the production, consumption, import and export of energy and electricity in Brazil

Brazil is the 7th largest energy consumer in the world and the largest in South America. At the same time, it is an important oil and gas producer in the region and the world's second largest ethanol fuel producer. The government agencies responsible for energy policy are the Ministry of Mines and Energy (MME), the National Council for Energy Policy (CNPE), the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and the National Agency of Electricity (ANEEL). State-owned companies Petrobras and Eletrobras are the major players in Brazil's energy sector, as well as Latin America's.

Energy in Kazakhstan describes energy and electricity production, consumption and import in Kazakhstan and the politics of Kazakhstan related to energy.

<span class="mw-page-title-main">Energy in Russia</span> Overview of the production, consumption, import and export of energy and electricity in Russia

The Energy in Russia is an area of the national economy, science, and technology of the Russian Federation, encompassing energy resources, production, transmission, transformation, accumulation, distribution, and consumption of various types of energy.

Energy security of the People's Republic of China concerns the need for the People's Republic of China to guarantee itself and its industries long- term access to sufficient energy and raw materials. China has been endeavoring to sign international agreements and secure such supplies; its energy security involves the internal and foreign energy policy of China. Currently, China's energy portfolio consists mainly of domestic coal, oil and gas from domestic and foreign sources, and small quantities of uranium. China has also created a strategic petroleum reserve, to secure emergency supplies of oil for temporary price and supply disruptions. Chinese policy focuses on diversification to reduce oil imports, which used to rely almost exclusively on producers in the Middle East.

<span class="mw-page-title-main">Energy in the Democratic Republic of the Congo</span>

The Democratic Republic of the Congo was a net energy exporter in 2008. Most energy was consumed domestically in 2008. According to the IEA statistics the energy export was in 2008 small and less than from the Republic of Congo. 2010 population figures were 3.8 million for the RC compared to CDR 67.8 Million.

<span class="mw-page-title-main">Energy in Egypt</span>

This article describes the energy and electricity production, consumption and import in Egypt.

<span class="mw-page-title-main">Energy in Italy</span> Overview of the production, consumption, import and export of energy and electricity in Italy

Energy in Italy comes mostly from fossil fuels. Among the most used resources are petroleum, natural gas, coal and renewables. Italy has few energy resources, and most supplies are imported.

Energy in Libya primarily revolves around the production, consumption, import, and export of energy, with a significant focus on the petroleum industry, which serves as the backbone of the Libyan economy. As of 2021, Libya is recognized as the seventh-largest crude oil producer in OPEC and ranks third in total petroleum liquids production in Africa. The country holds 3% of the world's proven oil reserves and 39% of Africa's, marking it as a key player in the global energy sector. Despite its abundant resources, the energy industry in Libya has faced significant challenges due to political instability following the civil war that began in 2011. These challenges have led to frequent disruptions in oil production and exports, directly impacting the national economy and its contributions to the global oil market. The sector's future is closely tied to the resolution of political conflicts and the effective management of its vast hydrocarbon resources.

<span class="mw-page-title-main">Energy in Spain</span> Overview of the production, consumption, import and export of energy and electricity in Spain

Primary energy consumption in Spain in 2020 was mainly composed of renewable sources. The largest sources are petroleum (42.3%), natural gas (19.8%) and coal (11.6%). The remaining 26.3% is accounted for by nuclear energy (12%) and different renewable energy sources (14.3%). Domestic production of primary energy includes nuclear (44,8%), solar, wind and geothermal (22,4%), biomass and waste (21,1%), hydropower (7,2%) and fossil (4,5%).

Energy in Iraq plays a crucial role in both the national economy and the global energy markets due to the country's vast oil reserves and significant status within the Organization of the Petroleum Exporting Countries (OPEC).

<span class="mw-page-title-main">Energy in Greece</span> Overview of the production, consumption, import and export of energy and electricity in Greece

Energy in Greece is dominated by fossil gas and oil. Electricity generation is dominated by the one third state owned Public Power Corporation. In 2009 DEI supplied for 85.6% of all electric energy demand in Greece, while the number fell to 77.3% in 2010. Almost half (48%) of DEI's power output in 2010 was generated using lignite. 12% of Greece's electricity comes from hydroelectric power plants and another 20% from natural gas. Between 2009 and 2010, independent companies' energy production increased by 56%, from 2,709 Gigawatt hour in 2009 to 4,232 GWh in 2010.

Energy in Estonia has heavily depended on fossil fuels. Finland and Estonia are two of the last countries in the world still burning peat.

<span class="mw-page-title-main">Energy in Jordan</span>

Energy in Jordan describes energy and electricity production, consumption and import in Jordan. Jordan is among the highest in the world in dependency on foreign energy sources, with 92.3% of the country's energy supply being imported.

<span class="mw-page-title-main">Energy in Lebanon</span>

Energy in Lebanon is dominated by oil, which represents more than 95% of the primary energy consumed in 2017. The great majority of energy used in the country is imported. The energy market in Lebanon is characterized by sharply rising consumption, and frequent shortages due to dilapidated infrastructure partly destroyed by the civil war that ravaged the country between 1975 and 1990.

Uzbekistan had a total primary energy supply (TPES) of 48.28 Mtoe in 2012. Electricity consumption was 47.80 TWh. The majority of primary energy came from fossil fuels, with natural gas, coal and oil the main sources. Hydroelectricity, the only significant renewable source in the country, accounted for about 2% of the primary energy supply. Natural gas is the source for 73.8% of electricity production, followed by hydroelectricity with 21.4%.

<span class="mw-page-title-main">Energy in Tunisia</span> Overview of the energy sector in Tunisia

The energy sector in Tunisia includes all production, processing and, transit of energy consumption in this country. The production involves the upstream sector that includes general oil and gas, the downstream sector that includes the only refinery in Tunisia and most of the production of natural gas, and varied electrical/renewable energies. Renewable energy has been a strong point of focus for Tunisia as they look to optimize their green energy sources and advance their developing country. The Tunisian government has partnered with Russia and France in hopes of establishing nuclear energy as a viable alternative to fossil fuels and taking up a nontrivial chunk of the energy production in Tunisia. This is expected to be accomplished in the 2020s.

References

  1. "Algeria - Countries & Regions". IEA. Retrieved 2024-05-21.
  2. IEA Key energy statistics 2011 Archived 2011-10-27 at the Wayback Machine Page: Country specific indicator numbers from page 48
  3. 1 2 "International - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2024-05-20.
  4. "Algeria - Countries & Regions". IEA. Retrieved 2024-05-20.
  5. IEA Key World Energy Statistics Statistics 2015 Archived 2016-03-04 at the Wayback Machine , 2014 (2012R as in November 2015 Archived 2015-04-05 at the Wayback Machine + 2012 as in March 2014 is comparable to previous years statistical calculation criteria, 2013 Archived 2014-09-02 at the Wayback Machine , 2012 Archived 2013-03-09 at the Wayback Machine , 2011 Archived 2011-10-27 at the Wayback Machine , 2010 Archived 2010-10-11 at the Wayback Machine , 2009 Archived 2013-10-07 at the Wayback Machine , 2006 Archived 2009-10-12 at the Wayback Machine IEA October, crude oil p.11, coal p. 13 gas p. 15
  6. "International - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2024-05-20.
  7. 1 2 "bp Statistical Review of World Energy" (PDF). www.bp.com (71st ed.). 2022. Retrieved 23 May 2024.
  8. 1 2 "IEA Key energy statistics 2010" (PDF). Archived from the original (PDF) on 2010-10-11. Retrieved 2011-05-18.
  9. "Algeria - Countries & Regions". IEA. Retrieved 2024-05-20.
  10. "International - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2024-05-21.
  11. 1 2 "International - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2024-05-21.
  12. "Algeria - Countries & Regions". IEA. Retrieved 2024-05-21.
  13. "Algeria - Countries & Regions". IEA. Retrieved 2024-05-23.
  14. "International - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2024-05-23.
  15. "Algeria - Countries & Regions". IEA. Retrieved 2024-05-23.
  16. "Emerging Nuclear Energy Countries". World Nuclear Association . April 2009. Archived from the original on 2019-10-29. Retrieved 2009-04-22.
  17. "Middle Eastern nations do nuclear diplomacy". World Nuclear News. 2008-03-25. Retrieved 2008-05-18.
  18. "Algeria - Renewable Energy". www.trade.gov. 2023-01-31. Retrieved 2024-05-22.
  19. 1 2 IRENA, International Renewable Energy Agency (2024). "RENEWABLE CAPACITY STATISTICS 2024" (PDF). www.irena.org. Retrieved 22 May 2024.
  20. "Algeria - Countries & Regions". IEA. Retrieved 2024-05-22.
  21. Zhao, Liang; Wang, Wei; Zhu, Lingzhi; Liu, Yang; Dubios, Andreas (2018). "Economic analysis of solar energy development in North Africa". Global Energy Interconnection. 1 (1): 53–62. doi:10.14171/j.2096-5117.gei.2018.01.007. ISSN   2096-5117.
  22. "Dii - Turning Desert Power into reality: Étude Algérie". Archived from the original on 2014-11-30. Retrieved 2014-11-28.
  23. Nadim Kawach (2023-09-28). "Algeria opens 73 bids for 15 solar power projects". zawya.com. Retrieved 2023-11-24.
  24. "Projet 2000 MW : la phase de construction débutera durant le 1er trimestre 2024" [2000 MW project: construction phase to begin in Q1 2024]. algerie-eco.com (in French). 2023-11-23. Retrieved 2023-11-24.
  25. 1 2 3 Making Solar Bankable