NATURAL GAS AND

ALGERIAN STRATEGY

FOR RENEWABLE ENERGY

Abbdelkrim. Ainouche & Abdelhakim. Ainouche

SONATRACH-ALGERIA

� Introduction

� Importance and advantages of the renewable energies

� Algerian renewable programme

� Institutional measures for the renewable energies

� New energy Algeria

� Field of renewable energies

� Solar Energy

� Estimation of the Wind Resources

� Algerian gas

� The hybrid solar gas project

� Conclusion

CONTENT

� The renewable energies sources can contribute to the reduction of the greenhouse gas emissions and to the security of the energy supply.

INTRODUCTION

� Algeria has not only extensive gas reserves , but also hugerenewable energy resources especially solar and wind power.

� Algeria plans to increase the share of renewable energy in its total supply to 5 per cent by 2010.

� To achieve this, Algeria has developed its own national strategyfor renewable energy.

IMPORTANCE AND ADVANTAGES OF THE RENEWABLE ENERGIES

The renewable energies :

� contribute to the reduction of the greenhouse gas emissions ;

� provide opportunities for poverty eradication, particularly in rural and remote regions;

� limit the risks and the pollution of air, water, ground and biosphere ;

� enhance energy security;

� preserve the reserves of the natural resources;

� reinforce the local economy by the development of small and medium-sized companies;� create export opportunities of electricity;

ALGERIAN RENEWABLE PROGRAMME

� During the last decade a number of regulatory and institutional measures have been introduced in order to deal effectively with environmental concerns in development projects and with highly polluting activities.

� Algeria has set up a national programme for the promotion of renewable energy sources in the frame of its sustainable energy development plan for 2020.

� The first target is to increase electricity production by the renewable energies to 5% of the total production by 2010.

Three principal reasons plead in favour of renewable energies development in Algeria :

1. They constitute a solution economically viable to provide energyservices to the rural isolated populations in particular in the Great South areas,

2. They allow a sustainable development because of their inexhaustible character, and of their limited impact on the environment and contribute to the safeguarding of our fossil resources,

3. The monetisation of these energy resources can have only positive repercussions as regards of regional balance and creation of jobs.

INSTITUTIONAL MEASURES FOR THE RENEWABLE ENERGIES

� The law relative to the electricity and to the public distribution of gas, promulgated in February 2002, liberalized the sector of electricity .

� A decree, on diversification of electricity production costs was enacted the 25th of March 2004.

� The law on renewable energies within the framework of the sustainable development promulgated in August 2004.

� A lawful text was recently promulgated, to ensure the price support of electricity produced from renewable energies.

� To develop renewable energies projects, Algeria created, the company New Energy Algeria (NEAL).

NEW ENERGY ALGERIA

Neal is a company created in july 2002 between Sonatrach, Sonelgaz the national power company and a private investor the objective is the :

� promotion and the development of new and renewable energies,

� identification and the realization of projects related to theseenergies,

� definition, development and the implementation of development strategies,

� organization of industrial and commercial activities

� constitution of a research pole for the solar with the research and/or training centers.

� promotion of photovoltaic, in particular in the south of the country,

� search of partners for the investment and the exploitation of new and renewable energies,

� marketing of the electricity produced this way as well on the local market as to export,

� contribution to the production of electricity from solar and wind,

FIELD OF RENEWABLE ENERGIES

FIELD OF RENEWABLE ENERGIES

Solar Energy

265019001700Received average energy (Kwh/m 2/year)

350030002650Average sunshine duration (Hours/year)

86104Surface (%)

SaharaHigh Plateaus

Coastal Region

Regions

Solar Potential in Algeria

� The exploitation of this solar potential enables us to complete

our program for rural electrification;

� Today 95% of the country is covered by the domestic grid.

Remote areas, far away from the power grid can only benefit

from electricity supplied by an adequate use of renewable

energy.

ALGERIAN GAS TRANSMISSION NETWORK AND NEW GAS PROJECTS

Laghouat

H. Messaoud

Zina

G. TouilR. Nouss

In AmenasT. Fouyé

OhanetAlrar

AlgiersIssers

Bejaia

AnnabaSPAIN

El Aricha

O. Saf SafGZ0GZ2

H. R’mel

GZ3

ENRICO MATTEi24 to 30 Bcm/y

TiaretRabat

Tanger

PEDRO DURANFARELL

8-12 to 18.5 Bcm/y

GG1

GK2

GIS

SC4

Bechar

Tindouf

Tunis

Ghadamès

SC3

SC2

SC1

GR2

GR1

GM 1

Ouargla

SC1

SC2

SC3

SCA

SCB

SCC

SCD

SCE

GK1Biskra

SC3

LIBYAPIPELINES SYM. DIAM. LENGTH

Hassi R'mel / Arzew GZ0 20”/24” 509 KmHassi R'mel / Arzew GZ1 40” 507 KmHassi R'mel / Arzew GZ2 40” 507 KmHassi R'mel / Arzew GZ3 42” 507 KmEnrico Mattei GEM 2 x 48” 549 KmHassi Rmel / Skikda GK1 40” 573 KmHassi R'mel / Skikda GK2 42” 573 KmHassi R'mel / Issers GG1 42” 436 KmAlrar / Hassi R'mel GR1 42”/48” 961 KmAlrar / Hassi R'mel GR2 42”/48” 961 KmG.Touil / H.Messaoud GM1 40” 150 KmPedro Duran Farell GPDF 48” 530 KmIn salah / H. R'mel * GIS 48” 535 Km

* Pipeline in partnership with BP

LEGENDExisting

Project

PO

R

Oujda

MOROCCO

TUNISIA

Barika

N ’gaous

Merouana

Batna

KhenchelaTebessa

KaisAin Beida

TeleghmaSetif

MilaAin S ’mara

Constantine

Guelma

S. AhrasZ. Youcef

Jijel

H. BouzianeIbn Ziad

O.Djellal

EL Harrouch

B. Mansour

Azzazga

Bouira

Sidi Aissa

M ’sila

Skikda

ArzewOran

El Hadjar

DahmouniSougueur

TipazaCherchelTenes

BoukadirMostaganem

O.Rhiou

Relizane

Zemoura

O.FoddaMedea

El Khemis

Berrouaghia

KoleaBoufarik

Larbaa

D.B.K.

A.Bessam

S.E.Ghozlane

ChlefThenea

LakhdariaT.O

D.E.M

A.Lahdjel

BoussaadaDjelfa

Messaad

Telighmet

Aflou

SaidaO.Djerane

TakhmertFrenda

GhrissRahouia

O.Taria

Mascara Tighenif

Tlemcen

Maghnia

Ghazaouat

S.B.Abbes

Sig

HennayaRemchi

S.Lahcene

Beni Saf

Ain Temouchent

Senia GdyelMohammadia

Touggourt

H.E.HamraBerriane

Ghardaia

Metlili

Tahir

El Milia

El Eulma

B.B.AAin Kebira

El Kseur

Akbou

S.A

Collo

Elma Labiad

Oum Ali

Bir El Ater

Ain Oussara

HBH

LNG

LNG

GZ1

Tarifa

sicily

Sardinia

In Salah

ALMERIACagliariCagliariCagliariCagliari

NIGERIA-ALGERIA17,4 Bcm/y

ALGERIASPAIN

8 to 10 Bcm/y

Algeria-Italy via

Sardinia8 Bcm/y

IN SALAH-H R’MEL9 Bcm/y

LNG

ALGERIAALGERIA

FranceFrance32%32%

BelgiumBelgium16%16%

USAUSA10%10%

TurkeyTurkey12%12%

LNGLNG

SpainSpain23%23%

ItalyItaly5%5%PortugalPortugal

3%3%

Algerian LNG Exports in 2004Total : 60.3 BCM Algerian Gas is mainly marketed in Europe

Total LNG: 25 BCM

Source : Market News « Activity of Sonatrach, January 20 05

GreeceGreece2%2%

EXPECTED GASEXPORT CAPACITY85 BCM/Y BY 2010

MEDGAZ Project

� Flowrate: 8 Billion m3/year

� Hassi R' Mel to Beni Saf(Onshore Pipeline/Algeria)

� Beni Saf to Almeria (Offshore Pipeline)

GALSI Project

� Hassi R' mel - El Kala (onshore pipeline/Algeria) : Length: 640 km.

� El Kala - Cagliari (offshore): Length: 310 km; Depth: 1950 M

� Cagliari - Olbia (Sardinia) : Length: 300 km

� Olbia-C.D.Pescaia (Offshore)

Length : 220 km; Depth : 900 M

Beni Beni SafSaf

WarryWarry

H.R’Mel

� 1300 km on the territory of Nigeria.

Trans Saharan Project

Gas pipeline of approximately 4500 km linking the region of Warri (Nigeria) to Algeria and Europe:

� 2500 km on the Algerian territory;

� 750 km on the territory of Niger;

� Flowrate : 18 To 25 BCM;

HYBRID SOLAR GAS PROJECT

� Algeria strategy consists in carrying out a synergy between the

Solar one and the natural gas thanks to hybrid solar gas projects

by profiting from the Algerian natural gas endowment and to the

permanent sun shining of the South of the country.

� An important hybrid solar gas project is being planned and has

already prompted some interested responses.

� The first project adopted by Neal is the realization in Hassi R’mel

(South Algeria) of a hybrid power station i.e running with gas and

solar of a capacity of 150 MW including 25 MW of solar field.

� Algeria sees ideal opportunities of combining Algeria’s richest

fossil energy source – the natural gas – with Algeria’s most

abundant renewable energy source – the sun – by integrating

concentrating solar power into natural gas combined cycles.

� The development of solar energy could save significant quantities of hydrocarbons and particularly of natural gas, which could be exported towards Europe and the United States.

� The positive implications are double: Firstly, the reduction of burned fossil fuels, will reduce the greenhouse gas emissions, while contributing to improve the energy supply of the our partners.

Annual map of the wind average velocity to 10m of the grou nd (m/s)

Seasonal map of the wind velocity

Project Wind Farm

The second project is the realization of a wind farm in Tindouf

(South Algeria) of a capacity of 10 MW. It will be of the wind-diesel

hybrid type.

CONCLUSION

�Algerian energy strategy major concerns and priorities have

always been the important convergence between energy

management, environment and sustainable development.

�The technically exploitable potential of renewable energies

in Algeria is considerable and the quality of the fields is such

as profitable investments can be considered for the ir

development.

�The development of renewable energies corresponds to the

option of a local development, monetizing the exist ent

resources, supporting employment and replying to so cial

waiting in favor of a sustainable development .

�Algeria’s solar potential and land resources are optimal for

the implementation of solar thermal power technolog ies.

�Algeria has an efficient electric grid , an important energy

potential allowing for a significant power generation from

renewable sources that may supply the European market.

�Overall, Algeria is aiming at a 5% share for solar in the

country's electricity mix by 2010.

THANK YOU