Genesis Morocco: Algeria is out ?

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Genesis Morocco

Project Genesis is a strategic sustainable development framework for Morocco to translate from being a net importer of energy and a country facing water shortage issues, into the number one producer both of clean renewable energy and water in the region.

Sunday, August 29, 2010    <<Home

Algeria is out ?

Personal notes : It is understandable for an oil and gas producer to concentrate on maximizing its oil revenue, while it lasts. My guess is that Algeria will come to renewables in the next two or tree decades, coinciding with the expect peak and rapid depletion of oil, it will seek to make up for the lost revenue although its gas reserves garantee it a comfortable safety mattress. 

So, its twenty or so more years lost for that sector in Algeria which anyway you look at it is a pity. I am still confident that complementarity between gas and renewables has been fully considered by the Algerians, and encompassed in their energy strategy for the next decades.

Read on :

While other African countries are recognizing the potential that renewable energy offers - from limitless energy, to a stronger economy and less pollution - Algeria has opted to not invest in the renewable energy market.

While Algerian President Abdelaziz Bouteflika has said he recognises the ability for the energy sector to drive the country's economy and expand it, the majority of investment and energy in the industry will not go on renewable sources.

While Bouteflika has issued a draft of a "real action plan" on the development of renewable energy sources, the country's investment of $286 billion into the energy sector over the next four years is primarily going into the hydrocarbon sector, such as oil and gas.

For a country that has high levels of sunlight, Bouteflika's shortsightedness on this matter, choosing to concentrate on developing the hydrocarbon industry, could backfire for the country within a few years.

The President was quoted by local news sources as saying that the country needed to increase investment in the ""development of its hydrocarbon potential, intensifying research efforts and exploration." He also called for a re-evaluation of petrochemical industry projects in order to "create a downstream industry."

"We must ... mobilise domestic financing and encourage the entry of high level foreign partners to explore our large reserves of iron and phosphate, for example," he added.

Energy and Mines Minister Youcef Yousfi forecast growth in output of hydrocarbons thanks to an "effort to optimise the exploitation of deposits".

Algeria is one of the richest country's in North Africa and is often credited with maintaining its economy. By opting to invest in oil and gas instead of renewable sources, Algeria could change how other countries see alternative energy. However, for many, those countries who don't have oil supplies, the need for alternative energy is a necessity rather than a choice.