Commission de Régulation de l Electricité et du Gaz Commission for Electricity and Gas regulation ضبط لجنة الكھرباء و الغاز Legislative and institutional framework for renewable energies in Algeria. AHK (26 février 2013, Berlin Allemagne) Ramla Dalila Permits and Concessions Director Berlin, 26th February 2013 1
Current regulatory framework governing renewable energy Several laws regulate the field of renewable energies in Algeria: Law No. 02-01 of 05 February 2002 on the electricity and gas distribution by pipeline and its implementing regulations; Act No. 04-09 of 14 August 2004 on the promotion of renewable energies in the context of sustainable development; Ordinance No. 01-03 of 20 August 2001 on the development of investment Law No. 09-09 of 30 December 2009 Finance Act for 2010 (creation of FNER National Fund for Renewable Energy) 2
Renewable energy and electricity production (1/4) Main provisions of the law 02-01 and its implementing provisions: The principle of bonuses for producers using renewable energy and/or cogeneration 3
Renewable energy and electricity production (2/4) The producer's right to connect its facilities to the transport or distribution of electricity networks; To receive priority placement on the market for the production of electricity that will be paid; The requirement for the concession holder to purchase all the electricity produced in the special scheme 4
Adaptation of the existing framework (1/2) Adoption of the national development program of new and renewable energies and energy efficiency for the period 2011-2030 which provides: 12,000 MW by 2030 from renewable energy assigned to Sonelgaz for the domestic market. Involvement of other private and public operators in the production of energy from renewable sources. 5
Adaptation of the existing framework (2/2) These new objectives require a modification of the existing regulatory framework: Choosing a new encouragement mechanism Work undertaken at the sector level to accomplish those choice 6
I - Proposal for a draft decree fixing the conditions of access to benefits related to costs of diversification of electricity production In accordance with the law n 02-01 related to electricity and gas distribution, the draft Executive Order sets: Conditions for access to the benefits related to costs of diversification of electricity production The application process for benefits to producers of electricity from renewable energy source Feed-in-tariff rates 7
I Proposition d un projet de décret fixant les conditions d accès aux avantages relatifs aux coûts de diversification de la production d électricité Conditions d accès aux avantages Les filières concernées par ces dispositions sont : Solaire photovoltaïque et thermique, Eolien, Géothermie, Petite hydraulique, Biomasse, Les installations de cogénération dont la puissance ISO 50MW 8
I - Proposal for a draft decree fixing the conditions of access to benefits related to costs of diversification of electricity production Conditions of access to benefits (continued) Production facilities must be connected to the transmission or distribution of electricity.. The producer of renewable electricity is subject to the same financial conditions as those of the common when connecting with the transmission or distribution of electricity, ie: Funding by the manager of transportation of electricity the first 50 kilometers of the connection, Funding by the distribution of electricity Operator for the first 5 km of the connection. 9
I - Proposal for a draft decree fixing the conditions of access to benefits related to costs of diversification of electricity production Application procedure for granting benefits Submitting of the benefit application form to the CREG at the same time that the request for authorization to operate production facilities is made, The processing time of the application must not exceed four months 10
I - Proposal for a draft decree fixing the conditions of access to benefits related to costs of diversification of electricity production Application procedure for granting benefits (suite) The application folder must contain at least one copy of the original warranty certificate issued by a competent body (CREG or network manager, as appropriate) The facilities must have equipment for measuring electrical and thermal energy to determine the flow quantities injected and withdrawn from the network The decision to award benefits to the applicant shall be notified by the Minister of Energy. It allows the applicant to enter into a purchase agreement with an electricity distributor with the guaranteed feed-in 11 tariff in force at the date of its notification
I - Proposal for a draft decree fixing the conditions of access to benefits related to costs of diversification of electricity production Guaranteed purchase price and purchase agreement The level of the tariff is determined by the technology of the plant, power (MW) and potential implant site. The feed-in-tariff is fixed for the duration of the contract with a possible revision at the end of the fifth year based on actual measured potential. The Feed-in-Tariff is fixed by order of the Minister of Energy, on a proposal from the CREG 12
I - Proposal for a draft decree fixing the conditions of access to benefits related to costs of diversification of electricity production Feed-in-Tariff and compensation to the distributor Conclusion of a contract between a producer and a distributor based on the feed-in-tariff, Revision of the guaranteed purchase price for new facilities to take account of technological and economic Resources for financing incentives: Compensation granted to the distributors by the National Fund for renewables Energies in part or in whole, and / or tariffs charged to final customers, The additional costs sustained by the distributor are calculated based on an average price of conventional electricity (CREG decision) 13
II Draft decree concerning the certification of origin of electricity 14
II - Draft decree concerning the certification of origin of electricity In accordance with the Law No. 04-09 on the promotion of renewable energies in the context of sustainable development, the draft decree sets: The conditions for granting certification of electricity The application procedure for certification Operational control after the commissioning of the installations 15
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