Despite sporadic efforts to tap into its vast energy reserves, Krane says the country is still relying on its oil and gas reserves [Getty]
Algeria’s President Abdelmajid Tebboune has announced scrapping the ministry of renewable energy in a fresh cabinet reshuffle that has sparked fears of environmental degradation.
The department, first established in 1974, oversees the management of natural resources and clean energy in the country but under the new government, its functions will now be transferred to the newly re-appointed Energy Minister Mohamed Arkab.
As Algeria still grapples with its goal to produce 27 percent of its electricity from renewable sources by 2035, mostly from solar power, experts warn the move could be a huge setback for its goals.Â
Middle East energy expert Jim Krane, from Rice University’s Baker Institute for Public Policy, argues the country is already falling behind in the world race to clean energy.
“Algeria is already falling behind the rest of the world, the country has an enormous solar energy resource that it is not taking advantage of, it made a few false starts in the past, but it did not get very far,” Krane told The New Arab.
In 2022, Algiers signed a Memorandum of Understanding (MoU) with Abuja and Niamey, a 4,128-kilometre pipeline linking Nigeria to Algeria’s Mediterranean coast via Niger, which faces security challenges as it must pass through thousands of kilometres of desert, some of which are controlled by jihadist groups.
Energy Secretary Arkab recently announced another “historical project” to export electricity for Europe via a submarine pipeline to Italy during a visit to a facility of Sonelgaz, the state-owned electricity and gas company.
Despite sporadic efforts to tap into its vast renewable energy potential, Krane says the country was still relying on its oil and gas reserves.
According to the Oil and Gas Database of the US-based energy platform, the North African country’s reserves of crude are estimated to be about 12.2 billion barrels – the third largest in Africa and the tenth in the world.
The country’s gas exports are central to the energy security of some EU member states, accounting for around 14 percent of the community’s total gas imports, and is missing the potential to generate further income from renewables.
“It has an enormous solar resource they can take advantage of, there is so much solar radiation and land, [and] one of the cheapest places in the world for solar panel radiation,” Krane said.
“Algerians can be exporting electricity directly using it for their domestic industry and attract foreign investment and to make other products like hydrogen, but they are missing out.”
Despite the criticism, Krane says, merging renewable energy and fossil fuel under one ministry means the country can still consolidate both resources under a broader portfolio.
“It is difficult to target renewables unless you rely on renewables. It is probably less disruptive to integrate solar into its existing rather than shut it all down,” he adds.
The expert claims the reason behind the rollback lies in the country’s domestic issues with reduced foreign investment, difficulty keeping up with industry demand, and the continued export of fossil fuels are slowing down the country’s transition to clean energy.
“The failures have to do with Algeria’s lack of investment capital and opposition from national oil companies – the country has been dragging its feet for so long and it has been disappointing to watch,” Krane adds.
