Speech of Chahar Boulakhras, Managing Director of Sonelgaz

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Ladies and gentlemen,

I would like to thank the organizers for the invitation to this conference. I am excited to be right here in Cape Town and to take portion in this session devoted to “energy growth”. I am specifically pleased to address a prestigious audience of major executives, senior government officials and major researchers to talk about power industries and their impacts on financial development and social inclusion.

This is a wonderful chance for me to hear diverse points of view with regards to diverse power trends as effectively as briefly expose my nation sector development and possible.

Ladies and gentlemen,

Our continent consists of abundant possible in power sources. These oil and gas sources will be crucial to meet expanding worldwide demand, particularly as fossil fuels will stay dominant in the worldwide power provide and will cover extra than 80% of key power demand more than the subsequent 20 years. Africa will continue to play an critical function in the worldwide provide of fossil fuels.

For African oil and gas exporting nations, power sources occupy a prominent location in their socio-financial improvement, considering the fact that they constitute their most important supply of foreign exchange.

The robust uncertainties about the oil markets and the fall in hydrocarbon costs clarify why these nations, such as Algeria, are facing issues, accentuated by the robust development in domestic demand. Research show that in the extended term – seeking towards the start off of the subsequent century – 40% of the world’s population will reside in Africa, which is also the continent most threatened by climate modify.

The financial issues facing all African nations, such as exporting nations, could lead us to think that issues about sustainable improvement will be place on the back burner.

This could not be significantly less accurate, as effective power techniques and policies will present nations with structural improvement assisting to attain Sustainable Improvement Targets, which will not be attained without having substantial power consumption in emerging nations. In all our nations, access to power contributes to financial prosperity, social effectively-becoming and sustainable improvement. This is a massive challenge if we count the 645 million Africans who at present reside without having electrical energy.

The challenge is for that reason to cover this demand, to produce wealth and jobs, to make investments and to assure financial and industrial improvement of our nations.

Following this short introduction, I would like to touch upon Algeria’s initiatives in the power sector.

Domestic demand in Algeria has changed drastically in current years. For instance, industrial production of key power has been maintained globally for the duration of the previous decade, reaching 165.two million tonnes of oil equivalent (toe) at the finish of 2018.

This improvement took location even though total power consumption grew steadily, reaching 65Mtoe in 2018 which represents 39,three % of total production. Final power consumption has shown robust improve, reaching 48.1 Mtoe, primarily driven by organic gas, liquefied petroleum gas and electrical energy.

Concerning electrical energy, the investments we have currently created in traditional energy stations to meet demand and our power policy now contains the improvement of renewable energies to far better prepare for the power transition out of fossil fuels.

The Algerian practical experience in access to power is exciting for extra than one particular purpose. The efforts created by the State to strengthen the energy generation capacity, but also the transmission and distribution infrastructure of each electrical energy and gas. Right now, all citizens have access to electrical energy and gas at very affordable costs.

The quantity of subscribers to the energy network has improved drastically considering the fact that the year 2000, from four.five to 9.five million for electrical energy and 1.four to practically six million subscribers for organic gas. The State took charge of the electrical energy and gas connection to accomplish total electrification of the Algerian territory and a penetration price of gas via pipelines. Off grid options have also been created in isolated localities. Considering that Algeria is a gas producer, organic gas is accountable for extra than 97 % of Algeria electrical energy production. In order to preserve fossil fuels for future generations, we have also favoured extra effective combined cycle energy plants.

At the similar time, the work created for the use of clean solutions has been followed up by other initiatives, such as the widespread use of unleaded gasoline in transport and the use of electrical energy added to the use of organic gas and LPG (Butane) as fuels.

Ladies and gentlemen,

Renewable energies have develop into a national priority.

In view of Algeria’s solar possible, its immense territory, our power transition is focused on the improvement of renewable power, specifically via the building of photovoltaic solar energy plants. We have launched an ambitious National Renewable Power and Power Management Plan which was adopted in 2011 and updated in 2015. We have set ambitious and promising renewable power targets and we are committed to make the subsequent twenty years the era of the deployment of sustainable energies for the nation. The plan offers 47 to 51 TWh by 2035-2040.

This plan is at present becoming implemented. We have currently completed 22 photovoltaic plants with a total capacity of 350 megawattpeak in the South and the Hauts Plateaux regions. We have also constructed a 10 MW wind farm and smaller renewable power plants operating with diverse technologies. This installed capacity has permitted us to recognize constraints and challenges that could arise in the improvement of significant scale renewable energies.

National expertise and capacities in this location exist and our tactic will concentrate on the improvement of renewable energies about two elements: power and industrial. This dual tactic appears to us to be decisive considering the fact that it will favour the significant-scale improvement of renewable installations.

In addition, other investment assistance measures are planned to assistance the improvement of off-grid renewable energies, such as applications in agriculture, water sources, person use and isolated agglomerations.

Our tactic is also primarily based on power efficiency by aiming to decrease all round power consumption by 9% by 2030 by enhancing the power functionality of houses and cities.

We are launching actions in favour of the residence insulation systems, low consumption lamps, solar water heaters, sodium lamps public lighting as effectively as the promotion of clean fuels such as LPG and Compressed All-natural Gas.

A further critical path is to produce hybrid energy plants in isolated networks in the South of the nation, with the use of solar power and wind energy this tends to make it doable to decrease the fuel consumption in the energy plants and the fuels applied for its transport and consequently to decrease numerous pollutant emissions.

Much more than 50 megawattpeak in renewables will be made by Sonelgaz to hybridize these at present fuel-primarily based energy plants.

Ladies and gentlemen,

On the regional level, Algeria has created important efforts to consolidate and create regional power exchanges, each in the path of the Maghreb, towards Europe and towards Africa.

We are also involved in the important electrical energy interconnection projects with our neighbours and the other important projects, in partnership, which resulted in the vast improvement plan.

I would like to state when once again our commitment to engaging with extra with our lovely continent complete of promises and possibilities. Algeria is continuing its efforts to lead higher-scale projects that will enhance investment and organization possibilities in Africa exactly where access to power is a important challenge.

We strongly think in partnerships and win-win cooperation that consists of making wealth locally and creating the know-how and expertise of the human resource. We envisage our partnership with Africa additional than the Mediterranean location.

Beyond the projects of electrical interconnections, we want to extend even additional towards Sub-Saharan Africa. We have created knowledge that we can share via partnerships in instruction, research but also via the building of electrical energy networks, particularly in the context of rural electrification.

Enhancing access to power in Africa is foreseeable thanks to the smaller-scale mini-grids that we have currently effectively created in locations that are challenging to access in Algeria. We have also created progress in the production of smaller and significant energy turbines, manage systems, alternators, transformers, insulators, and so on.

On the other hand, all these possibilities can only be realized if we can produce an location of shared prosperity. From this point of view, we contemplate renewable energies as an chance offered to Africa to decrease unemployment, strengthen social inclusion, and financial injustice among nations.

These are circumstances that will consolidate the safety of our individuals and nearby improvement. After once again, extended-term partnerships ought to be envisaged to assure that sustainable improvement is no longer restricted to every nation individually.

The improvement of Africa ought to be planned out on a continental viewpoint such as significant-scale essential projects..

Ladies and gentlemen, the improvement of Africa can be understood as such only if it positive aspects everybody.

Thank you for your interest.

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