Renewable Energy in Algeria: Desire and Possibilities

Abstract

Algeria, like other developing countries, has been committed to promoting the transition to renewable energy for several years. The national government established several laws and attractive subsidies that encouraged various socio-economic entities to use renewable energies and engage in more sustainable practices. Despite these efforts, industrial and private entities have not responded as hoped. To identify the factors that impede government efforts toward sustainable practices, this paper focuses on the two most energy-consuming sectors: building and transport. The analysis reveals that both financial and socio-cultural issues constitute the two main obstructive elements to energy transition in Algeria. This is the first study to be carried out in Algeria on technico-economic difficulties in the application of energy transition towards renewable sources.

Keywords

Energy transport efficiency renewable sustainability building policy

Introduction

Algeria is once again facing an oil crisis. Oil prices fell from US$115/barrel in June 2014 to nearly US$60/barrel at the end of June 2019. The national energy sector is excessively dependent on hydrocarbons, which still hold a significant weight in the economy. About 98% of Algeria’s export earnings come from oil and conventional gas.

In 2011, a renewable energy and energy efficiency development program was set up with the aim of producing 12,000 MW of renewable electricity per year by 2030. That amount would account for 40% of the national total energy consumption. The production would be 37% solar and 3% wind.

Algeria’s energy transition from almost entirely conventional hydrocarbons to a new diverse system will ensure the security of energy, economy, and sustainability of the country.

One ongoing question is how alternative energy sources will combine to meet Algeria’s needs. The following analysis shows that renewable energy in Algeria is not profitable. This is the main reason that the renewable energy sector is struggling to develop, and therefore cannot compete with the fossil fuel industry. In particular, the transport and building sectors continue to rely on fossil fuels because renewable energy is not economically feasible. The main reasons for this situation are identified and discussed.

Geographical and economic data of Algeria

Algeria lies in the Maghreb region of North Africa. With an area of 2,381,741 square kilometers (919,595 square miles), Algeria is the tenth-largest country in the world, the world’s largest Arab country, and the largest in Africa (CIA, 2014). The southern part, representing 80% of the country’s surface, is occupied by Sahara desert.

Algeria’s hydrocarbon deposits are among the largest in the world, generally located in the South (Figure 1) (AFP, 2009).

Figure 1.

Gas and oil deposits in North Africa (AFP, 2009).

Algeria possesses the fourth-largest economy on the African continent, and the 48th-largest economy in the world. Reduced to purchasing power parity, per capita GDP (PPP) is estimated at US$7600 in 2012.

Algeria is a major producer and exporter of natural gas (fifth-largest producer and fourth-largest exporter (British Petroleum Full Report, 2019)) and oil (13th-largest producer and ninth-largest exporter (British Petroleum Full Report, 2019)). Algeria’s trade balance remains highly dependent on the revenues generated by the sale of oil and gas, which alone account for more than 97% of the overall volume of exports in 2017 (Daniel Workman, 2018)

Characterized by a strong dependence on hydrocarbons, Algeria’s economic situation seemed favorable, both internally and externally, until 2014. In 2014, the Bank of Algeria predicted that oil and gas revenues would fall by nearly 50% in the first quarter of 2015, from US$15.6 billion in March 2014 to only US$8.7 billion in March 2015, which raised fears that a major financial crisis would occur in the country.

National energy consumption (including losses) reached 59.6 million tons of oil equivalents (Mtoe) in 2017, reflecting a 2.1% increase from 2016. This was driven by a 4.1% increase in final consumption. The structure of national consumption remains dominated by natural gas (37%), followed by electricity (30%) and petroleum products (27%), as illustrated in Figure 2.

Figure 2.

National consumption by energy form (SONELGAZ, 2018).

The evolution of energy consumption by sector in 2017 can be summarized as follows:

- The transport sector consumption increased to 14.9 Mtoe, driven by higher fuel prices on the domestic market;

- The industrial and public works sector consumption increased by 7.6%, from 9.2 Mtoe to 9.9 Mtoe, driven by the higher consumption of the building materials subsector (+7.5%) and industry (+45.9%);

- The Households and “Other” sector increased consumption by 6.6% from 18.5 Mtoe to 19.8 Mtoe. It was driven by the higher consumption in the residential subsector (+5.7%). In particular, the gas and electricity needs increased with the number of SONELGAZ (Algerian National Society for Electricity and Gas) customers.

The breakdown of consumption by sector is given in Figure 3.

Figure 3.

Structure of Algerian final consumption by sector (SONELGAZ, 2018).

Electricity consumption per capita reached 1363 kWh in 2014, which represents only 45% of the world average (3030 kWh), but 2.4 times the African average (568 kWh) (British Petroleum Full Report, 2016).

The continued growth of domestic energy demand (oil and gas), the risk of depletion of these resources, and the global warming clearly indicate the need to launch an energy transition towards a more sustainable model.

Energy transition of Algeria

Achieving the goals of energy security and sustainability, as well as access to clean energy, requires a strong and stable policy framework that imposes the energy efficiency and development of renewable energies as priorities. Energy efficiency, which consists of reducing the need for energy services, is the most important component of a successful energy transition.

Energy efficiency aims both at reducing the costs of energy use and at minimizing greenhouse gas emissions. It represents the most important component of a successful energy transition. Policies of investment in research and encouragement of non-polluting solutions will all be essential to Algeria’s energy transition.

The use of fossil fuels made it possible to meet the needs of the Algerian economy. Moreover, dependence on the country’s hydrocarbons exports represents a risk for the national economy. So, the challenge of the energy transition is complex: Algeria must respond to higher energy demand and reduce greenhouse gas emissions, while remaining economically competitive.

In this framework, the Algerian government continues to encourage economic sectors to develop the renewable energy sector, whether by circulars, subsidies, or attractive redemption prices.

According to Algeria’s 2012 Program for the Development of Renewable Energy and Energy Efficiency (PENREE), the country is aiming at a renewable installed capacity of 22,000 MW by 2030 (Ecofin, 2012). In May 2018, there were 24 photovoltaic power plants, summarizing a total of 344 MWp (HuffPost Maghreb, 2018).

Algeria is the 42nd most “ecologically clean” country in the world, and the first among the Arab countries, particularly because of recent progress made in promoting renewable energies and in view of its energy potential (TSA, 2018). Currently, Algeria is investing in the development of renewable energy by constructing the mixed power plant Hassi R’Mel.

Legal framework and government incentives for the development and use of renewable energies

The Algerian government has encouraged state institutions in the field of energy to develop and promote instruments and mechanisms that encourage investment in renewable energies. The development of renewable energies aims to introduce and promote sectors, including solar energy, geothermal energy (biomass), hydroelectric power, and wind energy.

The adoption of the legal framework, conducive to the promotion of renewable energies and to the construction of infrastructures relating to the production of electricity from renewable energy sources, is defined through the following measures:

- Law No. 04-09 of 14 August 2004 promoted renewable energies in the context of sustainable development (OJ No. 52 of 18 August 2004);

- Law No. 09-09 of 30 December 2009 on the Finance Law for 2010, in particular Article 64 on the creation of the National Fund for Renewable Energies and Cogeneration (FNER) (OJ No. 78 of 31 December 2009);

- Executive Decree No. 13-218 of 18 June 2013 set the conditions for granting bonuses for the costs of diversification of electricity production (OJ No. 33 of 26 June 2013);

- Executive Decree No. 15-319 of 13 December 2015 established operating procedures of Special Account No. 302-131 entitled “National Fund for Energy Efficiency and for Renewable Energies and Cogeneration”;

- Government Order of 2 February 2014 established the guaranteed purchase rates and the conditions of their application for electricity produced from facilities using the wind energy sector (OJ No. 23 of 23 April 2014);

- Government Order of 2 February 2014 established the guaranteed purchase rates and conditions of use for application of electricity produced from installations using the solar photovoltaic sector (OJ No. 23 of 23 April 2014);

- Decree of 1 September 2014 established the guaranteed purchase rates and conditions of use for electricity produced from installations using the cogeneration sector (OJ No. 18 of 8 April 2015) (OJPDRA, 2015).

The Algerian government has set up a National Fund for Energy Management for Renewable Energies and Cogeneration (FNMEERC), which is supplied annually with 1% of the oil royalty and the product of certain taxes. The goals of this fund are:

- To help finance actions and projects included in the promotion of renewable energies and cogeneration;

- To grant non-remunerated loans to energy-efficient investments not included in the national program for the control of energy;

- To guarantee for loans made to banks or financial institutions.

Regulations also provide creative based on guaranteed purchase tariffs. The renewable energy producer thus benefits from purchase prices, which are guaranteed for a period of 20 years for installations in photovoltaic, solar energy, and wind. These purchase tariffs are intended to cover any additional costs resulting from the electricity produced from renewable sources. Electricity produced from renewable sources receives a premium for each kWh produced, marketed, or consumed, as described in Table 1.

Table 1.

Guaranteed purchase price per power band and according to the potential in DZD/kWh (AME, 2019).

Regulatory limit of adjustment	Number of hours of operation (kWh/year)	Guaranteed purchase rate (DZD/kWh)
Regulatory limit of adjustment	Number of hours of operation (kWh/year)	Phase I	Phase Ii
– 15%	1275–1349	15.94 DZD	20.08 DZD
	1350–1424		18.83 DZD
	1425–1499		17.45 DZD
Reference potential	1500–1574		15.94 DZD
+ 15 %	1575–1649		14.43 DZD
	1675–1724		13.06 DZD
	>= 1725		11.80 DZD

Notes: The currency in Algeria is the Algerian Dinar (DZD). At time of writing, the exchange rate was 1 Euro = 133.14 DZD.

The reference rate for the fossil-fueled kWh used in buildings is 4.17 DZD.

In addition to the general framework governing development of investments related to the promotion of renewable energies, the legal framework in force provides direct and indirect support for renewable energies. To encourage industries in this program, the Algerian government also plans to include reduction of import customs duties and VAT for the components, raw materials, and semi-finished products used in the manufacture of equipment necessary for renewable energies and energy efficiency.

Problems related to the development of renewable energies in Algeria

Transport and construction are the main two energy-consuming sectors in Algeria (with 41% and 36% respectively of the total energy consumption).

Construction sector (residential and tertiary)

There are two main approaches to improve practically the energy performance of the building sector in Algeria:

- The improvement of the building envelope, through the application of bioclimatic architecture, the insulation of walls, windows, and use of a powerful ventilation system (e.g. VMC Double Flow, Canadian Well);

- Autoproduction of energy by means of PV or thermal panels.

Seventy percent of Algeria receives an annual insolation more than 1700 kWh/m² (global radiation) (SOLARGIS, 2019) (see Figure 4).

Figure 4.

Photovoltaic power potential of Algeria (SOLARGIS, 2019).

Even though the solar radiations are high, economic validation is needed to adopt this solution. In the following section, a comparative study is presented. For a sample house in Tlemcen, the comparison regards the energy costs of the house using fossil fuels (gas and electricity: real consumption – energy bill), and respectively using photovoltaic panels (dimensioning and simulation).

Description of the sample house

The house in Tlemcen has a total floor area of 100 m² and comprises a ground floor and two upper levels (see Figure 5). The ground level comprises a hall, kitchen, living room, and bathroom. The first level comprises a living room, kitchen, small hall, and small bathroom. The top level has three bedrooms, hall, and bathroom. The architecture and the positioning of the house allow most of its heating needs to be met by solar energy, since the living rooms are facing south-east and south-west. That positioning is a basic principle of bioclimatic architecture. The external walls are 110 mm double brick plus 50 mm cavity, with 10 mm cement mortar at each side, U value is 1.46 W/m².K. The single-pane glass windows have a thermal transmittance coefficient U = 5.500 W/m².K. The external metallic solid door has thermal transmittance coefficient U = 5.356 W/m².K. The house is inhabited by four people.

Figure 5.

The sample house used in the case study.

As stated before, Algeria is a major producer and exporter of natural gas and oil. As a natural consequence, 83% of homes are meeting their heating, cooking, and domestic hot water needs entirely through the public natural gas network (AME, 2019). Figure 6 shows the Tlemcen house’s use of natural gas and electricity usage throughout the year. Natural gas represents 75% of the overall consumption (Table 2) (Boukli Hacene, 2020).

Figure 6.

The Tlemcen house’s energy consumption from public utilities (Boukli Hacene, 2020).

Table 2.

Relative share of the house’s real energy consumption (Boukli Hacene, 2020).

	1st quarter	2nd quarter	3rd quarter	4th quarter	Total
Real consumption (energy bill) [kWh]	2918.89	2753.8	1206.79	2702	9581.48
Gas [thermal eq. kWh]	2380.89	2253.8	252.79	2164	7051.48
Electricity [kWh]	538	500	954	538	2530

At a rate of 4.17 DZD for one kWh (~0.030 Euro/kWh), the average annual bill for this house is nearly 40,000 DZD (~281 Euro).

Photovoltaic dimensioning by using PVsyst

Developed by Swiss physicist Andre Mermoud and electrical engineer Michel Villoz, this software is considered a standard for PV system design and simulation worldwide. The developers claim this software is designed to be used by architects, engineers, researchers, and students. It is also a very useful educational tool. It includes a detailed contextual “Help” menu that explains the procedures and models used, and offers a user-friendly approach with a guide to develop a project. PVsyst is able to import meteorological, as well as personal, data from many different sources (see Figure 7).

Figure 7.

Pre-dimensioning of a photovoltaic system using PVsyst.

The software offers a quick estimation of energy production from the project planning stage, as well as detailed study, sizing, hourly estimation, and report generation. It represents a handy design tool for PV system design and estimation (see Figure 8). The software simulates most parameters that are required by PV system designers, helps to generate a comprehensive simulation report, and allows high level of control of various factors (PVsystSA, 2018).

Figure 8.

Simulation of the investment in the proposed photovoltaic system by using PVsyst.

The output power P of the PV panels is calculated using the measured maximum voltage and current values as follows:

P = V_{P} \cdot I_{P}

(1)

V_P is the maximum voltage of panel and I_P maximum current of panel. The efficiency of a solar cell is determined as the fraction of incident power, which is converted to electricity and is defined as:

η = \frac{P_{o u t}}{P_{i n}} = \frac{V_{O C} \cdot I_{S C} \cdot F F}{P_{i n}}

(2)

V_OC is the open-circuit voltage, I_SC is the short-circuit current, FF is the fill factor, while the input power is:

P_{i n} = A_{G} \cdot G

(3)

A_G is the surface area of the solar cell (m²) and G the irradiance (input light) (watt/m²).

Results are presented in Table 3:

Table 3.

Comparison between the price of kilowatt hour from fossil fuels and renewable sources.

	Price of kWh	Investment	Annual bill	Investment return time
Electricity from utilities (fossil sources)	4.17 DZD		40,000 DZD(~281 Euro)
Electricity from the own PV system	15.91 DZD	200,000 DZD (~12,000 Euro)		60 years

The photovoltaic panels (polycrystalline type) will be placed on the roof of the house, facing south, according to the solar mask, with an inclination of 30°. Photovoltaic sizing simulation via PVsyst software gives an investment of around 200,000 DZD (~12,000 Euro) for the installation and maintenance of the photovoltaic panel surface of 37 m², with a nominal output power of 5.6 kWh. The annual output would therefore be around 9700 kWh/year, with a cost of the photovoltaic kWh price estimated at 15.91 DZD/kWh.

The annual energy bill using fossil fuels (gas + electricity) amounts to 40,000 DZD (~281 Euro), which is a kWh price of 4.17 DZD/kWh (state-subsidized cost). As a result, the payback period (PP) is calculated as follows:

Payback Period = \frac{PV Investment}{Net Cash Flow per Year}

The payback period was found to be about 60 years. The time to recover the investment in the photovoltaic system for the sample house is too long in Algeria—a country that produces cheap and subsidized natural gas and oil. The other problem is that the Algerian Sahara represents 84% of the national territory, with sunshine of nearly 3,600 hours per year, and temperatures that can exceed 50°C in several regions of the Sahara; therefore, the photovoltaic panel yield would become negligible, and its installation would be better located in the north of the country.

Transport sector

The use of biofuels may improve the energy performance of the transport sector, because the country has a high potential to produce them. It is the world’s leading producer of green beans, fifth largest of figs, sixth of dates, eighth of apricots, ninth of artichokes, and tenth of almonds (FAO, 2005). The potential for tree and vine production is close to one million hectares (ha) in 2006. The harvesting area of all combined species is 2,671,140 ha.

The garden areas for market products represent 372,096 ha. Industrial crops, including tomatoes, tobacco, and groundnuts, comprise 10,569 ha. Stone fruit trees cover 280,387 ha, and citrus fruit trees use 57,064 ha. Agriculture is also developing thanks to the planting of several thousand olive trees to make olive oil in Algeria (Algérie-Focus, 2016).

In using biofuels, there are two main practical solutions:

- Integrating biofuels of oleaginous origin into diesel fuel.

- Integrating biofuels from sugar and starch-containing materials into gasoline.

For the lowest fuel prices (petrol and diesel), Algeria is ranked as the fifth in the world, while it is ranked first for LPG (liquefied petroleum gas), according to the 2018 ranking by the specialized site Global Petrol Prices (NAFTAL, 2019).

The price of a liter of petrol in Algeria is estimated at US$0.35 (41.97 DZD), while diesel is estimated at US$0.19 (23.06 DZD), and LPG-c is estimated at US$0.08 (9 DZD). Venezuela is the country with the least expensive gas at US$ 0.01/liter. In second place is Sudan (US$0.13/liter), third place Iran (US$0.29/liter), fourth place Kuwait (US$0.34/liter), and fifth place Nigeria (US$0.41/liter) (NAFTAL, 2019). As for LPG prices, Algeria is followed by Kazakhstan with US$0.21 per liter, and Azerbaijan in third place with US$0.26 per liter (NAFTAL, 2019).

Even though gas prices in Algeria are among the cheapest in the world, Algerians consider the price of 41.97 DZD very high. After 20 years of price stability, the government mandated increases of fuel prices (see Table 4) in both 2017 and 2018. It should also be noted that the price of fuel in Algeria is subsidized by the government.

Table 4.

Algeria: Evolution of fuel price since 2016.

	Until 31 December 2016	1 January 2017 to 31 December 2017	Since 1 January 2018
	1 Euro = 143 DZD (Algerian Dinar)
Gasoline price [DZD]/liter	23	35.49	41.97
Gasoline price [Euro]/liter	0.16	0.248	0.29
Gas price [DZD]/liter	13	20.23	23.03
Gas price [Euro]/liter	0.09	0.14	0.16
Average evolution since 2016	/	55.6%	77%

The economic efficiency of introducing biofuels could be a result of comparing the prices of fossil fuels with pure or fossil-mixed biofuels. The last prices can be estimated from the vegetable crops, which can be transformed into biofuels (after refining and chemical treatments).

Biodiesel is a diesel fuel that is made by mixing vegetable oil (cooking oil) with other common chemicals (such as antioxidant additives, alkaline additives, molybdenum disulfide, antiwear additives, etc.). Biodiesel may be used in any diesel automotive engine in its pure form or blended with petroleum-based diesel. The result is a less expensive, renewable, clean-burning fuel. An explanation of how to produce biodiesel from fresh oil follows, but the process can be modified to also use waste cooking oil (e.g. frying oil) by refining and removing residues.

A by-product of the transesterification process is the production of glycerol. For every 1 tonne of manufactured biodiesel, 100 kg of glycerol is produced. Originally, there was a valuable market for glycerol, which helped finance the transesterification process. However, with the increase in global biodiesel production, the market price for this crude glycerol (containing 20% water and catalyst residues) has crashed. Research is now being conducted globally to use this glycerol as a chemical building block. One initiative in the UK is the Glycerol Challenge (Biofuels Wikipedia, 2019).

Biodiesel requires two basic ingredients: oil (sunflower is the most common biofuel) and alcohol (preferably ethanol). When these two products are mixed, a chemical reaction—called transesterification—occurs. Two new elements are obtained during transesterification: the etherification oil, which is biodiesel, and glycerol or glycerin (see Figure 9). The proportions (approximate) are: 10 liters of oils + 1 liter of alcohol –> 10 liters of biodiesel +1 liter of glycerin.

Figure 9.

Triglycerides (1) are reacted with an alcohol such as ethanol (2) to give ethyl esters of fatty acids (3) and glycerol (4) (The Glycerol Challenge, 2009).

“First-generation” or conventional biofuels have been produced from food crops grown on arable land (see Figure 10). Food crops are thus explicitly grown for fuel production, and nothing else. The sugar, starch, or vegetable oil obtained from the crops is converted into biodiesel or ethanol, using transesterification or yeast fermentation (Biofuels Wikipedia, 2019).

Figure 10.

Examples of a first-generation biorefinery (translation from IFP, Panoram 2007, Les nouvelles filières biocarburants) (Biofuels, 2007).

Bioethanol is an alcohol made by fermentation, mostly from the carbohydrates produced in sugar or starch crops, such as corn, sugarcane, or sweet sorghum. Ethanol, an octane enhancer, is blended with gasoline at low- to higher-level blends, or used as a fuel on its own.

The following chemical equations summarize the fermentation of sucrose (C₁₂H₂₂O₁₁) into ethanol (C₂H₅OH). Alcoholic fermentation converts one mole of glucose into two moles of ethanol and two moles of carbon dioxide, producing two moles of ATP (adenosine triphosphate) in the process.

The overall chemical formula for alcoholic fermentation is:

C_{6} H_{12} O_{6} \to {2 C}_{2} H_{5} OH + {2 CO}_{2}

(4)

Sucrose is a dimer of glucose and fructose molecules. In the first step of alcoholic fermentation, the enzyme invertase cleaves the glycosidic linkage between the glucose and fructose molecules.

C_{12} H_{22} O_{11} + H_{2} O + invertase \to {2 C}_{6} H_{12} O_{6}

(5)

Next, each glucose molecule is broken down into two pyruvate molecules in a process known as glycolysis (Lubert, 1975). Glycolysis is summarized by the equation:

\begin{array}{l} C_{6} H_{12} O_{6} + 2 ADP + 2 P_{i} + 2 {NAD}^{+} \to \\ 2 {C H}_{3} {COCOO}^{-} + 2 ATP + 2 NADH + 2 H_{2} O + 2 H^{+} \end{array}

(6)

CH₃COCOO⁻ is pyruvate, and P_i is inorganic phosphate. Finally, pyruvate is converted to ethanol and CO₂ in two steps, regenerating oxidized NAD+ needed for glycolysis:

1 . {CH}_{3} {COCOO}^{-} + H^{+} \to {CH}_{3} CHO + {CO}_{2}

(7)

catalyzed by pyruvate decarboxylase

2 . {CH}_{3} CHO + NADH + H^{+} \to C_{2} H_{5} OH + {NAD}^{+}

(8)

This reaction is catalyzed by alcohol dehydrogenase (ADH1 in baker’s yeast) (Raj et al., 2015).

As shown by the reaction equation, glycolysis causes the reduction of two molecules of NAD⁺ (nicotinamide adenine dinucleotide) to NADH. Two ADP (adenosine diphosphate) molecules are also converted to two ATP and two water molecules via substrate-level phosphorylation.

Some features and conversion data:

- One tonne of beet provides about 160 kilos of sugar, compared to 115 kilos for one ton of sugar cane;

- 1 ha of sugar beet yields between 6,000 and 7,000 L of bioethanol;

- Dates are one of the most carbohydrate-rich fruits in the world. 100g of dates comprises 75g of carbohydrates. 100 kg of unpitted dates contain 55% of total weight sugar, from which about 600 liters of vinegar can be obtained;

- 1 ha of wheat or corn can produce 3,000 L of bioethanol;

- 300 ml of wine per kilo of potatoes;

- 100 kg of sugar = 60 L of alcohol;

- Cost of 1 L of bioethanol = 150 DZD (1.66 * 90 DZD).

The calculations are presented in Tables 5 and 6, which compare the price per liter of gasoline to that of biofuel obtained from sugar and starchy foods (see Figure 11), and respectively the price per liter of diesel fuel to that of biodiesel obtained from vegetable oil:

Table 5.

Comparison of the price per liter of gasoline to that of biofuel from sugar and starchy materials.

	1 L of gasoline	Dates	Potatoes	Sugar beet	White sugar
		1 Kg per aliment
Liter of recovered bioethanol		0.6	0.3	0.5	0.5
Price of 1 liter fuel	41.97	220 DZD	300 DZD	140 DZD	180 DZD

Table 6.

Comparison of the price per liter of diesel fuel to that of biodiesel.

	1 L of diesel(fuel oil)	1 L of biodiesel(vegetable oil)
Liter of recovered biodiesel		1
Price of 1 liter diesel fuel	23 DZD	120 DZD

The calorific content of bioethanol compared to gasoline is 66%.

In terms of energy,1.5 liters bioethanol = 1 liter of gasoline.

Figure 11.

Comparison of the price per liter of gasoline to that of biofuel from sugar and starchy foods.

The comparison between prices per liter for fossil fuels and biofuels (Figure 12) shows that it is not enough for a correct economic analysis. In the following, a small comparison between the heating value of fossil fuels and renewable fuels will be presented.

Figure 12.

Comparison of the price per liter of diesel fuel to that of biodiesel.

The heating value (or energy value or calorific value) of a substance, usually a fuel or food, is the amount of heat released during the combustion of a specified amount of that substance. The value is calculated for a complete combustion with oxygen under standard conditions. The chemical reaction is typically a hydrocarbon or other organic molecule reacting with oxygen to form carbon dioxide and water and release heat.

The heating value may be expressed with the quantities:

- energy/mole of fuel

- energy/mass of fuel

- energy/volume of the fuel. (Schmidt-Rohr, 2015)

The heating value is different for fossil fuels and renewable biofuels. Thus, the energy level of 1.5 liters of bioethanol equals to 1 liter of gasoline (see Table 7), while 1.03 liter of vegetable oil equals to 1 liter of diesel (see Table 8).

Table 7.

Energy equivalence between gasoline and bioethanol.

	Gasoline	Bioethanol
Density (kg/L)	0.755	0.794
Heating value (kJ/L)	32,389	21,283
Heating value/gasoline (equal volume)	1	0.657
Renewable heat value/gasoline (equal volume)	0	0.657

Table 8.

Energy equivalence between diesel and vegetable oil.

	Diesel	Vegetable oil
Density (kg/L)	0.84	0.925
Heating value (kJ/L)	37635	36607
Heating value/gasoline (equal volume)	1	0.973

Results and discussion

For the building sector, we found an annual energy bill using fossil fuels (gas + electricity) amounts to 40,000 DZD (~281 Euro), which is a kWh price of 4.17 DZD/kWh (state-subsidized cost). As a result, the payback period (PP) has been found to be about 60 years. The time to recover the investment in the photovoltaic system for the sample house is too long in Algeria, a country that produces cheap and subsidized natural gas and oil.

For the transport sector, we noted from data that despite the increase in fossil fuel prices in Algeria during two successive years, these prices are still far lower than the first-generation biofuel.

The results show that the price of bioethanol is between three and four times the price of gasoline in Algeria.

First-generation biodiesel from oleaginous plants is five times more expensive than diesel produced from fossil fuels. That said, despite a heating value almost identical between biodiesel and fossil diesel, the use of diesel is by far the best solution for heat ratio/price.

Conclusion

Alternative energies, even if they prove to be profitable, can only make a very marginal contribution to Algeria’s energy needs anticipated by 2030. Therefore, these contributions will not be enough to generate the necessary resources to finance an economy that excludes hydrocarbons.

Under these conditions, only conventional hydrocarbons seem to have the potential to fill the predicted energy deficit and generate the resources needed to finance the economic transition in Algeria. Also, it is essential to focus the bulk of efforts upstream, even if the decline in crude prices persists, to curb—or, even better, reverse—the decline in reserves and production.

This study aims to quantify the use of renewable energies as a substitute for fossil fuels in the energy-intensive building and transport sectors. The results suggest that the main problem blocking the development of renewable energies in Algeria is the low price of fossil fuels compared to renewable energies.

The energy cost in Algeria is already low. Renewable energy therefore cannot compete with the fossil fuels used in the transport and building sectors.

In the building sector, the simulation of PV sizing via the PVsyst software suggests that an investment of around 200,000 DZD (12,000 Euro) would be required for the installation of a photovoltaic panel surface of 37 m². The price of photovoltaic kilowatt-hour is estimated at 15.91 DZD/kWh compared to 4.17 DZD/kWh for the fossil kilowatt-hour (state subsidized cost). We found that a return on investment for a PV installation would be about 60 years, which would not be acceptable in a country where the cost of natural gas and oil is very low.

In the transport sector (the second most energy-intensive sector in Algeria), despite the increase in fossil fuel prices in Algeria during two successive years, the prices are still far lower than first-generation biofuel of renewable origin.

The results show that the price of bioethanol is between three and four times the price of gasoline in Algeria. However, the lower calorific supply of bioethanol compared to gasoline is 66%, (1.5 liters bioethanol has the equivalent energy of 1 liter of gasoline). The difference is even greater between first-generation biodiesel from oilseeds and fossil diesel (five-fold increase). That said, despite a nearly identical lower calorific value between biodiesel from oleaginous materials and fossil diesel, the use of diesel is by far the best solution for heat ratio and price.

Footnotes

Funding

The authors received no financial support for the research, authorship, and/or publication of this article.

ORCID iD

Mohammed el Amine Boukli Hacene

Author biographies

Mohammed el Amine Boukli Hacene is an Associate Professor currently works at the Department of Physics, University of Sidi-Bel-Abbes. Amine does research in Energy Physics, Climate change, Building Energy Efficiency, Sustainability and Energy Policy. Their current project is ‘Means of promoting Sustainable Development in Algeria: Study of the reduction of energy consumption of a state institution’ ‘Faculty of Exact Sciences - University Sidi Bel Abbes’.

Dorin Lucache is a Professor currently works at the Department Electrical Engineering, Technical University “Gheorghe Asachi” of Iasi . Dorin does research in energy physics Electrical Engineering and Renewable Energy.

Habib Rozale is a Professor currently works at the Department of Physics, University of Sidi-Bel-Abbes. Habib does research in energy physics condensed matter and thermal physics.

Abbes Chahed is a Professor currently works at the Department of Physics, University of Sidi-Bel-Abbes. Abbes does research in energy physics condensed matter and thermal physics.

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Boukli Hacene

(2020) Energy efficient design optimization of a bioclimatic house. Indoor and Built Environment, 29(2): 270–285. DOI: 10.1177/1420326X19856668.

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