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Algeria Alge rian n ex expe perie rienc nce e in re in rene newab wable le en ener ergies gies an and d Sonatrachs role in solar PV PV plants plants Ali HACHED S ONATRACH Advisor to the Chairman & CEO REM 2020


  1. Algeria Alge rian n ex expe perie rienc nce e in re in rene newab wable le en ener ergies gies an and d Sonatrach’s role in solar PV PV plants plants Ali HACHED – S ONATRACH Advisor to the Chairman & CEO REM 2020 “Transition path in the Mediterranean Area in a post Covid environment” July, 2020 1 I 1 REM 2020 I July 2, 2020 I Ali Hached

  2. Previous program vs. current program Current program ** Previous program * Step 1 (2015-2020) Step 1 (2000-2024) 4 525 4 000 Renewable energies (all) PV power plants (Tafouk) Step 2 (2021-2030) Step 2 (2025-2035) 1 000 - Wind 17 475 Renewable energies (all) - PV power plants 10 000 Program 2000-2030 Program 2000-2035 22 000 15 000 Total (MW) Total (MW) 60 bcm Gas saving *The National Program, initiated in 2011, was revised in ** Pending confirmation by new Government in February 2015, with a capacity of 22000 MW. coming weeks. Investment up to $3.6 billion I 2 REM 2020 I July 2, 2020 I Ali Hached

  3. Renewable Energy Programs Sonatrach is fully in line with the National Renewable Energy Strategy. The Energy Transition is part of these main strategic thrusts; it is principally based on solar energy development. 2 Solar photovoltaic programs 1.3 GW 1 GW PV power stations connected to the national PV power plants connected to power grid (Prime Minister’s mandate) and Sonatrach sites conditioned by the implementation of associated regulations I 3 REM 2020 I July 2, 2020 I Ali Hached

  4. Sonatrach is implementing a 1.3 GW Photovoltaic solar 1.3 GW Photovoltaic Solar Power power plant program with the objectives of: Plant Program (Sonatrach)  Produce electricity from a new source at an optimum  This program concerns the integration of cost . photovoltaic solar power plants, first and  Gas saving volumes, i.e. nearly 600 million m3/year . foremost, into E&P power grids.  To commit to the strategic axis of development of  An initial assessment has shown a potential of renewable energies. 1.3 GW which could satisfy nearly 80% of Sonatrach’s electricity needs. for the implementation of this program:  Technico-economic studies to assess the  Identification of sites: a critical step in realizing the project profitability of each project based on :  Preparation of Tender Documents.  Technical solution  Price of solar photovoltaic electricity compared to conventional electricity produced African Development Bank support by gas turbines.  Valuation of gas to save. Agreement with Electricity and Gas Engineering Company (CEEG) Partnership projects Key figures  Investment: $700 to $800 million Sonatrach-Eni partnership  Electricity produced: ~ 2.2 TWh/year  Signature of a new MoU (in April 2020).  Gas savings: ~ 600 million m3/year Sonatrach-Total partnership  New MOU under discussion. I 4 REM 2020 I July 2, 2020 I Ali Hached

  5. The update of the 2015 renewable energy program was initiated in relation to:  The decrease of costs for the photovoltaic and wind energy technologies considered to be mature. As renewables become cheaper, the current program seems more realistic and should be carried out at the best cost conditions.  A better understanding of the different technologies and of the national potential in renewable energies.  The persistent high costs of the CSP sector and it’s lower maturation.  The completion of consistent and attractive regulations for investors in the public and/or private sector.  The revision is based on the large-scale development and in priority of the photovoltaic and wind technologies and by integrating biomass, cogeneration, geothermal energy solar thermal progressively.  The accelerated development of renewable energies could contribute to reduce domestic gas demand and consolidate gas exports. I 5 REM 2020 I July 2, 2020 I Ali Hached

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