Policies

Law 04-92 on the Diversification of Power Generation Costs (REFIT)

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 12 May 2014

Feed-in tariff mechanism was introduced in Algeria to speed up renewable energy deployment and help government to diversify its national energy mix. It is a main financial mechanism supporting government in achieving renewable goals set in “Renewable Energy and Energy Efficiency Development Plan  2011-2030”. 

Law 04-92 was created on the basis of previously established Law 02-01 creating a legal framework for feed-in tariff scheme.

Feed-in tariff entered into force in spring 2004 being a first REFIT system in Africa. 

Law 04-92 obliges renewable system operator to connect power plant to the national grid. RES-E purchase is guaranteed up to the national quota (set per project per year). Purchaser of the RES-E is a state-owned utility Sonelgaz. 

Feed-in tariff levels diversify in between technologies.

Technologies eligible to benefit from the scheme: hydropower, wind, CSP, PV, solar thermal, cogeneration, waste to energy and hybrid plants.

Plants with generation capacity ? 50 MW are eligible for REFIT.

Feed-in tariff is a premium paid per kWh above a base tariff (average annual electricity price in Algeria). REFIT is expressed as a percentage of the base electricity tariff.

Feed-in tariff levels in Algeria:

  • Hydropower: 100%
  • Wind: 300%
  • Solar PV: 300%
  • CSP: 200%
  • Solar thermal: 200%
  • Waste to energy: 200%

Feed-in tariff levels for hybrid technologies: For CSP, where the solar is only a portion of a plants generation, the tariff is reduced by the following amounts: 

  • >25%: 280%
  • 20 < 25% 180%
  • 15 < 20%: 160%
  • 10 < 15%: 140%
  • 5 < 10%: 100%

 

 

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