German-Algerian Energy Partnership

Projet description

Title: German-Algerian Energy Partnership
Commissioned by: Federal Ministry for Economic Affairs and Climate Action (BMWK) 
Country: Algeria
Lead executing agency: Ministry of Energy
Overall term: 2015 to 2023

Context

The German-Algerian Energy Partnership was founded in 2015 with the signing of a Joint Memorandum of Understanding. The Energy Partnership is the central instrument for institutionalised dialogue on energy policy between Germany and Algeria. It aims to contribute to the global energy transition and to support Algeria's progress in developing renewable energy sources. Despite considerable potential for renewable energy, especially solar and wind energy, the share of energy generation from renewable sources in Algeria is still low. In order to develop and implement a national energy policy for an environmentally sustainable energy supply, Algeria draws on Germany’s experience with the transition to renewable energy.

The project to support the German-Algerian Energy Partnership is part of the global programme on Supporting Bilateral Energy Partnerships in Developing Countries and Emerging Economies. GIZ supports the German Federal Ministry for Economic Affairs and Climate Action (BMWK) in implementing and conceptually developing energy partnerships (EP) and dialogue with Algeria, Brazil, Chile, China, Ethiopia, India, Jordan, Mexico, Morocco, South Africa and Tunisia. GIZ also supports the development of new dialogue structures with further developing countries and emerging economies.

Objective

Algeria builds up an environmentally sustainable energy supply using renewable energy sources and efficient energy technologies. A key area of activity is to create the regulatory framework to promote renewable energy and energy efficiency.

Approach

The areas of cooperation and thematic priorities of the Energy Partnership include:

• Further development and grid integration of renewable energy
• Establishment of support mechanisms for renewable energy
• Enhancement of energy efficiency in industry
• Macroeconomic modelling of long-term energy scenarios

A steering committee spearheaded by Germany’s BMWK and Algeria’s Ministry of Energy (MEM) is responsible for the Energy Partnership’s strategy. Stakeholders include representatives of the governments and state-owned energy agencies. Two working groups have been set up to focus on the topics of renewables and energy efficiency. Providing a platform for open collaboration, these working groups enable actors from industry, research, associations and initiatives to participate and share project experience.

Other key actors include:

• The German Federal Foreign Office (AA)
• The German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV)
• The German Federal Ministry for Economic Cooperation and Development (BMZ)
• The Algerian Electricity and Gas Regulatory Commission (CREG)
• State-owned energy supply companies Sonatrach and Sonelgaz

With the support of GIZ, two permanent secretariats have been set up in Algiers and Berlin. They serve as a first point of contact and platform for all stakeholders, providing information on the Energy Partnership’s activities.

Results

• Regular meetings of the steering committee and the working groups enable German and Algerian decision-makers to engage in policy dialogue. The highlight of the exchange is the annual German-Algerian Energy Day, where international energy policies and ways of achieving the Algerian and German energy transition are discussed.
• At the meetings of the Local Business Advisory Council on Energy Partnership, key issues of German companies in the Algerian energy sector are identified, discussed and then introduced into dialogue with the institutions of the Algerian energy industry. The Energy Partnership also uses other formats, such as studies or strategy workshops, to support the dissemination of knowledge on the economic impact of energy system transition.
• Study visits by Algerian delegations to Germany enable experience to be shared on specific topics and also contribute to creating a dynamic partnership. For example, one delegation travelled to Frankfurt to discuss grid integration of renewables with German institutions and companies and to benefit from their experience. Further study trips were successfully held on topics such as promoting energy efficiency in the Algerian economy and macroeconomic modelling of energy scenarios.

Last update: December 2022