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