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

Country / jurisdiction: Algeria · Year: 2004 · Status: In force · Level: National · Type: Voluntary

This 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”.

The scheme 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.

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

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

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%

Official source: http://www.solarpaces.org/_Libary/AlgerianFeedInLaw.pdf