Algeria is a major producer of fuels and natural gas, and almost all energy consumed within the country is also based on fossil fuels. As to diversify its energy mix, Algeria decided on a plan to build 22 GW of renewable energy capacity until 2030 and started to build small-scale solar power plants (425 MW by 2017). This development of renewable energies is expected to have significant effects on economic growth and creation of employment at a national level.

Algeria and Germany cooperation on the development of an advanced model combining energy and macroeconomic effects so as to furnish a model to the Algerian experts which allows them to respond quickly and in detail to future demand for analysis from decision makers, relating to macroeconomic effects of energy mixes including ambitious renewable energies targets.

The objective of the first project phase is therefore to develop a basic model for the Algerian case, and to train Algerian experts in using it. Thereafter, the model can be extended to other research and policy issues, as it allows for a certain flexibility.

During this second workshop, status and progress of the modeling project were analyzed. Partners from both sides have agreed upon the terms of reference for the international experts that will accompany the modeling project and have defined the project teams.

A third workshop for the presentation of the team of international experts and the decision on a specific model have been organized was organized on December 17, 2018.