Study on local economic development through renewable energies projects in Algeria

The results of a study on local economic development through renewable energy (RE) projects in Algeria, developed within the framework of the Algerian-German Energy Partnership, were presented and discussed on December 16, 2018, during a workshop at GIZ in Algiers.

The study is based on two different RE development scenarios for Algeria: The first scenario assumes that RE capacities will develop in a linear way over time between 2018 until meeting the 22.000 MW target in 2030. A version of this first scenario acts on the assumption that the percentage of local inputs for RE project in Algeria will increase more rapidly than assumed by scenario 1.1. The second scenario assumes that RE development in Algeria starts off slowly but gains pace over time and still meets the 22.000 MW at the horizon 2030.

For either of both scenarios, the study finds that around 113.000 direct and indirect jobs (full-time equivalent) will be created on a national level by the implementation of Algeria’s Programme National RE programme until 2030. For the version of the first scenario assuming a rapid rise in use of local inputs, the study even estimates a job creation of about 137.000 direct and indirect jobs (full-time equivalent). In any of the cases considered, positive effects on the local labour market are considerable.

These results assume that the targets set in the RE development program will be achieved within the set time frame, and that at all stages a sufficient supply of skilled labour is available. Certainly, such an impact on employment, must be accompanied by corresponding policy measures and create a favourable development framework. Thus, the development of RE can have a positive impact, particularly with regards to the strengthening of the private sector and the creation of small and medium-sized enterprises, provided it is supported by appropriate accompanying measures.

The study will be available for download (in French language) on this website shortly.