25 May 2016
WindEurope joins EU Commission to back European renewables in Algeria
On 24 May, WindEurope joined EU Energy and Climate Commissioner Miguel Arias Cañete and officials at an EU-Algeria Energy Business Forum in Algiers. The EU and Algeria have agreed to increase gas exports to Europe and to work together to expand renewables in the North African country. Algeria is targeting 5GW of wind and 13GW of solar by 2030.
The event was organised to connect European and Algerian businesses, who will work together to ensure its goals for renewable energy are met. WindEurope Chairman Francesco Venturini stressed the importance of a stable long-term policy vision and regulatory framework. He also highlighted the resulting risk for investors via long-term contracts.
Alain Kerboriou of Vestas urged Algeria to welcome foreign as well as local investments in wind. Today, Algeria refuses to accept foreign finance, but officials signalled to the EU that they may be ready to change this in order to secure financing for renewables from the European Investment Bank.
WindEurope CEO Giles Dickson stressed the importance of market volumes for wind energy. He urged a clear long-term strategy with sizable volumes for the wind industry so that investors could plan well in advance. He also reiterated the importance of stable regulatory frameworks in reducing the costs of capital.
Algeria has recently put in place a feed-in tariff (FiT) for wind of $9 cents / KWh. The country has no commercial scale wind installed today but there are plans to launch a first “call to investors” under the new FiT. This will not be an auction: the FiT is fixed. But the Commission is encouraging Algeria to move to an auction scheme as soon as possible.