The ambitious rural electrification programs initiated by the State are major and structuring vehicles of socioeconomic

Transcription

1 Rural Electrification in Algeria: Experience and Socio-Economic Impact Ms. Hamza Nadia / DGDT/ SONELGAZ n.hamza@sonelgaz.dz SUMMARY The ambitious rural electrification programs initiated by the State are major and structuring vehicles of socioeconomic development. As a result of their scale, these programs have significantly helped improve the living conditions of the people who benefited from them and gained access to electricity, an energy that symbolizes comfort, modernity and improvement in the performances of the economic sector. CONTENT 1 - Introduction 2 - Background 3 - Rural Electrification (RE) Programs -Arrangements for costs coverage -Retrospectives Prospects 4 - Socio-Economic Impact 5 - Conclusion This presentation aims to describe the different steps in the implementation of these programs, together with their socio-economic impact on rural communities.

2 1 - Introduction Energy is necessary for any human activity and essential for the satisfaction of many basic needs such as nutrition and health; the link between energy and poverty is undeniable. Thus, to fight against poverty, it is essential for people to have access to a modern energy source such as electricity. Indeed, access to electricity in rural areas is a matter of life quality, social equity and sustainable and economic development. In this context, an approach combining social utility and economic use was initiated based on a set of programs funded by the State in order to improve the living conditions of rural populations and the performance of the economic sector. This presentation goes into the background of rural electrification programs, their socioeconomic impact and the efforts made by public authorities to provide energy to different areas in the country. 2 - Background: Upon achieving independence, electrification in the country showed an extreme disparity between the different regions of the country, with a coastline and larger cities that were electrified, while the rest of the country, namely rural areas, lacked any form of energy. Thus, the Government was quick to perceive the importance of electrification as a vector catalyzing economic, social and cultural progress in rural areas. As a consequence, electrification actions were undertaken through national and special programs. By the mid 70s, the State accelerated the pace of rural electrification with a view to introducing electricity in all Algerian This resulted in the adoption of The National Electrification Plan (NEP). By the end of 1975, the electrification rate was of 53 percent; this overall rate included a strong regional disparity reflecting the socioeconomic imbalances that the NEP was to help resolve. Given the strategic significance of the NEP, it was funded through government allocation. From 2002 onwards, several national and regional programs were launched, with the contribution (up to 25% since December 2006) of the utilities of the Sonelgaz Group to the funding. 3 - Rural Electrification (RE) Programs: RE programs are national and regional programs developed by the Ministry of Energy and Mining with the participation of Wilayas and Sonelgaz utilities; their implementation modalities are as follows: Establishment of multiyear agreements with the State (Ministry of Finance, Ministry of Energy and Mining) and utilities of the Sonelgaz Group. Sonelgaz Group distribution Companies (project owner and prime contractor), as public authorities preferred instrument for the implementation of RE programs. Launching by Sonelgaz Group Distribution Utilities of multiyear tenders for studies and the provision of electrical distribution infrastructure. For the monitoring the implementation of rural electrification programs, two Committees established:

3 - An Inter-Ministerial Committee comprising representatives of the Ministries of Energy and Mining / the Ministry of Finance / the Ministry of the Interior and Local Communities and some Utilities of the Sonelgaz Group. - A National Committee made up of representatives of the Ministry of Energy and Mining and Utilities of the Sonelgaz Group. RE Program Funding: Funding of programs since December 2006: * State: 75% * Utilities of the Sonelgaz Group: 25% Before December 2006, the funding of programs was entirely provided by the State. It should be pointed out that electricity is supplied to 18 isolated villages in the Southern part of the country, as part of RE, through photovoltaic solar energy, which is financed by the State to the tune of 100 per cent Importance of RE programs under way: An electricity grid (MV/LV) of nearly 21,400km. Nearly 380,600 households to be connected to the grid. 16 villages and 51 solar centers are to be supplied with photovoltaic energy. 3-1: Retrospective Presentation of Annual Achievements from 2000 to 2010 YEAR Distribution network length (in Kms) Number of households connected (per units) ,639 27, ,044 28, ,315 41, ,350 37, ,741 24, ,007 25, ,133 20, ,849 15, ,358 31, ,676 28, ,852 22,757 TOTAL 32, ,795 Photovoltaic Electrification Program ( period): Some remote villages located in the south of the country (18 villages, nearly 900 households) have photovoltaic solar supply as part of RE. A second national program focuses on the provision of photovoltaic energy to 16 villages and 51 RE centers, located in the southern area of the country, totaling nearly 1,400 households to be connected; this program underway. These villages are characterized by a reduced number of households that are scattered, isolated and far from any communication network.

4 Development of the electrification rate from 1969 to 2010: In 1969, the national electrification rate in Algeria was of 40.0%; this overall rate included a significant regional disparity reflecting the socioeconomic imbalances that the NEP was to help resolve. The provision of electrical power to these regions through conventional methods (diesel, grid) would have raised the problem of routing fuel and, in the case of the grid, the building and maintenance of overhead lines. Daily consumption per household is limited to 2 kwh/day, representing the provision of power for lighting, for a refrigerator, a fan and an audio-visual device. National electrification rate increased from 61% in 1979 to 83.8% in 1989, and 98.6% in Over the period, the increase in national electrification rate highlights the Algerian Government s efforts as regards the electrification of all 3-2: Outlook for 2014: A new Rural Electrification (RE) Program was adopted by the Government. It consists in: - building a distribution network (Medium and Low Voltage) that is more than 21,000km long. - connecting more than 219,600 new homes to the grid. This new program aims to reach in 2014 a national electrification rate of 99%. 4 - Socioeconomic Impact: Algeria has embarked on an ambitious national electrification program which is favorably welcomed by people; a very strong demand for extension is permanently recorded, thus imposing frequent changes in the scale of these programs. As project owner and prime contractor, the subsidiaries of Sonelgaz have provided substantial research and implementation means to successfully complete these programs that have enabled to strengthen electricity grids, to reduce the number of underserved subscribers in rural areas. They have also contributed to the definition of the industrial strategy for the local production of key electrical materials (transformers, supports, cables... etc.) that are necessary for provision of distribution networks. In addition to the comfort consisting in the permanent availability electricity for domestic use, rural electrification has made the following possible: Opening isolated regions to the outside world through the installation of information and communication systems (TV - radio - telephone, Internet...). Creating home comfort by replacing candles, oil or gas lamps, thanks to a 98.6% electrification rate. Introducing audiovisual equipment and electrical home appliance in

5 Offering comfort in terms of public lighting and safety improvement for citizens Achieving sedentary lifestyle and settlement of populations in electrified villages and reduction in migratory movements. Emergence of small farm operations and small irrigated plots Installation of collective equipment such as dispensaries, schools, post offices, etc. Job creation by developing local businesses. Improved conditions and higher level of schooling for children Total or partial change in the lifestyle of isolated people Population settling dynamics namely characterized by the construction of solid structure for most Settlement dynamics through power supply to new households Creation of companies for electrical equipment study, production and manufacture on the national territory: Nearly 30 engineering departments Nearly 70 RE grid development companies 2 manufacturing units for concrete and metallic electric poles 1 circuit breaker and meter manufacturing unit 1 MV/LV transformer manufacturing unit Accreditation and opening of about fifty power equipment sales counters. 5 - Conclusion: The progress made by Algeria in the field rural electrification has been remarkable. It is based on a set of national and regional programs funded by the State. Their implementation is entrusted to the subsidiaries of Sonelgaz Group, as project owner and prime contractor. The implementation of these programs has made it possible: to reinforce existing power grids; to reduce the number of underserved subscribers in rural areas; to achieve a national electrification rate of 98.6%. Indeed, the evolution of the national electrification rate over 1969 (40%) (98.6) highlights the effort made by the State. Rural electrification has been the channel whereby innovation was introduced. Electricity is the vehicle for a social project of modernization of the rural man and the environment.