Development Prospects for Electricity and Gas Sector in Algeria and Industrialization
2016 -2025
Rabah TOUILEB Director General of Strategy and Prospective - sonelgaz Algeria
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Summary
1. Sonelgaz and Subsidiaries1.1 Introducing Sonelgaz1.2 Main Fields of Activities of Sonelgaz Group Companies / Subsidiaries by Activities and
Equity Participations
2. Evolution of electric and gas systems Period 1962 -2015
3. Needs for Additional Capacities - Period : 2016-2025Evolution of National conventional Energy capacities between 2016 and 2025
4. Industrial Development/Partnership sector Energy and Industry4.1 Preamble4.2 Industrial Development Strategy4.3 Industrial Development Support Tools4.4 Structuring Technological Projects
5. Project under realization6. Finalized Partnership
5. Conclusion
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1.1 Introducing Sonelgaz
Sonelgaz, is the historical operator in the field of : Generation, transmission and distribution of electricity Transmission and distribution of gas by pipelines,
has been restructured from a vertically integrated company to aholding driving an industrial group consisting of several companiesand various trades. These companies undertake all operational activities.
The holding ensures steering through the definition andimplementation of the development strategy of its affiliates andtheir related activities.
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1.2 Main Fields of Activities of Sonelgaz Group Companies Subsidiaries by Activities and Equity Participations
Electricity and Gas works Research,EngineeringConstruction & Services
Generation, transmission & distribution of Power
Transportation & distribution of Gas by pipeline
Manufacture of Equipment
09 Participations39 SubsidiariesEnergy Industries 13 Subsidiaries
Industrial Activities 07 Subsidiaries
Works & Services 15 Subsidiaries
Institutional Security 04 Subsidiaries 09 Companies
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0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
1962 1969 1979 1989 1999 2009 2013 2014 2015
Evolution of installed capacity by technology (1962 – 2015 (MW)‐
TV TG CC Diesel Hydr. Hybride Eolien PV
Installed capacity by technology [Period 1962-2015 - MW]
8
0
20 000
40 000
60 000
80 000
100 000
120 000
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014
High voltage (miles) Medium voltage (miles) Low voltage (miles)
High voltage1 997
Medium voltage 8 981
Low Tension 5 105(miles)
1969
2015
High voltage 16 943
Medium voltage 85 450
Low Tension 103 000(miles)
1999
High voltage 7 727
Medium voltage52 708
Low Tension 62 722(miles)
Evolution of the lengthof the electricity transmission network by voltage level(1962‐2015)
km miles
2015
1979
High voltage3 516
Medium voltage15 016
Low Tension9 247(miles)
1989
High voltage6 345
Medium voltage 33 509
Low Tension 34 988(miles)
Evolution of the length of the electricity transmission network by voltage level [1962-2015 - mile and km]
9
0
10 000
20 000
30 000
40 000
50 000
60 000
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014
High pressure (miles) Medium pressure (miles) Low pressure (miles)
High pressure 365
Medium pressure147
Low pressure 850
(miles)
1969
2015
High pressure11 165
Medium pressure51 152
Low pressure0
(miles)
1999
High pressure 2 672
Medium pressure 9 161
Low pressure 392
(miles)
Evolution of the lengthof Gas transmission Network by pressure level(1962‐2015)
km miles
2015
High pressure 1 587
Medium pressure1 995
Low pressure 913
(miles)
1979
High pressure 2 249
Medium pressure 4 923
Low pressure 739
(miles)
1989
Evolution of the length of Gas transmission network by pressure level [ 1962-2015 – mile and km ]
10
Evolution of Electricity and Gas customers [ Periode 1962-2015]
0
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
9 000 000
1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014
Nombre de clients Electricité Nombre de clients Gaz
Electricité : 708 064 Gaz : 199 003
1962
2015
Electricité : 8 452 653Gaz : 4 584 168
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Electrification rate [Period 1962-2015 (%)]
30
40
50
60
70
80
90
100
1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014
1978(59%)
1998(86,2%)1988
(83,5%)
2008(98%)
2015(99,1%)
Evolution du taux d'électrification sur la période (1962 ‐ 2015) ‐ (%)
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Gaz Penetration rate [Period 1962-2015 (%)]
20,0
25,0
30,0
35,0
40,0
45,0
50,0
55,0
60,0
1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014
1978(24,5%)
1998(30,3%)
1988(27,3%)
2015(54,2%)
2008(42,2%)
1962(28,2%)
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Evolution of the National conventional Energy Capacities between 2016 and 2025 1/2
N° Description 2015 2025
1 Installed Capacity (MW) 17 240 34 125
2 Electricity Network (Transmission & Distribution) (in Miles) 205 394 323 540
3 Electricity Substations [400, 220 & 60 kV] (in Unit) 398 795
4 Gas Network (Transportation & Distribution) (in Miles) 56 510 118 922
5 Number of Customers Electrical Power (in millions) 8,4 12
6 Number of Customers Gas (in millions) 4,5 8,0
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The Development of Electrical Power distribution Networkfor the period 2015-2025, will require : 115 062 Miles in lines; 67 850 substations, and; 2 728 110 connections.
The Development of Gas Distribution Network for the period2014-2024, will require : 53 608 Miles of pipeline, and; 3 194 680 connections.
Evolution of the National conventional Energy Capacities between 2016 and 2025 (2/2)
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Development of Renewable Energy capacities over the period 2016-2025
MW
Realization in Partnership between Sonelgaz - Sonatrach - foreign partner
2016-2020 2021-2025 2016-2025
PV 400 3600 4000
Wind 100 1400 1500TOTAL 500 5500 5500
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4. Industrial Development in realization in Partnership between the sectors of the energy- Industry and foreign partner 1/5
4.1 Preamble:The strategy adopted by companies in the energy sector (includingSonelgaz) in partnership with the industry sector, is about implementinga series of industrial projects through partnership built upon enhancinglocal values as well as comparative benefits owned by our country.
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4.2 Industrial Development StrategyThe development strategy consists of : Favoring national integration in terms of capabilities for studies, services,works and manufacture as well as execution of projects; Undertaking all initiatives aiming at develop national capabilities for studies,services, works and manufacture relevant to execution, operation andmaintenance of structures; Developing the national and/or international partnership to favour theemergence of a national industrial network.
4. Industrial Development in realization in Partnership between the sectors of the energy- Industry and foreign partner 2/5
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4.3 Industrial Development Support Tools
Strategic Studies (technological choices relevant to national context, ..) ; Projects Design and Execution; Renewable Energies : Management and Studies for integration in the
electricity Network; Manufacture of Equipment (most appropriate drivers to the value chain) R&D to support projects.
4. Industrial Development in realization in Partnership between the sectors of the energy- Industry and foreign partner 3/5
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Manufacture of heat recovery steam generators and heat exchangers through national and international partnership;
Manufacture of high voltage transformers through international partnership ;
Manufacture of photovoltaic modules through international partnership ; Manufacture of MV cells, MV/LV - MV/MV substations, and
monitoring/controlling systems through international partnership; Manufacture of HV insulators through international partnership.
4.4 Structuring Technological Projects
4. Industrial Development in realization in Partnership between the sectors of the energy- Industry and foreign partner 4/5
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4.4 Structuring Technological Projects (2/2)
Regarding other equipment, it will be : Preferred the creation of businesses through a national and
international partnership Favored the emergence of local industries of equipment manufacture by
national companies, with or without, foreign partners.A special attention will be given to the maintenance of installations
through localizing the manufacture of spare parts of different type, sizeand technology.
4. Industrial Development in realization in Partnership between the sectors of the energy- Industry and foreign partner 5/5
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5. Project under realization : the GEAT Complex
Realization of the industrial complex for the manufacture of gas turbines, steam turbines,generators and associated control systems for combined cycle power plants.The project aims the manufacture of complex technology equipment in Algeria, inpartnership with General Electric-Company USA.
Project Display :
Plant n°1: Manufacture of 100 to 300 MW gas turbines; Plant n°2 : Manufacture of 50 to 160 MW steam turbines; Plant n°3: Manufacture of generators, which will be coupled to the turbines to
convert mechanical energy into electrical energy; Plant n°4 : Control systems manufacturing to equip turbines manufactured in plants
n°1 and n° 2.
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Project Main Data Name of the corporation: GENERAL ELECTRIC ALGERIA TURBINES "GEAT" Annual production level: 06 to 08 gas turbines « GT"; 03 to 04 steam turbines «ST»; 09 to 12 Generators «Gen» ; Control systems "CS" associated; Auxiliaries of GT & ST.
Investment amount: US $ 205 million; Working capital US $ 88 million; Contribution from shareholders 168 million US $; Debt: $ 125 million US (investment + working capital); Purchase guaranteed by subsidiaries of Sonelgaz four (04) GT, two (02) ST, six (06) generators and associated control systems for a period of ten (10) years; Jobs : 400 employees ; Distribution of share capital between shareholders Sonelgaz 51% - 49% GE
5. Project under realization : the GEAT Complex
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6. Finalized Partnership
Creation in partnership with Hyundai/Daewoo of an Engineering,Procurement and Construction Company (HYENCO) able toundertake projects :
Conventional Power Plant, Steam Turbines, GasTurbines and Combined Cycle CSP, Wind and PV Plants Others EPC’s
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7. Conclusion
The development strategy consists of : Favoring national integration in terms of capabilities for studies, services, works andmanufacture as well as execution of projects; Undertaking all initiatives aiming at develop national capabilities for studies, services, worksand manufacture relevant to execution, operation and maintenance of structures; Developing with the industrial sector, the national and/or international partnership to favourthe emergence of a national industrial network.
Pursuing its mission as the driver for development in the electricity and gas sector, thestrategy implemented by Sonelgaz through its subsidiaries, not only allows the availability ofenergy products under the best conditions of quality and service on the entire territory, butalso ensures the optimization of energy costs and guarantees the national supply. Moreover,it develops supportive industries that create wealth and jobs.
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