Electricity Production
The activity of electricity production is open to competition in accordance with current legislation and the provisions of Law No. 02-01.
New electricity production facilities are built and operated by any natural or legal person, whether private or public, holding an operating authorization.
General Regime
The rights and obligations of electricity producers are defined in Executive Decree No. 06-429 of 5 Dhou El Kaada 1427, corresponding to November 26, 2006, setting out the specifications for the rights and obligations of electricity producers.
Special Regime
Operating License
The procedure for granting licenses for electricity production installations is defined by Executive Decree No. 06-428 of November 26, 2006.
Electricity production installations are subject, prior to their construction, to an operating license. The following installations are concerned:
- Any electricity production installation whose energy is intended for commercialization.
- Any modification or extension of an existing installation resulting in an increase of more than 10% of the installed capacity.
- Any capacity extension of the installation that shifts from a declaration regime to a licensing regime.
Any producer must comply with the specifications related to the rights and obligations of the electricity producer as outlined in Executive Decree No. 06-429 of November 26, 2006.
Installations for Self-consumption
Electricity production installations whose energy is intended for self-consumption are subject to the operating license regime if:
- The installed capacity of the installation is greater than or equal to 25 MW. • Any modification or extension of an existing installation that results in an increase of more than 10% of the installed capacity. • Any capacity extension of the installation that shifts from a declaration regime to a licensing regime.
- The safety and security of electricity networks, installations, and associated equipment.
- Energy efficiency.
- The nature of primary energy sources.
- The choice of sites, land use, and utilization of public domains.
- Compliance with environmental protection regulations.
- The technical, economic, and financial capacities, as well as the professional experience of the applicant and the quality of their organization.
- Public service obligations regarding the regularity and quality of electricity supply, as well as the supply of clients who are not eligible customers.
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- Application Form for Operating a Power Generation Facility:
- A justification concerning the integration of the new installation into the electricity grid, aimed at establishing its contribution to fulfilling public service obligations regarding the quality and reliability of electricity supply.
- Download the application form for an operating license for power generation installations (PDF type).
- Impact of integrating the new installation on the approved electricity and gas transmission network development plans, based on its location and its relationship to consumption centers.
- Technical, economic, and financial capacities, as well as the professional experience of the applicant and the quality of their organization.
- Main characteristics of the installation, including the unit capacities of the generators, the primary energy used, energy efficiency, the operating mode of the installation, and the destination of the produced energy.
- Safety and security of the networks, installations, and associated equipment.
- Environmental impact study.
- Hazard study.
- Commitment of the applicant to adhere to the terms set out in the electricity producer’s rights and obligations as defined in the regulations.
- Location plan of the installation, to scale.
- Any other information that the applicant believes is useful to support the application.
This request for authorization should be submitted to the Electricity and Gas Regulatory Commission (CREG) in 6 copies to the following address:
Commission de Régulation de l’Électricité et du Gaz (CREG)
Direction des Autorisations et des Energies Renouvelables
Ministry of Energy and Mines Building (Tour B)
Val d’Hydra – Algiers – Algeria - Application Form for Operating a Power Generation Facility:
- The CREG (Electricity and Gas Regulatory Commission) first conducts a preliminary review of the application within a period not exceeding ten (10) days from the date of its submission.
- At the end of this period, if the application is deemed compliant, the CREG issues an acknowledgment of receipt.
If necessary, the CREG returns the file to the applicant for compliance.
- The CREG makes a decision on the operating license application within a period not exceeding four (4) months from the date of acknowledgment of receipt.
During this period, the CREG may request additional information from the applicant.
The following are excluded from the scope of Executive Decree No. 06-428:
- Installations intended for self-consumption, with a total installed capacity of less than twenty-five (25) MW, under ISO conditions.
- Modifications or capacity extensions of existing power generation installations, where the additional energy capacity increases by less than ten percent (10%), are exempt from the operating license requirement. They must, however, be subject to a prior DECLARATION to the regulatory commission, which will verify compliance with Law 02-01.
- Electricity production equipment used as a backup, with an installed capacity of less than 1 MW.
Common Regime
Special Regime
Access to the special regime is exclusively through tendering, and every producer will be governed by one of the two regimes depending on the nature of their electricity production.
Declaration of an Electricity Production Installation
The procedure for granting declarations for electricity production installations is defined by the order of April 2, 2007.
Installations subject to the declaration regime are as follows:
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- Installations whose energy is intended for self-production and whose installed power (under ISO conditions) is less than 25 MW.
- Modifications or extensions to existing installations with an initial power greater than or equal to 25 MW, where the additional power does not exceed 10% of the initial power.
- Modifications or extensions to existing installations with an initial power less than 25 MW, where the total power (initial and additional) does not exceed 25 MW.
- Any change in the operator or transfer of assets of a declared installation.
→ The installed power of an electricity production installation is understood as the sum of the nominal powers, under ISO conditions, of all production equipment installed on the same site.
- Le formulaire de déclaration renseigné et signé :
→ Télécharger le formulaire de demande de déclaration des installations de production d’électricité (type.PDF). - Plan de l’installation ;
- Schéma unifilaire de l’installation ou le schéma de raccordement au réseau pour les installations concernées ;
- Registre de commerce ou statuts de la société ainsi que des pouvoirs d’engagement du signataire de la déclaration lorsque son nom ne figure pas dans le registre de commerce ou sur les statuts de l’entreprise
- Tout complément d’information que la CREG peut demander en vue de clarifier les données transmises par le producteur ;
- Tout autre document que le producteur juge utile.
- Cette demande d’autorisation devra être adressée à la commission de régulation de l’électricité et du gaz en 06 exemplaires à l’adresse suivante :
Commission de Régulation de l’Electricité et du Gaz (CREG)
Direction des Autorisations et des Energies Renouvelables
Immeuble du Ministère de l’Énergie et des Mines (Tour B)
Val d’Hydra – Alger – Algérie
Sont exclus du champ d’application de la procédure de déclaration :
- Les installations de production de l’électricité utilisées en secours et dont la puissance installée est inférieure à 1 MW ;
- les installations de production dont la puissance cumulée est inférieure à 15 MW (Conditions ISO) desservant les RIS.
Access to Networks
The producer must submit a connection request to the relevant transport or distribution network, depending on the case.
The producer must provide the gas transport network manager and the electricity system operator with all necessary information for connection studies, the costs of which are to be borne by the producer.
The producer will bear the connection costs for the electricity and gas networks as follows:
- The connection to the electricity transport network is the responsibility of the electricity transport network manager up to a limit of 50 km. Beyond this distance, the producer will be responsible for the additional connection costs.
- The connection to the gas transport network is the responsibility of the gas transport network manager up to a limit of 50 km. Beyond this distance, the producer will be responsible for the additional connection costs.
- The connection to the electricity distribution network (interconnected or isolated) is the responsibility of the electricity distributor up to a limit of 5 km. Beyond this distance, the producer will be responsible for the additional connection costs.
In case of refusal of access, the network managers and/or operators must publish the reasons and notify the applicants.
Frequently Asked Questions
I want to build a power plant using renewable energy sources. What should I do to access the benefits granted by the State?
Investors wishing to benefit from the incentives provided by the State for the use of renewable energy in electricity production are required to respond to the calls for tenders issued by the Ministry of Energy or by the CREG when the annual capacity is between 10 and 20 GWh per site. Any project developed outside of this system will not be eligible for encouragement, nor will it have the guarantee of selling the produced electricity.
The procedure for the calls for tenders is described in Decree 17-98.
In the event of a change of owner, does the power generation facility retain its operating license?
In the case of a change in the holder of the operating license, both parties involved must jointly submit a request to the Electricity and Gas Regulatory Commission (CREG) to transfer the operating license for the facility.
This request must include the following information:
- The technical, economic, and financial capacities, as well as the professional experience of the new applicant and the quality of their organizational structure;
- Any other relevant information that the new applicant deems useful to support the request—without prejudice to any additional information the CREG may request to assess the application.
The CREG makes a decision on the transfer within two (2) months from the date of the acknowledgment of receipt of the required information.
Does my facility retain its operating license in the event of an extension?
If the modification or extension of the facility results in an increase of more than 10% of the installed capacity, or if the new capacity after extension exceeds 25 MW under ISO conditions.
I want to build an electricity production plant. What documents must I submit to the CREG?
If the planned facility has a capacity of less than 25 MW (under ISO conditions) and the electricity produced is used for your own needs without any connection to the grid for injection, you must declare your installation in accordance with the ministerial order of April 2, 2007, setting the procedure for declaring electricity production facilities.
If your facility has a capacity greater than 25 MW under ISO conditions or if the electricity is injected into the transmission or distribution grid, you must request an operating license by following the procedure described in Decree 06-428 of November 26, 2006, which sets the procedure for granting operating licenses for electricity production facilities.
What is the purpose of the guarantee of origin certificate?
The guarantee of origin certificate is a document issued by the CREG, and it serves to prove that the electricity produced and injected into the grid is indeed from a renewable source.
The conditions for its issuance are based on the meters that the producer must install in the plant.
The procedure is described in Executive Decree 15-69 of February 11, 2015, which sets the terms for certifying the origin of renewable energy and the use of these certificates, as well as Decree No. 17-167 amending and supplementing it.
Can I access the benefits granted by the State for electricity production using renewable energy sources without responding to calls for tenders?
The regulations in force, particularly Executive Decree 17-98 (which outlines the tendering procedure for the production of renewable or cogeneration energy and their integration into the national electricity supply system), define the call for tenders as the sole mechanism for granting State incentives. These incentives include the guaranteed sale of electricity at the prices determined through the tender process.
Any project developed outside of this system cannot be supported or benefit from the guarantee of selling the electricity produced.
I want to modify my installation without increasing its capacity does it retain its operating license?
Modifications to the main characteristics of an existing installation, other than an increase in capacity, must be reported to the Electricity and Gas Regulatory Commission (CREG) before implementation. Depending on their significance, these modifications may require, as the case may be, either a new operating license application or a declaration.
If a new license is deemed necessary, the Electricity and Gas Regulatory Commission will notify the applicant within ten (10) days of the additional information required to supplement the original license application.
Can a Guarantee of Origin certificate be requested before responding to a call for tenders?
Only the successful bidders, whether through investor-based or auction-based calls for tenders, may request the Guarantee of Origin certificate.
Can an operating license be requested before responding to a call for tenders?
An operating license is required for any electricity production facility intended to inject power into the grid or for a self-production facility with a capacity greater than 25 MW.
However, access to the benefits granted by the State for the promotion of renewable energies is subject to the call for tenders process. In this case, it is not necessary to request the operating license beforehand.
Associated Regulation
Law 02-01 of 22 Dhou El Kaada 1422 (corresponding to February 5, 2002) governs activities related to electricity and gas distribution through pipelines in Algeria. It establishes the legal framework for the production, transmission, distribution, and commercialization of electricity and gas. The law aims to organize and regulate these sectors to ensure a reliable and high-quality supply while promoting competition and protecting consumer rights. It also sets out the conditions for network connections, the obligations of operators, and the regulatory mechanisms enforced by the competent authorities.
Law No. 04-09 of 27 Joumada Ethania 1425 (corresponding to August 14, 2004) concerns the promotion of renewable energy in Algeria within the framework of sustainable development. It establishes the principles and measures aimed at encouraging the use of renewable energy sources to diversify the country’s energy resources, reduce dependence on fossil fuels, and minimize environmental impact.
Executive Decree No. 21-431 of 28 Rabie El Aouel 1443 (corresponding to November 4, 2021) amends Executive Decree No. 13-218 of 9 Chaâbane 1434 (corresponding to June 18, 2013), which set the conditions for granting premiums for electricity production diversification costs. This amendment introduces significant adjustments to the premium scheme, addressing developments and needs in the electricity sector.
Executive Decree No. 21-158, dated April 24, 2021, modifies Executive Decree No. 17-98 of February 26, 2017. The latter established the tendering procedure for the production of renewable energy or cogeneration in Algeria and their integration into the national electricity supply system.
Executive Decree No. 17-204 of June 22, 2017, supplements Executive Decree No. 17-98 of February 26, 2017, by establishing additional provisions regarding the tendering procedure for the production of renewable energy or cogeneration and their integration into the national electricity supply system.
Executive Decree No. 17-186 of 8 Ramadan 1438 supplements Executive Decree No. 06-428 by setting additional provisions regarding the procedure for granting operating authorizations for electricity production facilities.
Executive Decree No. 17-166 of 25 Chaâbane 1438 amends and supplements Executive Decree No. 13-218 of 9 Chaâbane 1434 on the conditions for granting premiums for electricity production diversification, in accordance with the law and government directives.
This decree introduces amendments and additions to Executive Decree No. 15-69 of 21 Rabie Ethani 1436 (corresponding to February 11, 2015), which establishes the certification procedures for the origin of renewable energy and the use of these certificates.
Executive Decree No. 17-168 of 25 Chaâbane 1438 (corresponding to May 22, 2017) amends and supplements Executive Decree No. 15-319 of Aouel Rabie El Aouel 1437 (corresponding to December 13, 2015). This decree defines the operating procedures of Special Allocation Account No. 302-131, entitled “National Fund for Energy Management, Renewable Energy, and Cogeneration.” The fund was created to support initiatives aimed at improving energy efficiency and promoting renewable energy in Algeria. The decree specifies the conditions for using the fund’s resources, the eligibility criteria for funded projects, as well as the mechanisms for monitoring and evaluating supported initiatives.
Executive Decree No. 17-98 of 29 Joumada El Oula 1438 (corresponding to February 26, 2017) defines the tendering procedure for the production of renewable energy or cogeneration and their integration into the national electricity supply system. This decree establishes the rules and necessary steps to select projects that will contribute to diversifying the country’s energy sources by promoting renewable energy and cogeneration. It aims to ensure an efficient energy transition and to optimally integrate these new energy sources into the national electricity grid.
Executive Decree No. 16-121 of April 6, 2016, amends and supplements Executive Decree No. 15-319 of December 13, 2015, which defines the operating procedures of the “National Fund for Energy Management, Renewable Energy, and Cogeneration.”
Executive Decree No. 16-52 of 22 Rabie Ethani 1437 (corresponding to February 1, 2016) establishes the technical standards for electricity production, aiming to ensure its proper operation and safety.
Executive Decree No. 15-319 of December 13, 2015, establishes the operating rules of the “National Fund for Energy Management, Renewable Energy, and Cogeneration.”
Executive Decree No. 15-69 of 21 Rabie Ethani 1436 (corresponding to February 11, 2015) establishes the certification procedures for the origin of renewable energy and the use of these certificates. It defines the necessary procedures and criteria to ensure the traceability and authenticity of renewable energy sources, as well as the use of the corresponding certificates within the framework of energy and environmental policies.
Executive Decree No. 13-218 of 9 Chaâbane 1434 (June 18, 2013) establishes the conditions for granting premiums aimed at supporting the costs of electricity production diversification in Algeria. This legislative text is part of a series of measures adopted by the Algerian government to encourage the integration of renewable energy and other non-conventional electricity production sources into the national energy mix.
Executive Decree No. 11-423, dated 13 Moharrem 1433 (December 8, 2011), establishes the operating procedures of the special allocation account No. 302-131, entitled “National Fund for Renewable Energy and Cogeneration.” This decree was published in the Official Journal No. 68 on December 14, 2011. The primary objective of this decree is to structure the financing and support of projects related to renewable energy and cogeneration in Algeria.
The institute’s mission is to promote research, development, and training in the field of renewable energy in Algeria. It aims to strengthen national capacities in green technologies by supporting innovative initiatives and facilitating scientific and technological cooperation.
Executive Decree No. 09-25, enacted on Moharram 28, 1430 (corresponding to January 25, 2009), sets out the tools and methodology for developing the indicative program of electricity production needs in Algeria. This decree aims to regulate and organize the planning of electricity production to effectively meet the country’s energy needs while ensuring optimal resource management.
This order, dated Rabi’ al-Awwal 7, 1438 (corresponding to December 7, 2016), supplements the order of Dhu al-Qa’dah 6, 1435 (corresponding to September 1, 2014), which establishes the guaranteed purchase tariffs and the conditions for electricity produced through cogeneration.
This order, dated Rabi’ al-Awwal 7, 1438 (corresponding to December 7, 2016), supplements the order of Rabi’ al-Thani 2, 1435 (corresponding to February 2, 2014), which establishes the guaranteed purchase tariffs and the conditions for wind-generated electricity.
This order, dated Safar 22, 1438 (corresponding to November 22, 2016), supplements the order of Rabi’ al-Thani 2, 1435 (corresponding to February 2, 2014), which establishes the guaranteed purchase tariffs and application conditions for electricity produced from photovoltaic solar installations.
The interministerial order of December 22, 2016, defines the classification of revenues and expenditures chargeable
This interministerial order, dated Rabi’ al-Awwal 22, 1438 (corresponding to December 22, 2016), details the
Commission (CREG). This decision sets out the guidelines and steps that electricity producers must follow to declare their installations to the CREG. The objective is to ensure that all electricity generation installations comply with applicable standards and regulations, thereby ensuring the safety, reliability, and efficiency of the national power grid.
Decision D/04-23/CD of May 14, 2023, approves the procedure for processing applications for guarantees of origin certificates for photovoltaic installations. This decision establishes a specific framework for the submission, review, and issuance of certificates certifying that the electricity produced originates from photovoltaic sources.
