Effectiveness of Replacing Fossil Energy Consumption with Renewable Energy in Algeria from 1990 to 2023

Abstract

In order to integrate renewable energy into the national energy policy, the Algerian
government signed the National Program for the Development and Expansion of Renewable
Energy in March 2011. This program aims to encourage the production of renewable energy from
various sources. To assess the current situation of energy consumption patterns in the Algerian
economy, a model was estimated to study the causal relationship between per capita renewable
energy consumption and per capita consumption of non-renewable energy for the period 1990-
2023.
During the mentioned period, the results confirmed the absence of a causal relationship in both the
long and short terms. Therefore, the same model was estimated for the period 2000-2023, and then
for the period 2010-2023, where a unidirectional causal relationship from per capita renewable
energy consumption to per capita non-renewable energy consumption emerged. This relationship
was influenced by the results of the National Program for the Development and Expansion of
Renewable Energy, which was initiated by the government starting in 2011. In general, the
Algerian economy is still in a phase of almost complete dependence on non-renewable energy and
needs to make significant efforts to transition to the second stage of energy transformation.