Algeria

Index rank 88

Balance Score

CCC

Energy Sustainability Index Rankings and Balance Score

 2011  2012  2013  Trend Score
Energy Performance  67  78  81   
Energy Security  65  80  86  C
Energy Equity  61  63  68  C
Environmental Sustainability  75  77  74  C
         
Contextual Performance  109  96  99   
Political Strength  113  116  120   
Societal Strength  91  97  97   
Economic Strength  100  66  75   
         
Overall Rank  81  85  88  CCC
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Fossil Fuel Reserves

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Key Metrics

Industrial sector (% of GDP) 60.9
TPEP / TPEC  (net energy exporter) 3.96
Emission intensity (kg CO2 per USD) 0.38
Energy affordability (USD per kWh) n.a.
GDP / capita (PPP, USD); GDP Group 7,272 (III)
Energy intensity (million BTU per USD) 0.16
CO2 emissions (metric tons CO2 per capita) 2.87
Population Access to Electricity (%) 99.3
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Index Commentary

Algeria slips three places in this year’s Index, but continues to balance the three sides of the energy trilemma fairly well. Performances on the energy security and energy equity dimensions see declines, mostly because of an increased economic dependence on fuel exports and rising household expenditures on electricity. Improvement on the environmental sustainability dimension is largely driven by reduced CO2 emissions from electricity generation, which are partially offset by a higher emission intensity. Algeria’s contextual performance remains weak, particularly its performances on the rule of law, effectiveness of government and political stability indicators, all of which have worsened. Macroeconomic stability continues to be relatively high, but the availability of credit in the private sector remains low.

Trends and Outlook

In recent years, Algeria has continuously developed its economy and improved its energy system. Energy policies have been implemented to intensify oil and gas exploration efforts to increase reserves, to promote renewable energy and energy efficiency and increase the share of renewables in electricity generation to 40% by 2030.

Policymakers should continue to focus on: 1) increasing the proportion of renewable energy in electricity generation; 2) the development of energy efficiency as there is a great potential for improvement; 3) the development of a renewable energy industry that is economically sustainable; and 4) the development and support of R&D and training to increase the transfer of knowledge and technology.