IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v56y2016icp1150-1157.html
   My bibliography  Save this article

A new method for cost of renewable energy production in Algeria: Integrate all benefits drawn from fossil fuel savings

Author

Listed:
  • Akbi, Amine
  • Yassaa, Noureddine
  • Boudjema, Rachid
  • Aliouat, Boualem

Abstract

The high generation cost of renewable energy is one of the main barriers to their development and large-scale deployment. This is the case of Algeria, in which despite its significant renewable energy potential, more than 96% of electricity is generated with gas turbines to cover increasing national demand. This choice is also driven by the important natural gas reservoirs in Algeria in addition to the low cost of electricity that is generated by this fossil fuel. The purpose of this paper is to investigate the cost of electricity production from a renewable source, substituting conventional fossil fuel processes. An economic value can be captured through the trade of greenhouse gas emissions and the reallocation of fuel savings to export. This approach is particularly well supported considering the growing local demand for natural gas, threatening the country’s natural gas export capacity in which the economy of Algeria is tightly dependent. The conventional evaluation of the generation cost of electricity, using the Levelized Cost Of Electricity (LCOE) and the cost structure of electricity production is selected for comparing the cost of electricity generation from gas power and photovoltaic plants. The environmental benefits and their financial valuation mechanisms are discussed. To illustrate all these parameters, a case study of a photovoltaic plant with a capacity of one megawatt (1MW) installed in Algeria is presented and the potential benefits in terms of fuel savings and CO2 eq emission assessed.

Suggested Citation

  • Akbi, Amine & Yassaa, Noureddine & Boudjema, Rachid & Aliouat, Boualem, 2016. "A new method for cost of renewable energy production in Algeria: Integrate all benefits drawn from fossil fuel savings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1150-1157.
    • Handle: RePEc:eee:rensus:v:56:y:2016:i:c:p:1150-1157
    DOI: 10.1016/j.rser.2015.12.044
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032115014276
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2015.12.044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Meier, Paul J. & Wilson, Paul P. H. & Kulcinski, Gerald L. & Denholm, Paul L., 2005. "US electric industry response to carbon constraint: a life-cycle assessment of supply side alternatives," Energy Policy, Elsevier, vol. 33(9), pages 1099-1108, June.
    2. Odeh, Naser A. & Cockerill, Timothy T., 2008. "Life cycle GHG assessment of fossil fuel power plants with carbon capture and storage," Energy Policy, Elsevier, vol. 36(1), pages 367-380, January.
    3. Larsson, Simon & Fantazzini, Dean & Davidsson, Simon & Kullander, Sven & Höök, Mikael, 2014. "Reviewing electricity production cost assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 170-183.
    4. Sharma, Vikrant & Chandel, S.S., 2013. "Performance and degradation analysis for long term reliability of solar photovoltaic systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 753-767.
    5. Riva, Angelo & D'Angelosante, Simona & Trebeschi, Carla, 2006. "Natural gas and the environmental results of life cycle assessment," Energy, Elsevier, vol. 31(1), pages 138-148.
    6. Hondo, Hiroki, 2005. "Life cycle GHG emission analysis of power generation systems: Japanese case," Energy, Elsevier, vol. 30(11), pages 2042-2056.
    7. Roberto Dones & Xin Zhou & Chunxiu Tian, 2004. "Life Cycle Assessment (LCA) of Chinese energy chains for Shandong electricity scenarios," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 22(2/3/4), pages 199-224.
    8. Stoppato, A., 2008. "Life cycle assessment of photovoltaic electricity generation," Energy, Elsevier, vol. 33(2), pages 224-232.
    9. Pehnt, Martin, 2006. "Dynamic life cycle assessment (LCA) of renewable energy technologies," Renewable Energy, Elsevier, vol. 31(1), pages 55-71.
    10. Kannan, R. & Leong, K.C. & Osman, R. & Ho, H.K., 2007. "Life cycle energy, emissions and cost inventory of power generation technologies in Singapore," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(4), pages 702-715, May.
    11. Mr. Reinout De Bock & Mr. Jose G Gijon, 2011. "Will Natural Gas Prices Decouple From Oil Prices Across the Pond?," IMF Working Papers 2011/143, International Monetary Fund.
    12. Ueckerdt, Falko & Hirth, Lion & Luderer, Gunnar & Edenhofer, Ottmar, 2013. "System LCOE: What are the costs of variable renewables?," Energy, Elsevier, vol. 63(C), pages 61-75.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mounia Louhibi–Bouiri & Messaoud Hachemi, 2018. "Methane emissions from the Algerian natural gas pipelines transportation: Exploring process to reduce environmental consequences," Energy & Environment, , vol. 29(7), pages 1247-1262, November.
    2. Yuuki Sugano & Keisuke Sato & Naoki Fukata & Kenji Hirakuri, 2017. "Improved Separation and Collection of Charge Carriers in Micro-Pyramidal-Structured Silicon/PEDOT:PSS Hybrid Solar Cells," Energies, MDPI, vol. 10(4), pages 1-13, March.
    3. Bey, M. & Hamidat, A. & Benyoucef, B. & Nacer, T., 2016. "Viability study of the use of grid connected photovoltaic system in agriculture: Case of Algerian dairy farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 333-345.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Turconi, Roberto & Boldrin, Alessio & Astrup, Thomas, 2013. "Life cycle assessment (LCA) of electricity generation technologies: Overview, comparability and limitations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 555-565.
    2. Orfanos, Neoptolemos & Mitzelos, Dimitris & Sagani, Angeliki & Dedoussis, Vassilis, 2019. "Life-cycle environmental performance assessment of electricity generation and transmission systems in Greece," Renewable Energy, Elsevier, vol. 139(C), pages 1447-1462.
    3. Feng, Kuishuang & Hubacek, Klaus & Siu, Yim Ling & Li, Xin, 2014. "The energy and water nexus in Chinese electricity production: A hybrid life cycle analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 342-355.
    4. Mansouri, Noura Y. & Crookes, Roy J. & Korakianitis, Theodosios, 2013. "A projection of energy consumption and carbon dioxide emissions in the electricity sector for Saudi Arabia: The case for carbon capture and storage and solar photovoltaics," Energy Policy, Elsevier, vol. 63(C), pages 681-695.
    5. Karagiannis, Ioannis C. & Soldatos, Peter G., 2010. "Estimation of critical CO2 values when planning the power source in water desalination: The case of the small Aegean islands," Energy Policy, Elsevier, vol. 38(8), pages 3891-3897, August.
    6. Chicco, Gianfranco & Mancarella, Pierluigi, 2009. "Distributed multi-generation: A comprehensive view," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(3), pages 535-551, April.
    7. Gujba, H. & Mulugetta, Y. & Azapagic, A., 2010. "Environmental and economic appraisal of power generation capacity expansion plan in Nigeria," Energy Policy, Elsevier, vol. 38(10), pages 5636-5652, October.
    8. Sokka, L. & Sinkko, T. & Holma, A. & Manninen, K. & Pasanen, K. & Rantala, M. & Leskinen, P., 2016. "Environmental impacts of the national renewable energy targets – A case study from Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1599-1610.
    9. Song, Cuihong & Gardner, Kevin H. & Klein, Sharon J.W. & Souza, Simone Pereira & Mo, Weiwei, 2018. "Cradle-to-grave greenhouse gas emissions from dams in the United States of America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 945-956.
    10. Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2009. "Assessment of sustainability indicators for renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1082-1088, June.
    11. Strantzali, Eleni & Aravossis, Konstantinos, 2016. "Decision making in renewable energy investments: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 885-898.
    12. Weisser, Daniel, 2007. "A guide to life-cycle greenhouse gas (GHG) emissions from electric supply technologies," Energy, Elsevier, vol. 32(9), pages 1543-1559.
    13. Manfred Lenzen & Roberto Schaeffer, 2012. "Historical and potential future contributions of power technologies to global warming," Climatic Change, Springer, vol. 112(3), pages 601-632, June.
    14. Liu, Hongtao & Polenske, Karen R. & Xi, Youmin & Guo, Ju'e, 2010. "Comprehensive evaluation of effects of straw-based electricity generation: A Chinese case," Energy Policy, Elsevier, vol. 38(10), pages 6153-6160, October.
    15. Magrassi, Fabio & Rocco, Elena & Barberis, Stefano & Gallo, Michela & Del Borghi, Adriana, 2019. "Hybrid solar power system versus photovoltaic plant: A comparative analysis through a life cycle approach," Renewable Energy, Elsevier, vol. 130(C), pages 290-304.
    16. Nugent, Daniel & Sovacool, Benjamin K., 2014. "Assessing the lifecycle greenhouse gas emissions from solar PV and wind energy: A critical meta-survey," Energy Policy, Elsevier, vol. 65(C), pages 229-244.
    17. Alvarez, Sergio & Sosa, María & Rubio, Agustín, 2015. "Product and corporate carbon footprint using the compound method based on financial accounts. The case of Osorio wind farms," Applied Energy, Elsevier, vol. 139(C), pages 196-204.
    18. Odeh, Naser A. & Cockerill, Timothy T., 2008. "Life cycle GHG assessment of fossil fuel power plants with carbon capture and storage," Energy Policy, Elsevier, vol. 36(1), pages 367-380, January.
    19. Wu, X.D. & Guo, J.L. & Chen, G.Q., 2018. "The striking amount of carbon emissions by the construction stage of coal-fired power generation system in China," Energy Policy, Elsevier, vol. 117(C), pages 358-369.
    20. Hong, Sanghyun & Bradshaw, Corey J.A. & Brook, Barry W., 2014. "Nuclear power can reduce emissions and maintain a strong economy: Rating Australia’s optimal future electricity-generation mix by technologies and policies," Applied Energy, Elsevier, vol. 136(C), pages 712-725.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:56:y:2016:i:c:p:1150-1157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.