Financial Mechanism for Renewable Energy Sources on the Example of Algeria

Abstract

Goal – The purpose of this manuscript is to characterise the financing mechanisms for renewable energy projects in Algeria – government, international, private – in solar and wind energy, along with an assessment of their effectiveness. Research methodology – The effectiveness of financing sources was determined using a case study of the largest completed and contracted solar and wind power plant projects in Algeria and an analysis of national and international reports on the energy sector and renewable energy sources. Score/results – The forms of financing used in Algeria are effective in terms of the share of solar and wind energy in total renewable energy production, the per capita energy generated from RES, and the energy potential generated by built and implemented PPP RES installations. In contrast, areas such as the share of solar and wind energy in the country’s total energy mix and the implementation of a renewable energy development program for solar and wind energy are characterised by inefficiency. Originality/value – The article fills a research gap in the effectiveness of solar and wind energy financing sources in Algeria.