What repercussions would feel sustainable developement due to oil crisis
Wednesday, December 31st, 2014
Prof. Noureddine Yassaa , Director of the EPST CDER
The free fall of oil prices of more than 50 % since June 2014, has raised a lot of eyebrows as for its repercussions on the energy transition and more particularly on the deployment of renewables all over the world.
In this context, it’s usefull to notice that the part of oil in the electric production reprensents just 1 % in Europe and North America, and about 10 % in some developing countries, such as India. Indeed, the electric power plant run almost entirely with gas the prices of which are already decreasing and are following another mode of market.
Beside, it should be noted that the fall in oil prices affects the profitability of hydrocarbons of non conventional source the production cost of which is upper from 3 to 6 times the operating cost of conventional hydrocarbons. Therefore, the development of the renewable energies is not directly concerned.
Certain measures of reduction of subsidies on the fossil energy which amount to 550 billion dollars in the world, taken by certain countries (Mexico, Malaysia, Venezuela, Taiwan), could favor the development of the renewable energies which deploy without subsidies in several countries (Germany for example).
The fall of oil prices could contribute in the relaunch of the market of carbon to feed the green fund climate discussed for a long time during the COP of Lima on climate change to commit actions allowing to maintain the global warming in 2°C.
In Algeria, the energy efficiency and the energy enconomy should have their own places within the actual situation of the fall of oil prices. AS such, the Ministery of Energy will present soon a new program in order to promote the energy efficiency and to fight against the wasting of energy in all sectors. The heat insulation and the promotion of the use of solar water heaters and solar air conditioners in the sector of the building, the transition towards light fuels (LPG, GLC, GNL) and a rigorous control of the use of the energy-consuming equipments (domestic, transport) are so many actions allowing to protect our energy resources.
Besides, in spite of the oil prices fall, and in an effort to diversify and to secure our energy resources, the Algerian government was anxious to specify in the last Council of Ministers,that he continues to encourage the development of the new and renewable energies.
Prof. Noureddine Yassaa , Director of the EPST CDER
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