Short Background of the Fund

The Interministerial decree, dated Rajab 22, 1443 (February 23, 2022), establishing the revenue and expense nomenclature for special account No. 302-131, titled the National Fund for Energy Management and Renewable Energies and Cogeneration (FNMEERC) (le Fonds National pour la Maîtrise de l’Énergie et pour les Énergies Renouvelables et de la Cogeneration) was published in the Official Gazette of the People’s Democratic Republic of Algeria No. 21, dated March 27, 2022. It was co-signed by the Minister of Energy Transition and Renewable Energies and the Minister of Finance.

The aim of FNMEERC is to finance actions and projects that promote energy efficiency and the development of renewable energy, both connected and not connected to the national electricity grid and cogeneration. This National Fund was created within the scope of the National Energy Transition Program 2020 (le Programme National de Transition Energétique 2020). 

The energy transition holds a significant place in the government’s action plan, which focuses on “the triptych of economic renewal based on food security, energy transition, and the digital economy.” The energy transition program aims, in addition to diversifying energy sources through the development of renewable energies, to promote energy efficiency as a complementary action of great importance. The country thus aims to progressively free itself from dependence on conventional resources and initiate a dynamic of emergence of green and sustainable energy, locally available and abundant like solar energy. The approach is based on the following considerations: Preserving fossil resources and their valorization; Changing the energy production and consumption model; Sustainable development and environmental protection; Controlling the costs of implementing renewable energy installations.

The National Agency for the Promotion and Rationalization of Energy Use (APRUE) (L’Agence Nationale pour la Promotion et la Rationalisation de l’Utilisation de l’Energie) is tasked with the implementation and coordination of projects that benefit from the National Fund’s allocations. It also manages the application process for funding, providing forms and guidance to applicants, and ensures that the financial benefits are used according to the legislative and regulatory procedures. Additionally, APRUE is responsible for the annual coordination of specific projects and actions financed by the National Fund, as outlined in conventions established with the Ministry of Energy Transition and Renewable Energies. The Ministry of Energy Transition and Renewable Energies (MTEER) was established in 2020 and APRUE was transferred under its authority in 2021.

All legislative developments are meticulously cataloged in chronological order within the document titled “Collection of Legislative and Regulatory Texts Related to Renewable Energies and Energy Efficiency, Edition 2023” published by the Renewable Energy and Energy Efficiency Commission (CEREFE) on January 2, 2024.

The National Fund is designed to support a wide range of initiatives:

Renewable energies and cogeneration:

• Endowments allocated for financing actions and projects aimed at promoting renewable energies and cogeneration connected to the national electricity grid:
• Projects for electricity production from renewable energy sources and/or cogeneration systems,
• Purchase of equipment intended for electricity production from renewable energy sources and/or cogeneration systems, 
• Pilot projects and demonstration operations related to renewable energies and/or cogeneration systems,
• Capacity-building activities related to renewable energies and/or cogeneration systems,
• Studies related to the development and implementation of national strategies for electricity production from renewable energy sources and/or cogeneration systems,
• Prospecting and evaluation of the potential of renewable energy sources and/or cogeneration systems to identify sites eligible for the installation of electricity production plants from renewable energy sources,
• Endowments allocated for compensation related to the additional costs incurred by electricity production from renewable energy sources and/or cogeneration systems.
• Endowments allocated for financing actions and projects aimed at promoting renewable energies not connected to the national electricity grid:
• Acquisition and installation of equipment for energy production from renewable energies not connected to the national electricity grid,
• Studies and assessments of the needs for renewable energies for electricity and heat production not connected to the national electricity grid,
• Information, awareness, and popularization actions on the use of renewable energies, all sectors combined, not connected to the national electricity grid,
• Pilot projects and demonstrations for electricity production from renewable energies not connected to the national electricity grid,
• Training actions in the field of renewable energies not connected to the national electricity grid, all sectors combined,
• Monitoring of the implementation of projects and actions for renewable energies not connected to the national electricity grid.

Energy management:

Financing actions and projects included in the energy management program: 

• Actions included in the energy management program:
• Introduction of requirements, standards, and labels for energy efficiency,
• Awareness-raising, communication, information, education, promotion, coordination, and training in the field of energy management,
• Research and development in the field of energy management,
• Support for industries to improve the energy efficiency of domestically manufactured equipment and appliances,
• Actions and assessments of energy efficiency potentials in various sectors,
• Development and monitoring of the energy management program,
• Management and monitoring of energy audits,
• Instruction, monitoring, and control of projects benefiting from resources from the national fund for energy management and renewable energies and cogeneration,
• Evaluation of the impact of projects on energy consumption,
• Development, publication, and dissemination of energy efficiency indicators.
• Projects included in the energy management program:
• Thermal insulation in buildings,
• Introduction and dissemination of efficient lamps and appliances,
• Efficient public lighting,
• Deployment of individual and collective solar water heaters,
• Conversion of light vehicles, industrial vehicles, and buses to LPG/C, NG/C, and dual fuel,
• Acquisition of light vehicles, industrial vehicles, and buses running on LPG/C, NG/C, and dual fuel,
• Support for the acquisition of electric vehicles,
• Support for the acquisition of electric vehicle charging stations for individuals,
• Introduction of energy-efficient equipment in all sectors,
• Decision support for energy audits and feasibility studies of projects,
• Pilot operations and demonstrations of energy management projects,
• Implementation of communication campaigns for projects included in the energy management program. 
• Provision of interest-free loans for energy-efficient investments not included in the energy management program. The decision to grant these loans must also specify the modalities for their recovery.
• Provision of guarantees for loans obtained from banks or financial institutions.
• Endowments allocated for pre-financing the acquisition of devices and equipment related to energy efficiency.

It should be noted that this special allocation account, the “FNMEERC,” was officially closed on December 31, 2022, by the 2022 Finance Law and replaced by a new financing mechanism, namely the Program Budget.
Since 2023, the financing of the National Energy Management and Renewable Energy Program, connected to the electrical grid, is provided by the program budget, which is a public fund allocated to the Ministry of Energy and Mines under the Finance Law.
To benefit from the financial aid and advantages offered under this program, interested candidates—whether individuals, from the tertiary sector, or industrial—will be able to register online through the new Digital Platform “PDIP” on its website: aprue.org.dz. APRUE will open public access to this platform on September 22, 2024. This platform will allow beneficiaries to submit their applications and receive confirmation, according to eligibility conditions set for each project.