Developing the Value Chain for Municipal Renewable Energy and Energy Efficiency Projects in Algeria

Algerian municipalities face high electricity consumption, leading to significant costs for street lighting and public buildings. The “Green Municipalities” programme aims to improve energy management at the local level—reducing climate impact while enhancing financial sustainability. However, scaling up the use of renewable energy (RE) and energy efficiency (EE) technologies presents several challenges: municipalities often lack experience and financial incentives (demand side), while local enterprises struggle with quality assurance and have limited knowledge of innovative business models (supply side).

To address this, the programme supports both sides through four key outputs:

1. Implementation of RE and EE measures in four pilot municipalities (Bechar, Djelfa, Relizane and Souk Ahras);

2. Introduction of a digital energy management system in 40 municipalities;

3. Improvement of administrative conditions to ensure high-quality, sustainable RE/EE installations and services; and

4. Development of a regulatory framework and incentive system for the deployment of RE and EE.

Dorsch Impact contributes to Outputs 3 and 4, supporting long-term structural change for cleaner, more efficient municipalities. The project is implemented with consortium partners CESI Algérie Envidatec GmbH.