Sustainable Farming through Decentralized Energy Systems: Opportunities and barriers

The Promise of the WEF nexus approach in Algeria’s Energy Transformation

¹ Workgroup for Infrastructure Policy (WIP), Technical University of Berlin, 10623 Berlin, Germany
² Microenergy Systems (MES), Technical University of Berlin, 10623 Berlin, Germany
³ German Institute for Economic Research (DIW Berlin), 10117 Berlin, Germany

Abstract

Algeria heavily relies on fossil fuels, particularly oil and gas, leading to inadequate energy supply in rural areas. However, the country possesses vast agricultural land and abundant renewable energy resources like solar and wind. Due to the insufficient national electricity grid, rural farmers must resort to expensive and environmentally unfriendly diesel generators to meet their energy needs. To address this issue, decentralised energy systems are proposed as a solution to enhance energy resilience on Algerian farms. These systems can power irrigation pumps, lighting, and other electrical appliances on the farm. Furthermore, surplus energy generated by the PV systems can be sold back to the grid or used to offer paid energy services, creating a new revenue stream for farmers. This study evaluates the potential opportunities for implementing Decentralized and Distributed Renewable Energy Systems (DRES) on farms in Algeria. It will review current policies and regulations for microgrids in the country and present various scenarios for bottom-up energy transformation. This paper will identify the challenges and barriers Algerian farms face in energy, water, and agriculture practices. The findings will demonstrate how DRES can improve energy efficiency, reduce costs, increase the share of renewable energy, and enhance electricity supply reliability in Algeria. The study will provide practical guidance to policymakers and identify opportunities for integrating DRES on farms while suggesting future research directions in sustainable energy.