FACTORS OF INVESTMENT IN RENEWABLE ENERGY AND ENERGY EFFICIENCY IN ALGERIA

Abstract

Our paper aims to identify the most important factors determining companies’
decision to invest in the energy transition in Algeria. Energy transition has
been many governments’ main topic of interest over the last decades, climate
change has led many of them to establish long-term plans for a successful energy
transition; these plans aim to reduce greenhouse gas emissions following the
guidelines of the COP21. Through a quantitative approach, we have addressed
a questionnaire to different companies operating in Algeria and have obtained a
total of 117 responses. The results show that financial, technical and regulatory
factors have minimal impact on companies' decision to invest in renewable
energy and energy efficiency in Algeria. Further studies should explore other
investment factors to help accurately determine those that significantly impact
companies’ decisions to invest in Algeria’s renewable energy and energy efficiency.
Furthermore, targetting one sector at a time and exploring the alternatives of
foreign direct investment in renewable energy can result in higher efficiency.