Although renewable energies are beginning to gain ground in Algeria, fossil fuels will account for almost all of Algeria’s total primary energy consumption in 2024, and so far only 4 .1% of installed energy capacity comes from renewable energy resources, namely wind, hydro and photovoltaic. The Algerian government is striving to diversify the energy mix and aims to increase the share of electricity generated from renewable energy resources to 15,000 MW by 2035. Through these climate commitments, Algeria aims to reduce its energy consumption by 7% by 2030.
Renewable energy advocates have largely focused on R&D, cost-competitiveness and the politics of renewable energy deployment. But the social dimension of the energy transition plays an equally crucial role: as we phase out polluting energy sources, we must ensure that the workers who have exploited fossil fuels for decades are not left behind.
Thus, oil companies that are also unanimous in agreeing that a transition is inevitable, given that most of the world’s nations are committed to achieving zero net carbon emissions by 2050, now face a dual challenge: not only will they have to adapt to i) survive the ongoing energy transition, but also ii) protect their businesses and evolve to position themselves at the forefront of a decarbonizing energy system.
Alongside this, Covid-19 has not only triggered a significant drop in demand for oil and other fossil fuels, but has also worsened the investment climate. As a result, there has been a considerable impact on the rate of workforce employability in the energy sector, which producer countries should take seriously if they are to make a success of the energy transition.
Moreover, even before the world decided to commit to climate policy, all was not well in the fossil fuel world. Countries which rely excessively on oil and gas revenues have been suffering from declining employment for many years, even if production is on the rise from time to time. This decline in employment opportunities in the sector is the result of increasing pressure from the supply of cheap natural gas due to the fracking boom and, now, from the growing supply of wind and solar power.
As the global energy sector is about to shift from fossil fuels to cleaner forms of energy such as green hydrogen, solar and wind power, questions are being asked about tomorrow’s energy jobs: where will they be located? How secure will they be?
Through the National Climate Plan (NCP), the Algerian government intends to reduce its greenhouse gas emissions between 7% and 22%; among other things, by initiating a change in everyone’s behavior towards fossil-based energy, the sector being the biggest emitter with 75% of total emissions resulting respectively from energy consumption (46%), hydrocarbon production, processing and transport (20%) and natural gas liquefaction (8%). The NCP will therefore have to accelerate the steady decline in the share of fossil fuels in the energy mix.
Studies have also shown that renewable energies have a positive effect on job creation. For example, the energy created by photovoltaic solar cells, landfill gas or biomass plants has a higher number of jobs created per unit of energy produced than energy from conventional sources. This is supported by the fact that investments in clean energies are more labor-intensive than investments in fossil fuels.
According to a study by the Economic Policy Institute (USA), the biggest job gains will be in energy efficiency, although the construction of new natural gas-fired power plants and renewable energy farms will also create substantial jobs. If we take into account the indirect effects (supplier and redistribution jobs), we could see substantial job creation in the future.
It also means an alternative for people wishing to work in the fossil fuel sector in the fast-growing renewable energy sector: more specifically, the solar and wind industries, a permanent job.
The implementation of the national renewable energies program, where there is a wide variety of employment opportunities at all levels of education, can, in principle, absorb the demand for jobs, particularly in southern Algeria, where there is enormous potential for the success of renewable energy projects.
Short courses or fast-track training may be sufficient. But those wishing to occupy engineering or other technically demanding positions will probably need to obtain a university degree of several years’ duration from institutions of higher education. On the other hand, it’s important to bear in mind that all the challenges we’ll face in renewable energies will require the same engineering know-how we’ve deployed in the upstream oil and gas sector over the past 50 years.
Finally, a successful transition requires adequate support over several years. Economic diversification – innovating, persuading companies to invest in innovation, training skilled workers and establishing an adequate supply chain – is a difficult process, and it may not develop quickly enough to create jobs for young people. This is why social support measures will play an important role. Transition planning needs to start now, before the full economic impact of climate policy is felt.
