Renewable Energy and Energy Efficiency Program

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Efficiency Program


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Renewable Energies : a priority in Algeria I- Renewable Energy Program

Photovoltaic solar energy Solar thermal energy Wind energy

II- Energy Efficiency Program

Thermal insulation of buildings Solar water heating development

Spreading the use of low energy consumption lamps Introducing energy performance in street lighting Promoting energy efficiency in the industrial sector Promoting Liquefied Petroleum Gas fuel

Promoting Natural Gas fuel

Introduction of key technologies for solar air conditioning

III- Development of Industrial Capacity

Photovoltaic solar energy Solar thermal energy Wind energy

IV- Research and Development V- Legal Framework and Incentives

Legal framework

Incentives and fiscal measures Regulatory measures

VI- Glossary



Algeria has created a green momentum by launching an ambitious program to develop renewable energies (REn) and promote energy efficiency. This program leans on a strategy focussed on developing and expanding the use of inexhaustible resources, such as solar energy in order to diversify energy sources and prepares Algeria of tomorrow. Through combining initiatives and the acquisition of knowledge, Algeria is engaged in a new age of sustainable energy use.

The program consists of installing up to 22 000 MW of power generating capacity from renewable sources between 2011 and 2030, of which 12 000 MW will be intended to meet the domestic electricity demand and 10 000 MW destined for export. This last option depends on the availability of a demand that is ensured on the long term by reliable partners as well as on attractive external funding.

In this program, renewable energies are at the heart of Algeria’s energy and economic policies: It is expected that about 40% of electricity produced for domestic consumption will be from renewable energy sources by 2030. Algeria is indeed aiming to be a major actor in the production of electricity from solar photovoltaic and solar power, which will be drivers of sustainable economic development to promote a new model of growth.

The national potential for renewable energy

is strongly dominated by solar energy. Algeria considers this source of energy as an opportunity and a lever for economic and social development, particularly through the establishment of wealth and job-creating industries. The potential for wind, biomass, geothermal and hydropower energies is comparatively very small. This does not, however, preclude the launch of several wind farm development projects and the implementation of experimental projects in biomass and geothermal energy.

The renewable energy and energy efficiency program is organized in five chapters:

Capacities to install by field of energy activity,

Energy efficiency program,

Industrial capacities to build in order to back up the program,


Research and development, Incentives and regulatory measures. The program provides for the development by 2020 of about sixty solar photovoltaic and concentrating solar power plants, wind farms as well as hybrid power plants.

The projects for the domestic production of electricity from renewable energy sources will be carried out in three phases:

The first phase, between 2011 and 2013, will be devoted to the achievement of pilot projects to test the different available technologies,

The second phase (2014 – 2015) will mark the beginning of the deployment of the program,

The last phase, between 2016 and 2020, will be devoted to the large-scale deployment of the program.

These phases are a part of Algeria’s strategy, which is aimed at developing a genuine solar industry along with a training and capitalization program that will ultimately enable the use of local engineering and establish efficient know-how, including in the fields of engineering and project management. The renewable energy program to meet domestic needs in electricity will generate several thousand of direct and indirect jobs.

Today, Algeria’s energy needs are met almost exclusively by hydrocarbons, mainly natural gas. The other forms of energy are mobilized only when natural gas cannot be used. The long term extension of the national energy consumption pattern can affect the existing supply-demand balance for this energy source.

The level of natural gas volumes, produced of the domestic market would be 45 billions m3 in 2020 and 55 billions m3 in 2030. Other

volumes of natural gas are intended for export to help finance national economy. Electricity consumption is expected to reach 75 to 80 TWh in 2020 and 130 to 150 TWh in 2030. The massive integration of renewable sources in the energy mix represents a major challenge for preserving fossil resources, diversifying electricity production systems and contributing to sustainable development.

All these considerations justify the strong integration, right today, of renewable


energies in the strategy of long-term energy offer, while granting an important role to energy savings and to energy efficiency. This latter aspect will lead, through a proper control of the pace at which demand is growing, to better investments necessary to energy needs. The energy efficiency program consists mainly in the achievement of the following:

Improving heat insulation of buildings; Developing solar water heating;

Spreading the use of low energy consumption lamps;

Substituting all mercury lamps by sodium lamps;

Promoting LPG and NG fuels; Promoting co-generation;

Conversing simple cycle power plants to combined cycle power plants, wherever possible;

Developing solar cooling systems;

Desalinating brackish water using renewable energy.

The renewable energy development program has a national character affecting the majority of sectors. Its implementation, under the aegis of the Ministry of Energy and Mines, is opened to both public and private operators.

The government’s willingness to promote renewable energies is also reflected in the establishment of a Commission for renewable energy, responsible to coordinate the national effort in this area.

The present document, which lists Algeria’s projects and ambitions in terms of sustainable development and “green energies”, is part of this drive for the promotion and development of renewable energies and energy efficiency.



enewable Energy Program


Algeria is firmly committed to the promotion of renewable energy in order to provide comprehensive and sustainable solutions to environmental challenges and to the problems regarding the conservation of the energy resources of fossil origin.

The strategic choice is motivated by the huge potential in solar energy. This energy is the major focus of the programme of which solar power and photovoltaic systems constitute an essential part. Solar should achieve by 2030 more than 37% of national electricity production.

Despite its relatively low potential, wind energy is not excluded from the program as it constitutes the second axis of development with a share in electricity production expected to reach about 3% in 2030.

Algeria also plans to install some experimental size units to test the various technologies in renewable energies such as biomass, geothermal energy and desalination of brackish water.


0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 MW

Conventional power generation Renewable energy generation Figure 1: Contribution of renewable energies for power generation in TWh

Figure 2: Structure of the national power generation in MW

The renewable energy program is defined through different phases: Installation of a total power capacity of 110 MW by 2013 ; Installed power capacity to reach 650 MW by 2015 ;

Installed power capacity to reach about 2600 MW by 2020 and a possibility of export of 2000 MW;

An additional capacity of about 12000MW is expected to be installed by 2030 and a possibility of export up to 10 000 MW. 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% Con tribution of r enew able ener gy (%) 0,00 20,00 40,00 60,00 80,00 100,00 120,00 140,00 160,00 2011 2015 2020 2025 2030

Power generation from renewable sources(TWh) Conventional power generation (TWh) Contribution of renewable energy (%)


wer gener

ation (



The program, by sector of energy production, is summarized as follows:

Photovoltaic solar energy

Photovoltaic solar energy refers to the energy recovered from sunlight and transformed directly into electricity through photovoltaic panels. It results from direct photon-to-electron conversion in a semiconductor. In addition to the advantages related to the fact that photovoltaic systems do need low cost maintenance, this energy fully meets the needs of facilities in remote areas where connection to the grid is too expensive. Photovoltaic solar energy is a non-polluting source of energy. The modularity of the photovoltaic solar system allows for innovative and aesthetic use of its components in architecture.

The energy strategy of Algeria is based on

the acceleration of the development of solar energy. The government plans launching several solar photovoltaic projects with a total capacity of 800 MWp by 2020. Other projects with an annual capacity of 200 MWp are to be achieved over the 2021-2030 period.

Solar thermal energy

Solar thermal energy is a technology that converts solar radiation into thermal energy. It can be used directly (for example to heat buildings) or indirectly (to produce steam to power turbo alternators that will in turn generate electric power). By using the heat produced by solar radiation rather than the radiation itself, the solar thermal energy system differs from other solar energy systems like the photovoltaic cells.

Direct solar radiation is concentrated by a collector on an absorber where it is transferred into a fluid that is either sprayed directly or drives the heat to a steam generator. All solar energy systems have a number of elements in common: a collector that concentrates the heat, a liquid or gas that transfers the heat to an extraction point, an evaporator, a turbine and a generator.

More commonly known as « Concentrating Solar Power » (CSP) system, the solar thermal energy technology can meet demand in electricity 24 hours a day if it is coupled with a thermal storage system or if production is


combined with other energies like natural gas.

Algeria seeks to develop its solar potential, which is one of the most important in the world, by launching major projects in solar thermal.

Pilot projects for the construction of two solar power plants with storage of a total capacity of about 150 MW each, will be launched

during the 2011-2013 period. These will be in addition to the hybrid power plant project of Hassi R’Mel with a total power capacity of 150 MW, including 25 MW in solar.

Four (4) solar thermal power plants with a total capacity of about 1 200 MW are to be constructed over the period 2016-2020. The 2021-2030 programme provides for the installation of an annual capacity of 500 MW until 2023, then 600 MW per year until 2030.

Wind energy

By definition, wind energy is the energy produced by wind. It is the result of the action of wind turbines, wind-driven electrical machines and whose function is to produce electricity.

Blades pulled in rotation by the strength of the wind allow the mechanical or electric power production in any sufficiently windy site. The energy that the mill rotating pulls out of the wind drives the rotor which converts mechanical energy into electrical energy through a generator.

The amount of energy produced by a wind turbine depends primarily on the speed of wind but also on the area swept by the blades and the air density.

The Algerian REn program plans at first, in the period 2011-2013, the installation of


the first wind farm of a power of 10 MW in Adrar. Between 2014 and 2015, two wind farms with a capacity of 20 MW each are to be developed. Studies will be led to detect

suitable sites to realize the other projects during the period 2016-2030 for a power of about 1 700 MW.





The energy efficiency program is governed by Algeria’s commitment to promote a more responsible use of energy and to investigate all the ways to protect the resources and systematize (explore all possible avenues for conserving resources and systematizing) efficient and optimal consumption.

Energy efficiency aims to produce the same goods and services by using least possible energy (the less possible energy). The program provides for measures that favour forms of energy most suitable for different uses and require behavioural change and improved equipment.

The energy efficiency program is as follows:

Thermal insulation of buildings

In Algeria, the construction sector is the most energy intensive sector. It uses more than 42% of overall energy consumption. Proposed measures to achieve energy efficiency in this sector include the introduction of thermal insulation of buildings, which will reduce energy consumption related to home heating and cooling by about 40%.

Solar water heating development

The penetration of solar water heaters in Algeria remains undeveloped but the potential is significant. There are plans to develop the solar water heating system to

gradually replace the conventional system. The plans are supported by the National Fund for Energy Efficiency (NFEE).

Spreading the use of low energy consumption lamps

The objective of the action strategy is to gradually prohibit the marketing of incandescent lamps (conventional lamps commonly used by households) on the domestic market to reach a total ban by 2020. In parallel, there are plans to put several million low-energy bulbs on the market. Furthermore, local production of low consumption lamps will be encouraged in particular through partnerships between local and foreign producers.

Introducing energy

performance in street lighting

Street lighting is the most energy consuming sector in the municipalities. Municipal


officers are often poorly informed about the opportunities for improving and even reducing energy consumption in public lighting. The program for energy efficiency in the municipalities consists of replacing all mercury (energy consuming) lamps by sodium (low energy) lamps.

Promoting energy efficiency in the industrial sector

The industrial sector accounts for about one fourth of the country’s overall energy consumption. For more energy efficiency, there are plans for:

Cofinancing energy audits and feasibility studies that will enable companies to precisely define technical and economical solutions best suited for reducing energy consumption;

Cofinancing additional costs linked to the

introduction of energy efficiency into technically and economically viable projects.

Promoting Liquefied Petroleum Gas fuel

There are plans to increase by 20% the market share of Liquefied Petroleum Gas Fuel (LPG / F) in the automobile fleet by 2020. This will be accompanied by the provision of direct financial assistance to individuals wishing to convert their vehicles to LPG / F.

Promoting Natural Gas fuel

As early as the beginning of the 90s, a research program was initiated to convert vehicles using diesel fuel to natural gas fuel. Stations were developed by Sonelgaz for the distribution of this fuel to an experimental fleet.

By 2013, it is planned to put on in NG / Fuel several tens of bus in the city of Algiers and to extend the operation to the other big cities of Algeria before 2020.

Introduction of key technologies for solar air conditioning

Solar energy for air conditioning is a technology that should be promoted particularly in the south of the country, as far as the needs for cooling mostly coincide with the availability of solar radiation (conversion


of sunrays into energy). Moreover, solar collectors may also be used for hot water production and room heating during the cold season. The overall performance of a solar cooling system is therefore of a great interest.

By 2013, studies will be launched to acquire and harness solar cooling technologies and choose the system best suited to the Algerian context. Two pilot projects for air cooling using absorption and adsorption chillers will be launched for the cooling of buildings in the south of the country.





evelopment of Industrial


In order to follow up and ensure the success of the renewable energy program, Algeria plans to strengthen the industrial fabric to take a lead in the positive changes in the industrial and technological plans as well as in terms of engineering and research. Algeria is also determined to invest in all creative segments of industry and develop them locally.

Photovoltaic solar energy

Industrial integration in Algeria is expected to reach 60% over the period 2011-2013. This ambitious target will be achieved through the construction by “Rouiba-Eclairage”, a subsidiary of the Sonelgaz Group, of a photovoltaic module manufacturing plant with a capacity equivalent to 120 MWp/per year, whose start up is scheduled for late 2013.The period will also be marked by the implementation of measures to strengthen engineering and business development support to the photovoltaic industry through a joint venture that will bring together various stakeholders (Rouiba-Eclairage, Sonelgaz, CREDEG, CDER and UDTS) in partnership with research centers. The objective of the Algerian industry for the 2014-2020 period is to achieve a capacity integration level of 80%. To do this, it is expected the construction of a plant for the manufacture of Silicon.

Moreover, a national subcontracting network

is to be established for the manufacturing of inverters, batteries, transformers, cables and other equipment used in the construction of a photovoltaic power plant.

Over the same period, Algeria is also to build capacities to design, procure and produce with a view to enabling Algerian companies to reach an integration rate of 60%.

There are also plans to develop a center for the approval of products used in the manufacturing of equipment for renewable energy installations.

Over the period 2021-2030, the objective is to reach a rate of integration upper


to 80 %. Therefore, the production capacity of the photovoltaic modules should be expanded to reach 200 MWp/per year. This period would be marked by the development of a national subcontracting network for the manufacturing of equipments necessary for the construction of a photovoltaic power plant and by the total control of the activities of engineering, of procurement and construction of power plants and brackish water desalination units.

There are plans for the same period to export not only the electricity produced from renewable energies but also the know-how and equipment used in the generation of electricity from renewable energies.

Solar thermal energy

The 2011-2013 period will see the launching of studies for the local manufacturing of equipment for the solar thermal sector. The industrial integration rate is expected to reach 50% over the 2014-2020 period through the implementation of three major projects in parallel with actions for engineering capacity building:

Construction of a mirror manufacturing plant;

Construction of heat transfer fluid and energy storage equipment factories;

Construction of a factory for the manufacture of power block equipment;

Development of engineering activities and design, procurement and production capabilities to achieve an industrial integration capacity rate of at least 50%.


Over the 2021-2030 period, the rate of integration should exceed 80% through the implementation of the following projects:

Expansion of mirror production capacity; Expansion of heat transfer fluid and energy storage equipment production capacity;

Expansion of power block equipment production capacity;

Design, procurement and construction of power plants by own means.

Wind energy

Studies are to be launched by 2013 with a view to implement wind energy industry.


The objective for the 2014-2020 period is to attain an integration rate of 50%. This period will be marked by the following actions:

Development of a wind tower and turbine rotors production plant;

Promotion of a national subtracting network for the manufacturing of the nacelle equipment;

Development of engineering activities and design, procurement and construction capabilities to enable Algerian companies to

achieve an industrial integration capacity rate of at least 50%.

The rate of industrial integration is to exceed 80% over the 2021-2030 period with the expansion of wind tower and turbine rotors production capacity and the development of a national subcontracting network for manufacturing the nacelle equipment. There are also plans to design and build wind farms, power plants and brackish water desalination plants using Algeria’s own resources.





Algeria fosters research to make of the renewable energy program a catalyst for developing a national industry which will optimize the various Algerian potentials (human, physical, scientific, etc.). The role of research is even more crucial that it is a critical element in the acquisition of technologies, the development of know-how and the improvement of the energy performance. For Algeria, speeding up the acquisition and use of technology are essential especially with regard to photovoltaic and solar thermal energy development.

Algeria also encourages cooperation with research centers to develop innovative technologies and processes in energy efficiency and renewable energy. Universities, research centers, businesses and other stakeholders work together to implement the renewable energy program and are engaged in the various stages of the innovation chain, thereby further enhancing the assets of Algeria.

Indeed, ensuring large-scale development of renewable energy and addressing the issue of energy efficiency require quality management in human resources to match the objectives and ambitions of the Algerian renewable energy program.

In addition to the research centers affiliated to companies like Electricity and Gas

Research and Development Center (CREDEG), which is a subsidiary of Sonelgaz, the energy and mining sector has an Agency for the Promotion and Rational Use of Energy (APRUE) and a company specialized in the development of REn (NEAL). These bodies which cooperate with the research centers attached to the Ministry of Scientific Research include CDER and UDTS.

CDER or Center for Renewable Energy Development is responsible for developing and implementing programs of scientific and technological research and development of systems using solar, wind, geothermal and biomass energies.

UDTS or Silicon Technology Development Unit conducts scientific research, technological innovation and advanced and


post-graduation training activities in the sciences and technologies of semiconductor materials and processes applied to several areas including photovoltaics, detection, optoelectronics, photonics and energy storage. UDTS actively contributes, in collaboration with several Algerian universities to developing knowledge and technological know-how and processes as well as products necessary to economic and societal growth.

The Algerian government has also established an institute for renewable energy and energy

efficiency (IAER) which will play a key role in training efforts deployed by the country and ensures quality development of renewable energies in Algeria. The training provided by the Institute cover areas including engineering, safety and security, energy auditing and project management.

As it considers scientific cooperation an essential element in research activity development, Algeria encourages exchanges between companies and various research centers worldwide, including networks specializing in renewable energy.





egal Framework and


Legal framework

Aware of the increasing interest in renewable energies and their stakes, Algeria has integrated their development into its energy policy by adopting a legal framework favorable to their promotion and to the development of the concerned infrastructures.

The development of the renewable energies is framed by a set of legislative texts:

The law n°99-09 of July 28th, 1999 relative to the energy control;

The law n°02-01 of February 5th, 2002, relative to the electricity and the public distribution gas by pipes;

The law n°04-09 of August 14th, 2004, relative to the promotion of the renewable energies within the sustainable development.

Incentives and fiscal measures

Legal framework modifications will be brought in order to better respond to the priorities expressed in the REn program and to encourage initiatives from both individuals and companies. It is important to make sure that the users, this means ensuring that users,

stakeholders and individual investors benefit from a legislative and regulatory framework to respond effectively to challenges in renewable energy.

Besides the general frame governing the development of the investment of which the specific regime of the convention can be opened to the promotion of the renewable energies, the current legal framework plans direct and indirect supports in the renewable energies.

Incentives measures and encouragement are mentioned in the law relative to the energy control (financial, fiscal advantages and customs duties) for the actions and the projects which contribute to the energy efficiency improvement and to the renewable energies promotion. A National Fund for Energy Efficiency (NFEE) was also established to finance these projects and grant loans unpaid and guarantees for the loans made with banks and financial institutions, for the energy efficiency investments.

The objective of these measures is to encourage the local products and to provide good conditions especially in fiscal terms, to the investors willing to get involved in different sectors of renewable energies.


To encourage and support the industrial companies in the realization of this program, is planned, among others, the reduction of the customs duties and the VAT in the import of the components, raw materials and semi-finished products used in the manufacturing of equipments, in Algeria, in renewable energies and energy efficiency domains.

Regulatory measures

The voluntary policy of Algeria in the realization of the program of development of the renewable energies will be made through the granting of subsidies to cover the additional costs on the national electric system and on the cost of providing drinking water, in particular for the program of brackish water desalination. In addition, State contributions will be specified through legal measures which will also define the conditions and the adequate control mechanisms to allow an optimal use of the public fund which is assigned to this program.




Agency for the Promotion and Rational Use of Energy.


The total mass of living matter of plant or animal origin within a given unit of environmental area. Biomass used as renewable energy sources include wood products, industrial by-products ( including paper and agro-food industries) agricultural by-products and by-by-products, animal by-products as well as urban waste (sewage bio solids, household refuse, landfills, etc.).


Center for Renewable Energy Development.


Combined heat and power generation. The advantage of cogeneration compared to traditional generation methods is that it improves energy efficiency. This means that to equivalent energy consumption, the plant using cogeneration will recover more energy at the output than the single power plant.


Electricity and Gas Research and Development Center, subsidiary company of Sonelgaz Group.

Sustainable development

Development that meets current needs without jeopardizing the ability of future generations to meet own needs.


Fossil energy

Fossil energy is the chemical energy contained in fossil fuels. Over geologic time, organic matter (biomass) was buried deep within the ground or formed deposits on the bottom of lakes and oceans. It then turned into kerogen, then into fossil fuels: oil, natural gas or coal.

Renewable energies

Renewable energies are referred to as the whole set of energy production technologies which, if implemented, do not lead to the depletion of the initial resource which is renewable permanently at human scale. Provided by the sun, the wind, the heat from the earth, the waterfalls, the tides or yet the growth of plants, their exploitation generate little or no waste and no polluting emissions. They are energies generated from a permanent renewable source. They are called “flow” energy sources compared with «stock» energy sources, which are made of limited deposits of fossil fuels: oil, coal, gas and uranium.


Hydropower is the power that is derived from the energy of moving an incompressible fluid like fresh or sea water. The motion will generate a mechanical force that is either used directly or converted into electric power.

Wind energy

Energy generated from wind by the rotation of propellers or blades (turbines). The energy produced depends on the wind and therefore a random weather factor. There are ground and sea facilities (offshore wind turbines). Wind farm: group of wind turbines producing electricity. A farm may include less than a dozen to several hundred wind turbines.



NG fuel

Natural Gas fuel.

LPG fuel

Liquefied Petroleum Gas fuel.

Sonelgaz Group

The group of companies called Sonelgaz Group comprises the holding company «Sonelgaz» and 35 subsidiaries, including those in charge of electricity production, transmission and distribution and natural gas transport and distribution.


Algerian Institute for Renewable Energies and Energy Efficiency.

Kilowatt hour (kWh)

Unit of work and energy measurement. One kilowatt hour corresponds to the consumption of an electric appliance of 1 000 W at work during one hour. 1 MWh (megawatt hour) = 1 000 kWh, 1 TWh (terawatt hour) = 1 billion kWh.

Megawatt (MW)

A megawatt is a unit for measuring power that generally describes the production capacity of a power generator (1 megawatt = 1 million watts).

Photovoltaic module

Assembly of photovoltaic cells with a protective coating and electrically connected. This assembly of cells can generate direct electrical current in individual facilities or in photovoltaic power plants.


The performance metrics of this type of generator are as follows: panel surface and sun radiation level (which varies by region, season, time of day, weather, etc.).

The advantage of photovoltaic solar modules is that they do not generate any waste during operation and can be easily removed when they reach end of life - which is currently about 20 years.

Rouiba Eclairage

Subsidiary company of Sonelgaz Group, which produces lighting equipment and is responsible for implementing a photovoltaic cell manufacturing plant to be operationalized in late 2013.


Semiconductor material, which the essential constituent of certain types of sand and computer chips. It can be used in the manufacturing of photovoltaic solar cells and is the component that makes high energy efficiency possible.


New Energy Algeria is a joint-stock company, a subsidiary of the groups Sonelgaz, Sonatrach and SIM. Created in 2002, NEAL is in charge of the development of REn projects.


Semolina Manufacturer of the Mitidja.


Company of hydrocarbons occurring in the exploration, the production, the transport by pipes, the transformation and the marketing of hydrocarbons and their by-products.


Photovoltaic solar energy

Renewable energy using the radiation of the sun to produce some electricity.

Thermal solar energy

The thermal solar energy allows producing some heat (in low, average or high temperature). The most wide-spread applications are the ones concerning.


Value Added Tax.


Silicon Technology Development Unit.

Watt (W)

The watt (symbol: W) is the international legal unit for power. It corresponds to the amount of energy consumed or produced per unit of time, that is to say one joule per second. In electricity, the watt is the unit of power of a system supplying a current of 1 ampere at a voltage of 1 volt. This word originates from the name of the engineer James Watt.

Watt-peak (Wp)

The Watt-peak is a unit for the measurement of the nominal power delivered by a solar energy device with a standard solar radiation level of 1kW/m² and a temperature of 25°C. This unit makes it possible to compare the various solar energy collection equipment using photovoltaic materials.



Figure 2:    Structure of the national power generation in MW

Figure 2:

Structure of the national power generation in MW p.9
Figure 3:   Process of solar thermal power plant with storage.

Figure 3:

Process of solar thermal power plant with storage. p.20


Outline : Glossary APRUE