Financial or Socio-Economic Feasibility? Potential Assessment of Renewable Energy Investment in Algeria

Abstract

This study examines the objectives behind the Algerian government’s investment in renewable energy—whether the investment decision is for financial or socio-economic feasibility. The study applies the Net Present Value (NPV) method to provide an answer. The findings show that socio-economic feasibility, rather than financial feasibility, is sought from the investment in renewable energy. The latter remains an inappropriate criterion for assessing a project’s success or failure. The findings are helpful for future studies to build on and will likely attract the attention of policymakers in Algeria.