Algeria powers ahead with sustainable energy initiatives

Rich in oil, gas and a wealth of renewable energy resources, Algeria offers substantial investment opportunities for power players from across the domestic and global market.

Despite the country’s reliance on hydrocarbon resources for power generation, Algeria aims to reach a renewable energy capacity of 15,000 MW and produce 27% of its electricity from renewable resources by 2035.

Under efforts to advance a transition towards a sustainable energy future, various projects are underway that will enable the country to meet dual goals of emissions reduction and power generation expansion.

Currently, the North African country generates approximately 686 MW – 3% of its energy mix – from renewable sources, which are primarily derived from solar (448 MW), hydro (228 MW), and wind (10 MW). Boasting some of the world’s highest irradiance levels – with the capacity to generate up to 2,100 kWh per year – and a 1,300km Mediterranean coastline with wind speeds of over eight meters per second, the Government of Algeria has implemented an ambitious plan to increase infrastructural and financial investment to successfully shift to renewable energy sources.

In July 2023, Algeria’s state-owned power utility Sonelgaz revealed a list of bidders for a 2 GW solar tender launched in February. The selected bidders are poised to develop solar projects in 11 locations throughout the North African country with capacities ranging from between 80 MW and 220 MW. In an effort to promote local content development, the selected developers must source at least 35% of the construction components in Algeria.

This comes after Algeria’s Ministry of Environment and Renewable Energies and its National Oil Company (NOC) Sonatrach’s December 2021 tender for the deployment of 1 GW of solar photovoltaic power. Selected developers for the initiative will be awarded a 25-year power purchase agreement for lots ranging from between 50 MW and 300 MW.

As part of this tender, renewable energy company Shaems will oversee the development of a 30 MW solar park that will be constructed in the town of Beni Ounif, Bechar Province. The project is expected to come online at the end of 2023 or beginning of 2024.

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