As of 2022, Algeria’s total solar power capacity was 460 MW.⁵

Algeria has set an ambitious target to significantly increase its reliance on clean energy by 2030, aiming to generate 22 gigawatts (GW) of renewable energy – with 62% of that planned for solar production.⁶

Natural Gas

67% of electricity generation is from Natural gas. So, as of June 2023, the average price of electricity in Algeria for households is 0.040 USD/kWh.

Coal

Lacking coal reserves, Algeria has no domestic coal production. Consequently, its coal consumption is minimal, averaging around 28,000 short tons annually between 2012 and 2021. ⁷

Solar

According to Jones Day, the base tariffs for solar photovoltaic projects in Algeria range from 0.0944 USD/kWh to 0.1180 USD/kWh⁸

Wind

• According to Jones Day, the base tariffs for wind projects in Algeria range between 0.0776 USD and 0.0969 USD/kWh.⁸

In Algeria, natural gas and oil account for over 90% of the energy generated in the country, while the remaining 0.1% is clean energy. However, there has been growing interest in Algeria’s solar power projects in recent years, aiming to increase the share of renewable energy. In Figure 03, all the percentages of various electricity generation sources are given for the year 2021- 2022 ⁹.

Exact number of hours is not mentioned in any data.

• But electricity access rates in Algeria are relatively high compared to some other African nations, with around 99% of the population having access to electricity as of 2019 (World Bank data).¹²

Data not available explicitly but; ²⁵

Algeria also intends for solar energy to cover up to 30-40% of its domestic electricity consumption by 2030, reducing its reliance on fossil fuels like natural gas, which currently generates the vast majority of the country’s electricity​.

• By September 2023, Algeria had 24 big solar power plants connected to the main power grid.
• In 2023, Algeria asked companies to build 15 new solar power plants. Each one will be able to make between 80 and 220 megawatts of power. They plan to start building these in 2024.¹⁰¹¹

¹³¹⁴¹⁵

Current Market:

• Algeria is expanding its solar energy capabilities with the development of additional solar power plants, including the El Kheneg facility located in the Sahara Desert.
• This substantial plant boasts 240,000 solar panels and has a capacity of 60 megawatts, contributing approximately one-seventh of the required power for the Laghouat region.
• Furthermore, the government is promoting clean energy adoption by distributing solar kits to remote villages and nomadic communities in the Laghouat area.
• In another significant initiative, the newly constructed airport in Oran – Algeria’s second-largest city – is powered by solar energy. The airport’s roof is equipped with over 4,500 solar panels, enabling it to accommodate 3.5 million passengers annually while showcasing the country’s commitment to renewable energy.

Market Projection

• Algeria has set an ambitious renewable energy target of achieving 16 gigawatts (GW) of solar and other clean energy capacity by 2035.
• To advance this goal, the government initiated a request for proposals in 2019, inviting companies to develop various solar projects, including off-grid solar installations and hybrid systems combining solar power with diesel fuel.
• This endeavor is part of Algeria’s comprehensive Renewable Energy Development Program, which aims to reach a total clean energy capacity of 22,000 megawatts (MW) by 2030. This program underscores the country’s commitment to diversifying its energy mix and reducing its reliance on fossil fuels.

“Solar1000 MW” ¹⁶

• Algeria is implementing a comprehensive clean energy strategy, supported by government initiatives and legislative frameworks. A significant milestone was achieved in 2023 when Sonelgaz, the national electricity company, selected 41 companies to develop solar power projects as part of its “Solar 1000 MW” program.
• These projects will collectively generate 1000 megawatts of electricity. Shaems, the government-owned entity overseeing this initiative, anticipates that the first electricity will be produced by the end of 2023, or by early 2024 at the latest.
• The initial power output will come from a 30-megawatt solar park in Beni Ounif, Bechar area, which is a component of the larger Solar 1000 MW project.
• Notably, all electricity generated by these new solar farms will be sold exclusively to Sonelgaz for a period of 25 years, aligning with the company’s role as the primary distributor of electricity and natural gas in Algeria.

Forecasted On-Grid demand

Algeria’s 2022 plan for growing clean energy says the country will have 22 gigawatts of clean energy by 2030. Of this, 62% will come from solar panels and 23% will come from wind power. To reach this goal, Algeria needs to build 5000 megawatts of solar power by 2028.

• Algeria is planning to develop several large-scale solar power plants in the southern regions of the country, leveraging the abundant sunlight in these areas.
• The plants will utilize Concentrated Solar Power (CSP) technology, which is particularly well-suited for high-irradiance locations.
• In 2022, Algeria announced plans to construct a CSP plant with a capacity of 1.5 gigawatts (GW), which could potentially become one of the largest CSP plants globally.
• This ambitious project underscores Algeria’s commitment to harnessing its significant solar resources to meet its growing energy demands and reduce its reliance on fossil fuels.
• By capitalizing on its favorable solar conditions, Algeria aims to become a leader in the adoption of CSP technology and a major player in the global renewable energy landscape.

¹⁷

• Average Salary: 9,603.06 USD/year
• Lowest Average Salary: 5,189.36 USD/year
• Highest Average Salary: 14,469.22 USD/year

As of May 16, 2024, Algeria’s population is 46,191,578. This is a 1.47% increase from 2023, when the population was 45,606,480.¹⁸

Warehouse Costs in Algeria ¹⁹

Office Costs ²⁰

Serviced Offices:

• Lower range/Month: $259.15 (Rue Larbi Alik)
• Higher range/Month: $539.47 (Boulevard du 11 Décembre)

Coworking Desks:

• Lower range/Month: $240.17 (Rue Larbi Alik)
• Higher range/Month: $510.27 (Boulevard du 11 Décembre)

Virtual Offices:

• Lower range/Month: $40.15 (multiple locations)
• Higher range/Month:$54.75 (Boulevard du 11 Décembre)

Commercial Electricity rates ⁴

For businesses, the price is 0.035 U.S. dollars, per kilowatt hour.

Salary and Wages ¹⁷

• Average Salary: 9,603.06 USD/year
• Lowest Average Salary: 5,189.36 USD/year
• Highest Average Salary: 14,469.22 USD/year

Here’s a summary of the energy infrastructure in Algeria:

Electricity Generation ²¹

• Natural gas and oil account for more than 90% of Algeria’s energy, while renewable energy sources make up about 3%.
• Algeria’s electricity generation from renewable sources remains modest, accounting for approximately three percent or 686 MW annually, including 448 MW solar, 228 MW hydro, and 10 MW wind power.

Transmission & Distribution ²²

Algeria’s energy sector is managed by two state-owned entities: Sonatrach, responsible for hydrocarbon production and trading; and Sonelgaz, which oversees the distribution of electricity and natural gas. To enhance the country’s energy infrastructure, several key projects are underway, including:

• A 400kV, 700 km project to reinforce the electricity supply in southern Algeria
• A 1,300 km transmission line connecting the provinces of Ghardaia and Tamanrasset, near the border with Niger and Mali

Notably, Algeria’s electricity production has experienced steady growth, increasing by 6% annually since 2012, with gas being the primary source of generation. Furthermore, the country’s gas exports have surged by 33% since 2020, largely due to the impact of the war in Ukraine on global energy markets.

Energy Access  ²³²⁴

• According to Statista, 99.79% of Algeria’s population had access to electricity in 2021, which was the highest percentage during the observed period.
• However, MacroTrends reports that Algeria’s electricity access in 2022 was 100%, which is a 0.21% increase from 2021.

Energy exports

• Algeria needs to export its hydrocarbon resources to support its economy, so it must reconsider the role of renewables.
• Analysts predict that Algeria will need to forego hydrocarbon export revenues to supply domestic power demand by 2035 unless it adds significant renewable resources to its power generation mix.

²⁵²⁶⁸

• Algeria’s Renewable Energy Program (AREP) guarantees preferential feed-in tariffs for solar photovoltaic projects for 20 years, ranging from 0.0945 USD/kWh to 0.1179 USD/kW.
• The government also announced in February 2022 that companies bidding on solar energy tenders would not be subject to the 51/49 investment rule.
• The government does not offer specific incentives for clean energy investments, but it may take on fiscal responsibilities to ensure continued employment for workers.
• Algeria welcomes foreign investment, and it has revised a number of regulations to encourage it, including allowing foreign entities to own a majority stake. Investors must meet some local content requirements, including using equipment manufactured in Algeria, largely solar panel and assembly structures. There are factories producing solar panels in Boukherana industrial zone, and the province of Ouargla.

Algeria has several initiatives and investments to support solar panel production, including:²⁷

National Renewable Energy and Energy Efficiency Programme (PNEE)

Launched in 2011 to boost renewable energy’s share in Algeria’s energy mix, this program targets adding 22 GW of renewable capacity by 2030, with 13.5 GW specifically from solar energy.

Incentives

The government offers incentives to attract private investment into the solar industry, including long-term power purchase agreements (PPAs), tax advantages, and simplified permitting procedures. In February 2022, the government announced that companies bidding on solar energy tenders would not be subject to the 51/49 investment rule.

New Ministry for Energy Transition and Renewable Energy

The government has created this new ministry to follow through with feasibility and rollout studies.

Infrastructure development

The government is upgrading the grid and building solar parks to support large-scale solar electricity. The Energy Ministry plans to build 4,000 megawatts of solar photovoltaic (PV) plants between 2020 and 2024.

Renewable energy capacity target

The government’s target is to reach 22,000 megawatts of renewable energy capacity by 2030, including 13,500 megawatts of PV energy. The country also aims to produce 27% of its electricity from renewable resources by 2035, mostly from solar power.

Algerian government’s updated renewable energy program ⁸

• The Algerian government’s updated renewable energy program—announced in February 2015—targets a significant increase in renewable energy capacity by 2030, emphasizing solar and wind power.
• To incentivize investment, the government offers preferential feed-in tariffs through 20-year power purchase agreements (PPAs) with distribution grid operators. Producers, subject to eligibility criteria including regulatory approval and environmental assessments, can apply for these tariffs, which range between 0.0945 USD/kWh to 0.1179 USD/kWh for solar photovoltaic projects and 0.0776 USD/kWh to 0.0969 USD/kWh for wind power projects.
• Funding for these subsidies is drawn from a National Fund for Renewable Energies and Cogeneration, supported by a 1 percent tax levy on the state’s oil revenues and other contributions, ensuring financial support for renewable energy projects in Algeria.

Power purchase agreements (PPAs) ²¹

• In 2021, it initiated partnerships with countries like China, Germany, and the United States to bolster renewable energy development.
• Algeria launched a tender for a one-gigawatt solar energy project, and is transitioning off-grid oil and gas facilities to solar power. State-owned companies like Sonatrach and Sonelgaz dominate the sector, with SHAEMS facilitating larger renewable energy projects. Subsidies and incentives include long-term power purchase agreements (PPAs) and a reverse tender process favoring companies offering the lowest prices.
• International companies already involved in Algeria’s renewable energy sector benefit from strategic government engagements and access to tenders.

Here are some notable solar power projects:²⁸

Current Solar Projects

Sonelgaz Algeria Solar PV Park

• Location: Adrar, Algeria
• Capacity: 233MW
• Commissioned: 2015
• Developers: Yingli Green Energy, Sinohydro, Shariket Kahraba oua Takat Moutadjadida, China Hydropower Engineering Consulting Group

Laghouat Solar PV Park

• Location: Laghouat, Algeria
• Capacity: 60MW
• Commissioned: 2016
• Developers: Yingli Green Energy, Sinohydro, Shariket Kahraba oua Takat Moutadjadida, China Hydropower Engineering Consulting Group
• Owner: Shariket Kahraba oua Takat Moutadjadida

Djelfa Solar PV Park

• Location: Djelfa, Algeria
• Capacity: 53MW
• Commissioned: 2016
• Developers: Yingli Green Energy, Sinohydro, Shariket Kahraba oua Takat Moutadjadida, China Hydropower Engineering Consulting Group
• Owner: Shariket Kahraba oua Takat Moutadjadida

Ouargla Solar PV Park

• Location: Ouargla, Algeria
• Capacity: 30MW
• Commissioned: 2015
• Developers: Yingli Green Energy, Sinohydro, Shariket Kahraba oua Takat Moutadjadida, China Hydropower Engineering Consulting Group
• Owner: Shariket Kahraba oua Takat Moutadjadida

Hauts Plateaux West Saida Solar PV Park

• Location: Saida, Algeria
• Capacity: 29.88MW
• Commissioned: 2016
• Developer: Shariket Kahraba oua Takat Moutadjadida

Notable solar projects in the country (Projected) ²⁹

The Solar 1,000MW Project

Capacity

• Total Project Capacity: 1,000 MW (first phase)
• Individual Plant Capacities: 50 MW to 300 MW

ZERGOUN GREEN ENERGY ³⁰

Location

Algeria

Products

Photovoltaic (PV) Modules

• Up to 405 Wp per module
• Made with “bankable” glasses (double glazing)
• Equipped with highly efficient “Mono Perc” cells

Services

Renewable Energy Solutions

• Production of PV modules via Africa’s largest automated factory with a capacity of over 200 MW per year
• Use of advanced European technologies and products

SCET Algérie Energie ³¹

Location

Algeria

Products

• Solar System Installations
• Sensitive Electrical System Protection

Services

Renewable Energy Solutions

• Specialized in solar installations
• Serving various economic sectors, including critical applications
• Established in 1995 and recognized as a leader in the renewable energy market in Algeria

Shariket Kahraba wa Taket Moutadjadida, SKTM ³²

Location

Southern Regions of Algeria

Services

Electricity Supply Improvement

• Enhanced isolated network management
• Ensuring reliable electricity supply for households and the economy in southern Algeria

Promotion of Solar Energy

• Focused on combating energy uncertainties and addressing global warming

Local Initiatives for Network Management

• Managing challenges like distance from production sites and fuel supply
• Providing socio-professional support for workers