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Strong impetus given by public authorities to renewable energies
Energy transition
The Finance bill for 2026 (PLF 2026) grants operators and professionals in renewable energies the possibility of benefiting from a reduced customs duty of 5% on inputs used for the manufacture of photovoltaic solar panels. This reduction in the tax pressure on local manufacturers of photovoltaic solar panels is part of support for national production, particularly solar. This reduction decided by the authorities, if it is retained and voted by the National People’s Assembly, will make it possible to face competition in this area, exerted by imports of photovoltaic solar panels. It is also motivated by the imperative of energy security and the diversification of energy sources with cleaner and more sustainable alternatives, in order to protect the Algerian environment.
The public authorities thus indicate their desire to strengthen the structure of an efficient national industrial fabric, capable of meeting growing domestic demand, while supporting the ambitious projects that Algeria intends to implement in the field of renewable energies.
The PLF 2026 allocates the amount to the Ministry of Energy and Renewable Energy an amount of 57.53 billion DA in commitment authorization (AE) and 54.83 billion DA in payment credits (CP).
This involves carrying out the following operations: electricity connection across the wilayas of Tamanrasset, Djanet and Béjaïa; natural gas connection across the wilayas of Jijel, Mila, Timimoune; relocation of damaged gas structures; renewable energy program; re-evaluation of 3 operations relating to cooperation projects between the Draria Nuclear Research Center (CRND) and the Argentine company INVAP. Part of the ministry’s budget is therefore intended for the national renewable energy development program which aims to produce 15,000 MW in 2035.
In 2025, the construction of photovoltaic power plants for the production of solar electricity was launched by Sonelgaz, aiming for a production of 3,000 MW to which must be added the 200 MW of the solar power plant planned in Tindouf, as part of the Gara Djebilet mining project.
In the 3,000 MW program currently being implemented, the two photovoltaic solar power plants of El Ghrous (wilaya of Biskra) and Tendla (wilaya of El-Meghaïer), both of 200 MW each, should be completed by the end of 2025.
Another production program of an additional 3,000 MW is planned. The interest given to the development of renewable energies intended for the production of electricity is explained, in large part, by the impact on external revenues drawn from natural gas exports. The objective is to save natural gas which will be exported to European partner countries.
Recently, the Government has highlighted the State’s desire to make renewable energies a pillar of the country’s energy sovereignty and sustainable development. The Government also reported significant progress made in the development of national capacities, particularly in the manufacturing of certain equipment linked to this activity and in the construction of production infrastructure.
As a reminder, in the government formed on September 14, 2025, renewable energies are attached to Energy, in a new ministry entrusted to Mourad Adjal, CEO of Sonelgaz, the company which is piloting the national program for the development of renewable energies. It is now a matter of seriously carrying out the energy transition, consisting of the emergence of a new energy model, the development of renewable energies, the production of green hydrogen, energy saving, and also of guaranteeing energy security, by satisfying the demand of the population and the needs of economic activities.
Yesterday, on Channel I of Algerian Radio, Prof. Boukhalfa Yaici, general director of the Green Energy Group, confirmed that the PLF 2026 introduced four articles aimed at stimulating and strengthening the national industrial fabric associated with renewable energies. He considered that these measures open up vast prospects for the sector and demonstrate the desire of the highest authorities to accelerate the energy transition.
Lakhdar A.