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Algeria is accelerating its shift towards solar energy.
Electricity production in Algeria relies largely on natural gas, which constitutes the main source of the national energy mix. But the country is accelerating its shift towards solar energy, in a context of continued increase in demand, particularly marked during the summer period.
According to the specialized platform “Attaqa”, Algeria produces more than 96.3 terawatt hours per year and manages to cover consumption peaks recently exceeding 20,000 megawatts, while generating a surplus allowing export to neighboring countries, notably Tunisia. This performance is based on an installed capacity of 27,330 megawatts and significant natural gas reserves estimated at 4,500 billion cubic meters.
Despite nearly 99% gas domination, Algeria has initiated a strategy to diversify its electricity mix, driven by major renewable energy projects, such as the “Solar 1000” program and the construction of 2,000 megawatts of solar power plants distributed in 12 wilayas, according to the same source.
In 2023, natural gas generated 95 terawatt hours out of a total of 96.3 terawatt hours. Solar energy remains marginal for the moment at 0.87 terawatt hours, while wind and hydraulic are each limited to 0.02 terawatt hours. However, the vast national gas reserves make it possible to ensure stable and efficient operation of power plants, without dependence on imports.
The latest data for 2024 shows a 5.4% increase in electricity demand. According to the International Energy Agency, this growth is expected to continue at an average rate of 5.2% until 2027. Under normal conditions, demand is around 17,000 megawatts, but it reaches 20,500 megawatts during summer peaks, specifies the same source.
Algeria recorded a historic record on July 24, 2025, when peak consumption reached 20,628 megawatts, surpassing the previous peak in summer 2024 set at 19,000 megawatts. This increase is largely attributed to heat waves and high humidity.
In this sense, Sonelgaz ensured uninterrupted power supply, while maintaining daily exports of 500 megawatts to Tunisia. The full entry into service of the Mostaganem power plant (1.5 gigawatts) planned for 2025 should further strengthen the capacities of the national network and open up new export prospects to Europe.
To support the rise of clean energy, Algeria has allocated $1.5 billion to the construction of 880 km of transport lines linking the North to the Deep South. At the same time, the country is deploying 20 solar power plants with a total capacity of 3 gigawatts.
The ambition to export to Europe is also taking shape. Sonelgaz and Sonatrach signed a memorandum of understanding with the Italian ENI for a feasibility study of an electrical interconnection between Algeria and Italy, a project likely to transform the country into a regional energy hub. The Bellara power plant (Jijel), with its 1,600 megawatts, illustrates this dynamic of modernization and increase in power of the national electricity system.
“If gas remains the majority today, Algeria is moving forward in its energy transition by banking on exceptional sunshine of up to 3,900 hours per year in certain regions, a considerable asset for the production of clean and sustainable electricity,” estimates the same source.