Algeria is advancing its energy diversification strategy with a sharp focus on renewable energy, green hydrogen,and revitalizing its traditional oil and gas development. The government has identified the energy sector as a strategic driver of socioeconomic growth and implemented a number of policies and mechanisms – such as the establishment of a new Ministry of Energy Transition and Renewable Energies and a comprehensive national roadmap – to drive foreign investment and diversify its energy mix.
Increasing Renewable Energy
Through its National Program for the Development of Renewable Energies, Algeria aims for a 30% renewable energy share – equating to 15,000 MW – by 2035. The country is positioned to leverage its immense solar potential, aiming to add 22 GW of renewable energy by 2030. This includes a mix of solar photovoltaic (13.5 GW), wind (5 GW), concentrated solar power (2 GW) and biomass (1 GW).
In September 2024, a consortium comprising China International Water & Electric Corporation and China Nuclear Industry Huaxing Construction began construction on five solar power projects totaling 780 MW. These projects include a 220 MW plant in Batmet, a 200 MW plant in Gueltet Sidi Saad, another 200 MW plant in Douar El Maa and two 80 MW plants in Abadla and Ouled Djellal Wilaya. To support these developments, the consortium has supplied Astroenergy n-type TOPCon solar modules, integrating advanced technology into Algeria’s high-level expansion strategy.
In March 2024, Turkish firm Özgün Ínşaat launched construction of the Hassi Delaa Solar Power Plant in Laghouat. With completion expected by late-2025 or early-2026, the plant is set to support Algeria’s energy grid with a capacity of 362 MW. In the same month, China State Construction Engineering Corporation began construction of a 300 MW solar power plant in Ouargla Province, as well as a 200 MW solar power plant in El M’Ghair. Construction firm COSIDER Canalisations began work on three solar power plants last year. The plants, which hold capacities of 300 MW, 150 MW and 250 MW, respectively, will be situated in the Ouargla, Touggourt and Béchar Provinces and are expected to be completed within the next two years.
A Green Hydrogen Future
One of the most ambitious elements of Algeria’s diversification strategy is its goal to become a global hub for hydrogen development. With aims to meet 10% of Europe’s green hydrogen demand by 2040, Algeria is developing the SoutH2 Corridor, a 3,300-km hydrogen pipeline connecting North Africa to Italy, Germany and Austria.
The MOU recently signed between Algeria’s state-owned Sonatrach, Sonelgaz and a consortium of European partners – including VNG, Snam, Seacorridor and Verbund Green Hydrogen – highlights the country’s dedication to meeting growing global demand for low-carbon energy. The agreement not only reinforces Algeria’s connection with Europe, but also emphasizes the potential for green hydrogen to play a major role in the country’s future economy.
Revitalizing Oil & Gas Production
In tandem with Algeria’s push toward renewables, the country aims to unlock new oil and gas potential across six key sites – including M’Zaid, Ahara and Reggane. Algeria recently launched a 2024 bid round under the oversight of the National Agency for the Valorization of Hydrocarbon Resources, serving as a clear signal that the country is not abandoning its traditional energy sector. In fact, the Algerian government is investing $50 billion in oil and gas projects through 2027, targeting increased production from flagship assets as well as bringing new output online. Roughly 71% of the funds will be allocated to exploration and production, 18% to petrochemical projects, 5% to gas liquefaction and the remaining to the national pipeline network.
Meanwhile international energy companies are ramping up their activities in-country, with ExxonMobil and Chevron targeting the exploration of hydrocarbon resources in the Ahnet, Gourara and Berkine basins; TotalEnergies leading the appraisal and development of gas resources in the Timimoun region; and Eni and Equinor revitalizing the In Salah and In Amenas fields. A renewed focus on unconventional gas reserves – reflected through recent MoUs signed with energy majors ExxonMobil and Chevron – are set to tap into underexplored basins, while positioning Algeria as a critical supplier of gas to the global market.
