Algeria's Strategic Shift Towards Renewable Energy
According to a major American platform for consultation and visions for the future, Algeria has begun to make significant strides in the realm of renewable energy. Long recognized for its potential as a renewable energy giant, the country has initiated the effective implementation of several photovoltaic solar power plants. These projects are aimed at bolstering Algeria's production of clean electricity, with a target of generating 3,000 megawatts by 2025. A report by the American platform "Horizon Engage," which specializes in advising investors in emerging countries, highlights that Algeria's rich heritage in traditional hydrocarbons, such as oil and gas, and its role as a major gas supplier to the European Union, has historically led to a cautious approach towards renewable energy and the energy transition.
Historic Milestones and Future Goals
The situation, however, is evolving rapidly. The report underscores Algeria's vast potential in renewable energy, particularly in solar power. The Ministry of Energy has launched several solar power plant projects, similar to those initiated by the Minister of Energy and Mines, Mohamed Arkab. One of the key projects will commence in March 2025 in the state of Al-Mughayir, executed by a Chinese company. The Al-Mughayir solar station will install approximately 350,000 solar panels over 14 months, covering an area of 4 square kilometers, to produce 200 megawatts. This installation marks the first in a series of 20 projects that, upon completion within two years, will generate 3 gigawatts (3,000 megawatts) of clean electricity, increasing Algeria’s renewable energy production sevenfold. The report emphasizes that this initiative is a historic milestone, representing a crucial first step in the country's journey towards achieving its goal of producing 15 gigawatts (15,000 megawatts) of clean electricity from renewable sources by 2035.
Accelerated Shift Towards Renewable Energy The American platform report highlighted Algeria’s recent and accelerated shift towards renewable energy, driven by a new perspective among Algerian leaders. This shift, although late, recognizes that renewable energy is not a threat to the country’s esteemed hydrocarbon industry but rather a tool to maintain hard currency revenues amid structural challenges. Geographical Advantages for Renewable Energy The report emphasized that Algeria’s geography offers enormous potential for renewable energy production. As the tenth largest country by area, Algeria has abundant land suitable for renewable energy facilities. The desert regions, which cover most of the country, receive 3,500 hours of solar radiation annually, with an average annual solar radiation of 2,650 kilowatt-hours per square meter. Potential for Solar and Wind Energy Experts have estimated that the potential for solar energy production nationwide is equivalent to 40 billion barrels of oil, more than 200 times Sonatrach's total energy production in 2023. While wind energy in Algeria has not been extensively studied, recent research has identified several promising areas, estimating the country's total generation capacity at 4,000 gigawatts. Export Opportunities and European Market The "Horizon Engage" platform confirmed that exploiting even a small portion of this theoretical potential for solar and wind energy would enable Algeria to meet its domestic energy needs while producing surplus electricity for export. The country’s proximity to Europe makes the continent a prime market for green electricity. Timid Steps and Future Goals Despite being at the forefront, Algeria has taken only cautious steps to exploit this vast potential. The report urged Algeria not to waste more years in developing this sector, as happened previously. President Abdelmadjid Tebboune, upon taking office in late 2019, recognized that the country was off track with renewable energy, with production at only 440 megawatts, far below the set target. Revised Goals and Commitments Tebboune initiated a review and launched a new plan in February 2020, aiming to achieve 15 gigawatts of renewable energy production by 2035. Although less ambitious than the previous target of 22 gigawatts, Tebboune committed to this goal. During his election campaign, he promised voters a national program to develop renewable energy, using solar and wind to meet national needs and diversify exports away from hydrocarbons. Open Questions and Future Challenges The report concluded by highlighting several open questions regarding the renewable energy sector in Algeria. Key questions include whether Algerian leaders will ease restrictions on purchasing renewable energy, attract international expertise and financing, encourage private sector investment, review domestic energy prices to incentivize green energy production, begin construction of complementary wind energy facilities, and make significant investments in green hydrogen exports. Foreign Partnerships and Energy Transition Foreign partners are eager to see Algeria fully engaged in the energy transition and address these questions. The platform stressed that developing renewable energy sectors alongside the current oil and gas industry is the approach likely to lead to a successful energy transition in Algeria.