Algeria Accelerates Energy Transition, Expands Renewables and Hydrogen Ambitions
BY Dr. Hana Saada
Algeria, a major hydrocarbon producer, is accelerating its energy transition through a series of structured investments in renewable energy and green hydrogen, according to a report by the German Trade and Investment Agency (GTAI).
Despite its significant hydrocarbon reserves, the country is pursuing what the report describes as a clear strategy to avoid lagging behind global developments in clean energy, with large-scale solar projects gradually coming online and new investment programmes underway.
The report notes that Algeria aims to reach 15 gigawatts of installed renewable energy capacity by 2035, with several projects already feeding electricity into the national grid. In April 2026, two 200-megawatt solar plants were commissioned in El Meghaier and Biskra, while a total of 1,400 megawatts is expected to be added before the end of 2026.
These developments stem from tenders launched in 2023 for 3,000 megawatts of solar capacity, alongside additional projects totalling 520 megawatts awarded in 2025. Around 40% of the 22 solar plants currently under construction have been completed, according to the report.
GTAI said Algeria’s energy strategy is aimed at reducing reliance on natural gas in electricity generation, while preserving export capacity and meeting rising domestic demand through alternative sources.
The report also highlighted emerging domestic capacity in solar manufacturing, engineering and project development, alongside an untapped wind energy potential. It noted that only one wind farm, with a capacity of 10.2 megawatts in Adrar, is currently operational, while feasibility studies supported by the World Bank are assessing up to 1,000 megawatts of additional wind projects across ten sites.
To support renewable integration, Algeria is also developing major transmission infrastructure, including a 400-kilovolt high-voltage line stretching around 880 kilometres to connect southern regions to the national grid.
On hydrogen, the report said Algeria is positioning itself as a key player in the emerging green hydrogen economy, with ambitions to supply up to 10% of Europe’s hydrogen demand in the long term. The national strategy targets production of up to 40 terawatt-hours by 2040, with a significant share earmarked for export.
GTAI added that Algeria’s geographic proximity to Europe, extensive gas network, high solar potential and vast Sahara land resources strengthen its position as a future energy partner for Europe, particularly Germany. It also cited German development bank KfW’s support for a pilot green ammonia project in Arzew, near Oran.
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