Algeria is set for more renewable energy generation

Significance

In March, Sonelgaz awarded 19 contracts for the installation of almost 3 gigawatts of solar power generation capacity. Increasing the renewables mix in Algeria's energy balance would release more natural gas for export, while also offering the opportunity to export electricity and green hydrogen to Europe.

Impacts

• If Algeria hits its target of 15 gigawatts of solar capacity, this would reduce natural gas consumption by more than 10%.
• Chinese participation in the recent contract awards will reflect a strong commitment to Algeria as a potential solar power hub.
• Algeria could also seek more US and broader Western investments in the renewable energy sector.