Algeria’s public electricity and gas company, Sonelgaz, has announced plans to invest DZD656 billion ($4.94billion) in 2025 to enhance electricity production capacity and improve service quality.
Speaking at the annual meeting of Sonelgaz executives and directors of energy, mines and renewable energies, Sonelgaz’s Chief Executive Officer Mourad Adjal said the 56% increase in 2025 investment will go to domestic network expansion and electricity export growth towards Europe and Africa.
The announcement marks a significant 56% increase from the DZD420 billion ($3.16billion) which Sonelgaz invested in 2024.
The plan primarily aims to boost national electricity production capacity while improving service quality. It also includes connecting new industrial zones, desalination plants, remote regions and agricultural operations to the national grid.
The investment plan will also cover the deployment of carbon monoxide detection systems in relevant facilities and the initiation of renewable energy-related projects.
Algeria also plans to launch solar energy projects in the first phase of its renewable energy program, with a capacity of 3,200 MW with an estimated operation date of 2026.
Algeria to increase electricity production
Sonelgaz plans to soon increase its production capacity to more than 27,000 megawatts (MW) to meet high demand during the summer period.
The plan, disclosed at the meeting, will see the commissioning of additional production capacities estimated at 1,172 MW to ensure quality service delivery.
Because of this, Algeria’s overall production capacity will increase to 27,333 MW from 26,000 MW in 2024.
According to the group, peak electricity demand is expected to reach 21,500 MW because of extreme temperatures this coming summer, compared to 19,543 MW in the summer of 2024.
Algeria’s electrical exports
Sonelgaz also plans to increase its electricity exports by extending them to European and African countries through utilising its excess production capacity. According to Mr Adjal, the launch of these new exports would take place within two to three years.
“We want to expand our exports to European and African countries within two to three years”, Mourad Adjal said.
In 2024, Sonelgaz recorded $303million in electricity export revenues, up 22% from 2023. These exports include power deliveries to Tunisia, along with sales of Algerian-made electrical equipment and technical services abroad.
Mr Adjal also said agreements have been signed with energy companies in West Africa to develop electrical interconnections. In addition, Sonelgaz is cooperating with Italy’s Eni on a submarine cable project linking Algeria to Italy.
Meanwhile, Mourad Adjal stated that Algeria is in the process of revising its electricity law with completion planned for 2026.
