Algeria is located in North Africa with a population of over 44 million people. Sonelgaz, the state-owned utility company, dominates the electricity market, handling all aspects of electricity, including generation, transmission, and distribution.
Electricity generation in Algeria is mainly from natural gas, with a small amount from hydropower and renewable sources. Sonelgaz operates several thermal power plants nationwide, which provide most of the country’s electricity. The transmission and distribution network is also operated by Sonelgaz and covers most of the country.
In terms of electricity consumption, Algeria’s electricity demand has been steadily increasing over the past decade, driven by population growth and economic development. In 2020, the country’s electricity consumption was around 71 TWh. The residential sector is the largest electricity consumer in the country, accounting for around 42% of total electricity consumption. The industrial sector is the second largest consumer, accounting for around 36% of total consumption.
Despite having vast renewable energy potential, Algeria has yet to fully exploit it. With its strategic location, the country boasts one of the world’s highest solar potentials. The annual solar exposure duration across the nation exceeds 2,000 hours and can even reach up to 3,900 hours in the high plateaus and Sahara.