✏️ BY: Dr. Hana Saada
ALGIERS, ALGERIA | May 27, 2024 — The public group Sonelgaz has cemented its position as a cornerstone of Algeria’s national economic development strategy and energy transition policy, underscoring the critical importance of energy resources in supporting the diverse sectors driving the country’s growth. From economic expansion to energy security, Sonelgaz has emerged as an indispensable player in the government’s roadmap, with ambitions extending beyond national borders to become a key international actor.
Strategic Reorientation and Core Focus
The recent strategic reorientation of Sonelgaz, emphasizing its core activities, aims to position the group as a pillar of the national economy, particularly in the coming years. This is evidenced by the group’s entrusted role in implementing the national renewable energy program, focusing on solar energy, and supporting the national strategy for industrial and agricultural sector development. Sonelgaz’s significant contributions to Algeria’s socioeconomic development were highlighted by Energy and Mines Minister Mohamed Arkab during the group’s performance review presentation.
Minister Arkab emphasized the critical role Sonelgaz plays in supporting the national strategy for industrial and agricultural development. “The group plays a crucial role in the country’s economic development, particularly in connecting our citizens, agricultural concessions, and industrial zones to electricity and gas across the national territory,” the minister stated. He highlighted Sonelgaz’s impact on the country’s economic dynamism and the improvement of citizens’ daily lives.
Impressive Coverage and Connection Targets
Currently, Algeria boasts a 99% electricity coverage rate, serving over 11.87 million customers, and a 69% gas connection rate, with 7.7 million customers. “We aim to connect an additional 340,000 households to electricity and 140,000 households to gas by the end of 2025. Achieving this will require an investment of 140 billion dinars and the mobilization of all resources to meet the deadlines,” Minister Arkab explained.
Boost in Production and Renewable Energy Initiatives
Besides enhancing national production, particularly during a period of international market aspirations, Sonelgaz has embarked on a new era focusing on renewable energy, specifically solar power. This initiative is set to play a pivotal role in supporting the country’s economic momentum. Over the past four years, Sonelgaz has increased national electricity production by 4,500 GWh, from 85,754 GWh in 2022 to 90,000 GWh in 2023. This production boost coincides with Algeria’s robust industrial sector development policies.
A significant challenge that Sonelgaz has addressed is connecting industrial zones and activity areas to the electricity grid. For the current year’s program, the company plans to connect 11 new industrial zones to electricity and 21 zones to gas. This connectivity is crucial for launching industrial projects, as highlighted by Industry and Pharmaceutical Production Minister Ali Aoun. “The connection to electricity and gas has enabled the launch of 150 projects that were stalled for many years,” Minister Aoun remarked, underscoring Sonelgaz’s role in driving the country’s economic sector forward.
Supporting National Food Security
Sonelgaz is also integral to the national strategy aimed at ensuring food security through the electrification of agricultural concessions. Recently, the public group has connected over 64,268 agricultural zones to electricity, with another 12,375 concessions currently being electrified, according to the Ministry of Energy and Mines.
Sonelgaz’s contributions extend beyond mere utility provision; the group is a driving force in Algeria’s journey towards sustainable development and economic prosperity. By enhancing energy infrastructure, supporting industrial and agricultural sectors, and pioneering renewable energy projects, Sonelgaz not only fuels the nation’s growth but also paves the way for its future as a significant player on the international stage.
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