USA’s Horizon Engage Report Highlights Algeria’s Renewed Focus on Solar Power and Green Energy Solutions for 2025 and Beyond

BY: Dr. Hana Saada

Algiers, Algeria | December 21st, 2024 — Algeria, long referred to as a “giant” in renewable energy potential, is finally making significant strides toward harnessing its vast solar resources, with groundbreaking projects set to expand the country’s clean electricity production by 3,000 megawatts by 2025. In a new report from Horizon Engage, a major U.S.-based consulting platform specializing in emerging market insights, the country’s ambitious renewable energy shift is described as a pivotal moment for its energy sector.

Historically, Algeria has relied heavily on its rich oil and gas reserves, making its transition to renewable energy slow and cautious. However, recent developments indicate a major shift in policy and strategy, as the country begins to tap into its vast renewable energy potential, particularly solar power, which is abundant due to Algeria’s vast desert regions. The government is now actively rolling out large-scale solar projects, including the flagship solar station in M’ghair, where work began in March 2025 with the help of a Chinese contractor. The M’ghair plant will consist of approximately 350,000 solar panels installed over 14 months on 4 square kilometers, contributing 200 megawatts to the grid.

This project is the first in a series of 20 solar power plants expected to come online within the next two years. By the time these plants are fully operational, they will generate a total of 3 gigawatts (3,000 megawatts) of clean electricity, boosting Algeria’s renewable energy production sevenfold. Horizon Engage calls this first step towards solar power generation in Algeria a “historic milestone,” particularly for a nation that has been synonymous with oil and gas exports for decades.

A Rapid Transformation to Address Structural Challenges

The report also underscores the rapid pace of this transformation, which, despite its late start, has gained momentum due to a new vision among Algeria’s leadership. The country’s top policymakers now view renewable energy as a complementary solution to their traditional oil and gas industries, rather than a threat. This shift is seen as essential not only for meeting domestic energy demands but also for maintaining Algeria’s currency reserves amid global economic challenges.

Algeria’s vast geographical advantages, particularly its deserts which receive up to 3,500 hours of solar radiation annually, make it an ideal location for solar and wind energy development. The country’s potential for solar power has been estimated at an incredible 40 billion barrels of oil equivalent, a figure more than 200 times the energy produced by Algeria’s national oil giant, Sonatrach, in 2023. Additionally, wind power, although less studied, holds vast potential, with research estimating Algeria’s wind generation capacity at 4,000 gigawatts.

The Horizon Engage report suggests that utilizing even a small fraction of these resources could allow Algeria to meet its domestic energy needs and produce excess electricity for export, especially to Europe. However, despite this enormous potential, the country has only made modest progress toward its goals, and the report emphasizes that Algeria cannot afford to waste more years before fully capitalizing on its renewable energy resources.

A Clear Commitment to Renewable Energy

The report also highlights President Abdelmadjid Tebboune’s critical role in setting a more ambitious renewable energy agenda. Upon taking office in 2019, President Tebboune recognized the country’s failure to meet its renewable energy targets, with the country’s solar output standing at only 440 megawatts, less than a tenth of the original goal. In response, he launched a revised energy plan in February 2020, aiming for 15 gigawatts of renewable energy by 2035, down from the previous target of 22 gigawatts. Despite this adjustment, the report praises Tebboune for his leadership and his commitment to developing a national strategy that incorporates both solar and wind energy to meet domestic needs and diversify export markets beyond hydrocarbons.

However, the Horizon Engage report also raises critical questions that still need addressing. Among these are concerns about whether Algeria will ease restrictions on renewable energy purchases, attract international expertise and funding, and encourage private sector investment. Other key issues include the review of domestic energy pricing to stimulate local green energy production, and the development of complementary wind energy infrastructure.

Looking to the Future: A Green Energy Partnership with Europe

As Algeria moves forward with its renewable energy strategy, it stands at a crossroads, with a great opportunity to transform its energy landscape. The report notes that international partners are eager to see Algeria fully engage in this energy transition, as the country’s proximity to Europe makes it an ideal supplier of green electricity. The collaboration with global energy players and the development of green hydrogen projects will be crucial to positioning Algeria as a key player in the future of sustainable energy.

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