Algeria Solar PV Market Report
This report will explore the current landscape of Algeria’s solar energy market, including qualitative and quantitative insights, market trends, relevant regulations and policies, and other key factors affecting the industry.
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About This Report
Algeria Solar Photovoltaic (PV) Market Trends
Algeria Solar Photovoltaic (PV) Market Forecasting
Algeria’s renewable energy sector is undergoing notable growth, with solar photovoltaic (PV) technology at the forefront. By the end of 2023, Algeria had 437 MW of solar generation capacity. To capitalize on its abundant solar resources, particularly in the southern Saharan region, the Algerian government launched the Renewable Energy and Energy Efficiency Program in 2011. This initiative targets a total PV capacity of xxx MW by 2030, highlighting the country’s long-term commitment to sustainable energy development.
The development of Algeria’s PV market is fueled by high solar irradiation levels, ambitious national targets, and efforts to diversify the energy mix. As the largest country in Africa, Algeria possesses vast solar potential that remains largely untapped. In line with its updated energy strategy, the government aims to add up to 15 GW of renewable energy capacity by 2035, with solar power expected to play a central role in meeting this goal.
Despite Algeria’s ambitious renewable energy goals, the sector faces several challenges that could impede progress. A significant hurdle is the complexity of the regulatory environment, coupled with the lack of local technical expertise and insufficient funding, which are major obstacles to the development of large-scale solar initiatives. Additionally, project delays are common, and timelines for solar installations often shift, making flexibility a crucial factor for investors. Nevertheless, Algeria’s vast solar potential and its commitment to large-scale projects are expected to create significant growth opportunities in the renewable energy sector.
Algeria's Solar PV Market Trends:
1. Utility-Scale Projects:
- 1,000 MW Solar Project: the tender is underway, with bids under evaluation for Algeria’s large-scale 1,000 MW solar project, which is overseen by SHAEMS, a state-owned company. This project is part of the country’s ambitious solar energy plans.
- 2 GW Solar Auction: Managed by Sonelgaz’s subsidiary S-EnR, Algeria’s 2 GW solar auction resulted in approximately 1.5 MW being awarded to Chinese firms, with the remaining capacity allocated to local Algerian companies. The total investment in this project amounts to US$1.2 billion.
2. Local Production and Component Manufacturing:
- Local Manufacturing Growth: Algeria is rapidly developing local production capacities for solar project components. Several local manufacturers produce essential parts playing a key role in supporting this growth. These efforts are aimed at boosting the domestic solar market while meeting local content requirements in tenders.
- Solar Glass Production: The country is also focusing on becoming a major hub for solar glass production. This is supported by the new 5 GW solar glass production line from Mediterranean Float Glass (MFG), which is set to supply both domestic and international markets.
3. Hybrid Solar-Oil Projects:
- Solar-gas Hybrid Power Plants: Algeria is also exploring solar-gas hybrid power plants to optimize energy production. A notable example is the Hassi R’Mel power station, which combines 25 MW of solar power with 130 MW of natural gas. This hybrid approach helps to balance the intermittency of solar energy with the stability provided by natural gas, allowing for continuous power generation.
Table Of Contents
- Research Design
- Objectives
- Information Resources
- Methodology
- Introduction
- Solar PV Initiatives and Programs
- Government Regulations and Policies
- Electricity Tariff
- Solar PV Installed Capacity
- Major Upcoming Solar PV Projects
- Solar PV Market Forecasting
Scope Of The Report
Algeria Solar PV Market is segmented by deployment type. Market sizing and forecasts are based on installed capacity (MW).
Deployment
- On-Grid
Frequently Asked Questions
By the end of 2023, Algeria had **** MW of solar generation capacity. The government has set a target to increase this capacity to **** MW by 2025, indicating significant growth in the sector.
Algeria’s energy transition includes expanding renewable energy, with a target of reaching 15 GW of renewable capacity by 2035, and solar PV expected to account for 37% of the national power supply by 2030.
The sector faces several challenges that could impede progress. A significant hurdle is the complexity of the regulatory environment, coupled with the lack of local technical expertise and insufficient funding, which are major obstacles to the development of large-scale solar initiatives. Additionally, project delays are common, and timelines for solar installations often shift, making flexibility a crucial factor for investors. Nevertheless, Algeria’s vast solar potential and its commitment to large-scale projects are expected to create significant growth opportunities in the renewable energy sector.
