From around the world: Algeria's energy sector is betting on solar and hydrogen

Algeria is one of the world's largest producers of natural gas and oil, which are its main exports and the country's dominant energy sources. However, with growing demand for electricity, Algeria recognizes the need to make greater use of renewable sources such as photovoltaic power plants and hydrogen production.

Doubling electricity consumption
Natural gas accounts for 98% of electricity production, and demand for electricity is growing by an average of 5% per year. The growth in domestic electricity and gas consumption is mainly due to new customer connections, the construction of seawater desalination plants, new industrial projects, increased use of irrigation, and population growth.

If current legislation remains in place, Algeria's electricity consumption is expected to more than double from 65 TWh to 150 TWh by 2030, with approximately 80% consumed by the residential and public sectors (if this trend continues, most of the natural gas would be consumed domestically, which significantly threatens gas reserves and revenues from its export).

Fluctuating raw material prices
Given the drastic fall in oil and gas prices in recent years and the associated significant decline in government revenues (which only ended with the rise in prices of these raw materials in 2021), the Algerian government is increasingly aware of the need to diversify the economy and not rely on volatile markets.

It has therefore approved a program for the introduction of renewable energy sources and plans to issue international public tenders for photovoltaic and wind power plant projects on an ongoing basis. Between 2021 and 2035, Algeria wants to launch renewable energy projects with a total capacity of 15 TW. It also has new plans to produce hydrogen from renewable sources in the future.

New solar projects
In 2022, the government launched the "Solar 1000 MW" project, which will see the construction of solar power plants with a capacity of 50-300 MW in 11 locations covering a total area of 4,250 hectares in six regions in southern Algeria. The total capacity of photovoltaics under this project should reach 1,000 MW.

The year before last, another phase of construction of photovoltaic power plants with a total capacity of 2,000 MW was launched. Algerian state-owned companies will cooperate with private domestic and foreign companies on the project. Further construction of solar power plants is planned.

Czech companies could become involved in similar projects in the future. Other opportunities relate to innovative technologies in the field of renewable energy sources, hydrogen, energy efficiency, and the modernization of existing power plants and distribution networks.