Arabian Grid
Country Profile · June 2026

Algeria Renewable Energy Fact Sheet

Verified numbers, corrected tariffs, construction pipeline, regulatory timeline, and foreign ownership rules — all in one reference page.

CapacityVerified End-2025

446 MW installed renewable capacity

The verified operational renewable capacity is 446 MW. The commonly cited 880 MW figure includes announced and under-construction projects that have not yet reached commercial operation.

  • Solar PV: ~420 MW operational
  • Wind: ~26 MW operational
  • Other (hydro, biomass): negligible
PipelineUnder Construction

2.6 GW under construction; 1.48 GW by August 2026

Algeria has 2.6 GW of renewable capacity under active construction. A 1.48 GW tranche is scheduled to commission by August 2026.

  • Major sites: Hauts Plateaux, Sahara, and coastal provinces.
  • Primary EPCs: Chinese consortia (SEPCO, CMEC) with local partners.
  • Grid integration is the critical path risk.
TariffFIT

Corrected FIT: 15.94 DZD/kWh for 1–5 MW solar

Feed-in tariff for 1–5 MW solar PV projects is 15.94 DZD/kWh. Larger projects negotiate through bilateral utility agreements. The tariff is viable for distributed solar but marginal for utility-scale without concessional financing.

  • 1–5 MW: 15.94 DZD/kWh (fixed FIT)
  • 5–50 MW: negotiated tariff, typically 12–14 DZD/kWh
  • >50 MW / IPP: bilateral PPA with Sonelgaz
HydrogenSoutH2 Corridor

Hydrogen target: ~40 TWh/year by 2040

Algeria's green hydrogen target is approximately 40 TWh/year of renewable hydrogen production by 2040, primarily for export to Europe via the SoutH2 Corridor.

  • First major asset: $972M Chinese-built integrated facility.
  • Export route: pipeline via Tunisia to Italy.
  • Regulatory framework for hydrogen IPPs does not yet exist.
RegulationLaw 11-24

Foreign ownership caps and regulatory timeline

Law 11-24 governs renewable energy development. Foreign ownership is capped; Algerian majority partners are required in most configurations.

  • Foreign ownership cap: 49% in generation assets.
  • Permitting layers: Sonelgaz, Ministry of Energy, provincial authorities.
  • Grid connection studies: 12–18 months typical.
Targets2035

15 GW renewable target and $23B investment gap

Algeria's official target is 15 GW of renewable capacity by 2035. Closing the gap from 446 MW to 15 GW requires approximately $23 billion in investment, or roughly $1.7 billion per year.

  • Current investment rate is ~$400M/year; acceleration factor of 4x needed.
  • Domestic financing is constrained; foreign capital requires JV structures.
  • Execution risk is higher than funding risk.