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Algeria energy report
- The country plans to reduce its dependence on hydrocarbons through a diversification of its exports and the development of renewables, with 16 GW planned for 2030.
- Two public companies dominate the energy markets: Sonatrach for hydrocarbon production and trade and Sonelgaz for electricity and gas distribution.
- Electricity production has grown by 6%/year since 2012 and is almost entirely based on gas.
- Since the outbreak of the Ukrainian war, gas exports have increased by 33% since 2020.
- Oil production is almost back to its pre-COVID level.
- Motor fuel prices increased by 60% between 2015 and 2018 and have remained stable since then.
- After rising sharply in 2019, gas prices have decreased back to their 2018 levels.
- Energy prices are very low compared to the European average: 3 times lower for motor fuels and electricity, and 10 times lower for household gas (at ppp).
- Energy consumption has increased by 3%/year since 2020.
- Algeria aims to attract international investors to offset its declining production and to maintain its exports.
- To face the expected increase in electricity demand, the country is developing natural gas and solar power projects.