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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 supply and gas distribution.
- Natural gas production has increased by almost 30% since 2020.
- Electricity production has grown by 6%/year since 2012 and is almost entirely based on gas.
- Motor fuel prices have remained stable since 2018.
- After dropping sharply since 2015, gas prices have increased by 5% in 2023.
- Energy prices are very low compared to the EU 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.