The Algerian Ministry of Energy has announced plans to commission 12 GW of additional power generation capacity to reach the 33 GW threshold by 2022. This programme is aimed at helping the country to meet its growing domestic electricity consumption, which has more than doubled since 2009 (+10%/year), bringing it to 64 TWh in 2017.
Algeria's installed power generation capacity has been increasing strongly over the last decade since nearly 7.3 GW have been commissioned over the 2010-2017 period. In 2017, it stood at 19.8 GW, of which 93% (about 18.4 GW) was gas-fired. At the end of 2018, the installed capacity was nearing the 21 GW milestone as new projects have been commissioned during the year.
In addition, Algeria aims to install 22,000 MW of renewables by 2030. The country's current solar power capacity is lower than 500 MW (425 MW of solar and 10 MW of wind in 2017). A call for tenders was launched in November 2018 for the construction of several solar photovoltaic (PV) power plants, with a total combined capacity of 150 MW. Besides, additional tenders for about 2,000 MW of solar capacity will be launched before the end of 2020. National power utility Sonelgaz aims to add 50 MW of renewables through a hybridization programme of its diesel-fired power plants in southern Algeria, while national oil and gas company Sonatrach plans a 1,300 MW solar programme to cover 80% of the electricity consumption of its oil sites.
Ramping up or maintaining the level of gas and oil exports so that they will be less used for power generation purposes is a top priority for the government. The share of exports in the total gas consumption has been decreasing over the recent years due to the rising domestic demand (56% in 2017 compared to 70% in 2008).