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Algeria targets 16 GW of renewable capacity by 2035

The Algerian government aims to reach 4 GW of renewable power capacity by 2024 and 16 GW by 2035. The previous objective was to reach 22 GW of solar capacity by 2030. The country is currently lacking electricity and gas supplies in some areas and the development of solar plants is expected to guarantee cheaper retail energy prices. Turning to solar power would help Algeria meet the growing demand for electricity and save 240 bcm of gas production for export purposes. 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 country.

In addition, the government hopes to develop the local solar industry, in an attempt to reduce the country's dependence on oil rent. The government also seeks to encourage the petrochemical industry to increase the national hydrocarbon production, meet national demand for oil derivatives and stimulate exports.

In November 2019, the People’s National Assembly, the lower house of Algerian parliament, adopted a new energy law pursuing the objective to boost investment in the hydrocarbon sector. The text introduces new types of contracts for companies eager to cooperate with Algerian national oil company Sonatrach on hydrocarbon projects, including production sharing, participation and risk services.

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