Algerian solar power tiles

“In total, Algeria has an assembly capacity of 500 MW for solar modules, which is expected to increase to 600 MW to 700 MW by the end of 2025,” said Clean Power's Bakli. Alongside Zergoun, the manufacturer Lagua Solaire has 200 MW of annual capacity for solar panel production in Algeria.

Building on the Solar 2,000 MW and Solar 1,000 MW programs launched by Algeria's state-owned company Sonelgaz, which include a wide range of solar energy initiatives, the government aims to diversify its revenue streams and reduce reliance on natural gas, which is currently primarily used for power generation in the country.

Algeria's Hamdi Eurl won two 80 MW plants and domestic PV panel maker Zergoun, alongside Ozgun, secured 80 MW in Guerara. The 19 projects represent an investment of €1.8 billion ($1.96 billion) and the solar power prices proposed by the bidders ranged from €0.54/W to €0.81/W, with an average price of €0.625/W.

Offering its companies a low electricity price of about DZD 4.68 ($0.03)/kWh, Algeria envisions becoming a hub for solar glass production, both for its domestic market and for US manufacturers, to replace Asian markets affected by an import ban on their photovoltaic equipment.

The country has an average of 3,000 hours of sunshine per year and global horizontal irradiation of almost 1,700 kWh/m²/year in the north and 2,263 kWh/m²/year in the south. Nevertheless, nearly 100% electrified Algeria generates 99% of its energy from domestic gas.

To gradually replace its gas and oil exports, Algeria aims to position itself on the international energy scene as a supplier of blue hydrogen (produced by steam reforming gas equipped with carbon capture technology) and green hydrogen (produced via electrolysis powered by renewables).