African Renewable Energy Expansion to Be Led by Algeria
Algeria is projected to lead Africa in renewable energy growth between 2026 and 2031, according to a continental study by Mordor Intelligence. The nation's renewable capacity is expected to expand at a Compound Annual Growth Rate (CAGR) of 42.51%, a rate significantly higher than the 15.62% forecast for the overall African market during the same period. This projection underscores Algeria's pivotal role in the continent's ongoing energy transition, with a strong focus on solar and green hydrogen.
The anticipated rapid growth is supported by recent advancements and substantial project commitments within the country. In April 2026, the Algerian Ministry of Energy announced the successful commissioning of two solar power plants, which collectively contribute 400 megawatts (MW) to the national grid. This achievement is part of broader governmental targets that included aiming for over 1,400 MW of additional capacity throughout 2026, demonstrating a tangible progression from strategic planning to operational infrastructure.
Looking forward, Algeria's ambitious national program aims to implement 15,000 MW of renewable energy by 2035. A key phase involves the development of 3,200 MW across 14 wilayas. Further solidifying these ambitions, Sonelgaz signed 19 contracts in March 2024 for the construction of 20 photovoltaic plants, totaling 3,000 MW, under the "2,000 MW" and "Solar 1,000" initiatives. These agreements encompass critical aspects from construction to testing and commissioning, highlighting the nation's commitment to realizing the projected growth in both solar and green hydrogen capacities. The successful realization of this trajectory will depend on the timely commissioning of projects, adherence to construction schedules, and securing necessary financing for future developments.
