New Power Infrastructure Supports Three Key Algerian Agribusinesses

Algeria is advancing a significant electricity infrastructure program to support the operational launch of three large-scale agribusiness investments across its southern regions. This initiative involves the planned deployment of a 1,237-kilometre electricity network and 10 substations, specifically designed to supply projects located in Adrar, Timimoun, and Ghardaïa. Energy and Renewable Energy Minister Mourad Adjal has directed Sonelgaz to accelerate construction activities and intensify oversight of delivery schedules, ensuring infrastructure development aligns with industrial and agricultural expansion. The program encompasses the Qatar-backed Baladna powdered milk complex, Cevital’s sugar beet project, and the Algerian-Italian BF El Djazair grain and pulses venture, all of which will rely on reliable electricity for vital operations such as irrigation, storage, and industrial processing.

Each of these major projects represents a substantial investment in Algeria's economic landscape. The Baladna powdered milk complex in Adrar, a $3.5 billion Algerian-Qatari investment spanning 117,000 hectares, is set to meet 50% of Algeria’s powdered milk requirements upon full operation. It accounts for the largest share of the current electricity program, with 767 kilometres of power lines and eight substations. Progress reports indicate the completion of a temporary mobile substation, while a 150 MVA transformation facility is approximately 87% complete and a 220-kilovolt transmission line is 70% finished. In Timimoun, the BF El Djazair grain and pulses venture, valued at €420 million, has already completed its temporary electricity connection ahead of its initial wheat harvest and is now preparing for its second agricultural season. The project, covering 36,000 hectares, includes plans for irrigation networks, storage silos, and processing facilities. Meanwhile, Cevital’s $600 million sugar beet project in Ghardaïa, which includes a 1,200-hectare agricultural concession and a factory for local sugar production, has recorded sugar extraction rates between 18% and 20% during trial cultivation in 2024, with its industrial unit targeted to begin operations in 2028.

The strategic development of this energy infrastructure is crucial for integrating agricultural production with industrial processing across these ventures. Such expansion is set against the backdrop of Algeria’s growing electricity demands, which saw a national peak of 21,828 megawatts recorded in August 2026. The national effort to electrify agricultural holdings has also seen 107,704 connections since 2022. For these three large-scale projects, the successful delivery of power infrastructure in harmony with the deployment of irrigation systems, industrial equipment, and processing facilities is essential to prevent electricity supply from hindering production timelines. This comprehensive approach underscores Algeria's commitment to enhancing food security and diversifying its economy through targeted investments in key agro-industrial sectors.