Algeria Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Algeria Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Algeria renewable energy market is expected to grow at a CAGR of over 1q% during the forecast period of 2020-2025. Factors such as diversifying the economy of the country and decreasing the dependence on the oil and gas sector are expected to drive the renewable energy market in Algeria. Moreover, diversification of energy mix offers multiple benefits, including job creation and energy security, which is further promulgating the renewable energy market in the country. However, factors, such as delay in governmental approval for the new projects, policy uncertainty, and lack of an efficient regulatory framework, have hindered the growth of the market in the country.

Key Highlights

• Solar energy is expected to be the largest market during the forecast period, with continuous growth in solar PV installations in the country in previous years. The government has planned several projects keeping in pace with the target of producing 22,000 MW of electricity by 2030, with solar energy expected to have the highest share.
• Algeria is considered to be one of the most energy-consuming countries, with the contribution of fossil fuels in electricity generation at more than 95%. Moreover, Algeria is vulnerable to climate change, which in turn demands for decreased use of fossil fuel. Hence, the government is planning to increase the share of renewables in energy generation in coming years, creating ample opportunity for the market players.
• The government’s plan to increase the share of renewables in energy mix by more than 25% by the year 2030, by creating a new national model for consumption of electricity with new projects aiming to advance a solar, wind, hydro and biomass power plants.

Key Market TrendsSolar Energy to Dominate the Market

• Algeria’s energy requirements are heavily dependent on natural gas, which amounts to more than 90% of power generation in the country. However, the country has enormous solar energy potential. The government expects to produce 37% of the total electricity from solar energy by 2020.
• According to IRENA, the total installed capacity for photovoltaic solar in 2019 was 423 MW. To harness the solar potential in the country, the government had taken initiatives, such as the Renewable Energy and Energy Efficiency Program (launched in 2011), under which the country aims to reach the total photovoltaic capacity of 13,575 MW by 2030.
• In addition, the country has also joined the Desertec Industrial Initiative, which aims to use Sahara solar and wind power to supply 15% of Europe's electricity needs by 2050. This is expected to increase the investments in solar energy projects, in turn driving the market for solar photovoltaic in the future.
• Moreover, to further support the sector ambitions, a new solar energy cluster was set up in 2017, for strengthening stronger ties between sector operators and consolidate activities throughout the value chain of solar power sector. Therefore, the above-mentioned factors are expected to drive the solar energy market during the forecast period.

Increasing Renewable Energy Demand to Drive the Market

• Conventional power generation methods like thermal power plants are finding it hard to meet this increase in demand, thus paving way for the growth of renewables. Another factor that is aiding the renewable industry is the efficient collaboration between the governments and the private sector. There is a growth in industrial investments backed by supportive government policies in renewable technologies.
• Algerian government also signed a memorandum of understanding with Dii Desert Energy, the operator of the Desertec project, which aims to create an extensive network of wind and solar installations in North Africa and the Middle East within 40 years.
• The country has set Renewable Energy targets to be achieved in two periods (2015-2020 and 2021-2030), by promoting photovoltaic, concentrated solar power (CSP), geothermal, wind, biomass, and cogeneration. By 2030, it is expected to produce a total of 22,000 MW by using renewable energy, with 12,000 MW devoted to the national market, and 10,000 MW to exports.
• Moreover, the government is adopting laws to define the guarantees, financial aid and tax incentives, granted to both public and private enterprises, to raise interest in investing in the renewable energy sector, in turn driving the renewable energy market during the forecast period.

Competitive Landscape

The Algeria renewable energy is moderately consolidated. Some of the key players are Algerian Solar Company, Sarl Algerian PV Company, Zergoun Green Energy, SCET Algeria Energy, and SKTM SPA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.