From the Sahara to Europe: Algeria's solar strategy

Due to its privileged geographical location and Saharan expanse, Algeria is now one of the world's richest countries in terms of solar radiation. With a national average of over 3,000 hours of sunshine per year, and peaks of up to 3,900 hours in the far south, the country has an outstanding comparative advantage. This light intensity results in radiation exceeding 2,500 kWh per square metre per year, placing Algeria at the heart of global energy issues in the 21st century.

Production capacities on a par with major industrial powers

Algeria's potential is no longer just a theoretical estimate. According to projections by the International Renewable Energy Agency (IRENA), Algeria has staggering exploitable capacity. In a moderate scenario, the country could generate 50 gigawatts (GW) of solar energy, or about 100 terawatt hours (TWh) per year. However, the country's ambitions are even higher. In an optimal development scenario, this capacity could be increased to 150-200 GW, with annual production ranging from 350 to 400 TWh. By way of comparison, these figures are equivalent to the total electricity production of some of Europe's largest industrial powers.

The year 2026 will mark a decisive turning point in this energy boom. Several large-scale solar power plants, totalling 1,480 megawatts (MW), will come online. On the ground, construction is progressing at a steady pace: the Tendla plant in the wilaya of El-M'Ghair is already 93% complete, while the El-Ghrous plant in Biskra is 86% complete. Other strategic projects are also making significant progress in El-Oued, Ouled Djellal, M'sila and Abadla.

Algeria's ambition extends beyond its borders

The country is currently structuring its strategy to become a key supplier of clean energy for the European continent. This deployment is based on three major strategic areas. The first area concerns submarine electrical interconnection. The Medlink project, an energy highway, involves laying a high-voltage cable connecting Algeria to Italy via Tunisia. With a transfer capacity of 2,000 MW, this infrastructure would enable the export of around 28 TWh per year to Europe, covering nearly 8% of Italy's electricity consumption. In economic terms, this flow could generate annual revenues for Algeria estimated at between €1.5 and €2 billion. The second, equally revolutionary, focus is on green hydrogen. By joining the SouthH2 Corridor project, Algeria is connecting to a 3,300-kilometre corridor linking the Sahara to Germany via Italy and Austria.

The goal is to transport 4 million tonnes of green hydrogen per year by 2040, representing 10% of total European demand forecast for that date. However, the national strategy does not neglect internal technological development. The target for 2035 is to achieve an installed capacity of 15,000 MW of renewable energy, bringing the share of clean energy in the national energy mix to between 30% and 40%. With this in mind, the urgent programme for the period 2024-2026 already provides for the construction of 3,000 MW spread over 15 solar power plants in 12 wilayas, including Béchar, Laghouat and Touggourt. In addition to domestic consumption, this energy will be the driving force behind the country's digital sovereignty.

Algeria aims to become a hub for hyperscale data centres. These giant data centres, which consume enormous amounts of electricity, will find a stable, sustainable and competitive energy source in Algeria, making the country an essential hub for the global digital economy. The organisation of the upcoming summit in Algiers perfectly illustrates the Algerian government's desire to move from strategic vision to operational execution by establishing a framework for ongoing consultation that respects mutual interests and ensures energy security on both sides of the Mediterranean.

To this end, in the coming months, Algiers will welcome delegations from five key nations – Algeria, Tunisia, Italy, Austria and Germany –  to give concrete operational momentum to the ambitious South H2 Corridor project. "Algeria will host this major event to coordinate the practical implementation of the South Hydrogen Corridor, bringing together all stakeholders around a common roadmap," said Mr Hedna, emphasising the government's commitment to turning these ambitions into tangible realities.