News Industry

Algeria Invests $1.2bn to Secure Summer Electricity Supply

Algeria Invests $1.2bn to Secure Summer Electricity Supply
Tuesday, 03 June 2025 10:40
  • Sonelgaz strengthens national grid ahead of expected summer power demand
  • 1,100 MW added to capacity along with new lines, transformers, and turbines
  • Measures also target fire prevention and support for remote areas

With the summer season leading to a significant increase in electricity demand in the Maghreb region, proactive steps are needed to prevent pressure on power networks. In anticipation of this, Algeria, through Sonelgaz, the public electricity and gas provider, has invested 168 billion dinars ($1.2 billion) to bolster the country's entire electricity network ahead of the expected surge in domestic electricity consumption in summer.

According to local press reports on Sunday, June 1, this financial package aims to lessen the risk of power outages during the summer months from June to August. The weather forecast for summer 2025 in Algeria indeed suggests high temperatures and demanding weather conditions, mainly in July and August.

In this context, marked by high heat, the Algerian state anticipates a considerable increase in electricity demand, especially for air conditioning, and a boost in residential and industrial usage that can put significant stress on electrical infrastructures.

To counter this, the public group has rolled out an action plan focused on increasing production capacity and enhancing transport and distribution infrastructures.

Specifically, more than 1,100 additional megawatts have been integrated into the network. Six new transformers, 35 high-tension lines, and over 2,000 kilometers of distribution network have been established. Special attention has been given to the southern regions, with mobile gas turbines installed in isolated areas.

The plan also includes preventive actions against forest fires, a common occurrence in the summer. It does more than just ensure energy security; it also enhances the reliability of the national electrical network.

This strategy could also foster economic activity in remote areas of the country, where difficulties accessing electricity can hinder certain development projects, even though Algeria's electricity coverage reached 98% by the end of 2023, according to Sonelgaz.

Sonelgaz has announced a 2025 investment plan of 650 billion dinars (about $5 billion), "mainly aimed at increasing its production capabilities and optimizing the quality of its services."

On the same topic
Africa Energy, now operator of South Africa's 11B/12B offshore block, is in talks with PetroSA to utilize its infrastructure. The aim is to develop...
Perseus plans to produce between 2.6 and 2.7 million ounces of gold from 2026 to 2030 About $878 million will be invested,...
Petronas to lay off 5,000 staff as part of a major restructuring for future competitiveness African operations not directly addressed, but changes...
• Nigeria’s $5 billion loan from Saudi Aramco stalls due to falling oil prices• Deal tied to 100,000 barrels per day faces risk amid production...
Most Read
01

BCEAO lowers main rate from 3.50% to 3.25% effective June 16, 2025 Inflation eased to 2.3% in...

BCEAO Cuts Key Rate to 3.25% to Stimulate Regional Growth
02

AfDB raised $3 billion in a two-part bond issuance in U.S. dollars. The deal included th...

AfDB Raises First-Ever 10-Year Global Dollar Bond
03

IFC to acquire stake in KERA Health, an AI-based e-health platform in Senegal Funding to supp...

IFC Plans $10mln Investment in Senegalese AI Health Startup
04

• WAEMU’s inflation dropped from 2.2% in March to 1.5% in April 2025• BCEAO attributes the decline t...

WAEMU Inflation Rate Falls to 1.5% in April 2025
05

• Funding resumes after 2023 suspension tied to Uganda’s anti-LGBT legislation• Three new projects a...

World Bank Resumes Support to Uganda Despite LGBT Law Concerns
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.