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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."

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