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Algeria's primary energy source is natural gas, accounting for over 90 percent of its total energy consumption [1] . The country boasts as the 4th largest natural gas reserves in Africa and ranks 10th globally. This reliance on natural gas reflects its historical role as a major exporter of fossil fuels.  

The electricity mix in Algeria is heavily dominated by fossil fuels, with approximately 97 percent generated from Natural gas (63 percent) and Oil (34 percent). Only a very limited portion of the electricity mix comes from renewable sources, with Hydropower accounting for less than 1 percent, and Solar and wind contribution being negligible.   


Fig 1: Installed capacity trend in Algeria ( IRENA 2022 )


While fossil fuels currently dominate, Algeria recognizes the need to diversify its energy mix to achieve energy security and climate change goals. The government has set ambitious targets for increasing the share of renewable energy in the electricity mix with aims for achieving 27 percent renewable energy by 2030 [2]     



Fig 2: Electricity Generation trend in Algeria ( IRENA 2022 )

[1]    Status of renewable energy potential and utilization in Algeria – Science Direct

[2]    Our World In a Data -  Algeria: Energy Country Profile

General Information

In 2021, Algeria exported USD167M in Hydrogen, making it the 16th largest exporter of Hydrogen in the world. At the same year, Hydrogen was the 9th most exported product in Algeria. The main destination of Hydrogen exports from Algeria are: France (USD76.5M), Germany (USD18M), Spain (USD12.1M), Italy (USD11.3M), and Ireland (USD9.25M). The fastest growing export markets for Hydrogen of Algeria between 2020 and 2021 were Italy (USD10.2M), Spain (USD4.24M), and Switzerland (USD3.93M). [4]

In 2021, Algeria imported USD1.42M in Hydrogen, becoming the 107th largest importer of Hydrogen in the world. At the same year, Hydrogen was the 704th most imported product in Algeria. Algeria imports Hydrogen primarily from: France (USD953k), United Arab Emirates (USD128k), Spain (USD88.5k), Italy (USD78.9k), and Germany (USD65.5k).The fastest growing import markets in Hydrogen for Algeria between 2020 and 2021 were France (USD596k), Spain (USD63.5k), and United Arab Emirates (USD58.6k).

Algeria holds significant potential for green hydrogen development, however a comprehensive regulatory framework specifically for green hydrogen is still under development. There are several existing policies and initiatives that lay the groundwork for the future regulatory landscape.

Algeria is currently at the early stages of developing its hydrogen policy, but there are several key initiatives demonstrating their commitment to becoming a major player in the green hydrogen sector. Algeria has devised a National Hydrogen Roadmap, which was launched in March 2023, this roadmap outlines Algeria's plan to establish itself as a global leader in green hydrogen production and export by 2040. [5]

Key goals include:

  • Achieving 10 GW of electrolysis capacity by 2040.

  • Supplying 10 percent of Europe's hydrogen needs by 2040.

Generating USD1 billion in revenue from hydrogen exports by 2030.

The Algerian government has shown strong financial and regulatory support for the development of green hydrogen, such as tax breaks and financial incentives for companies investing in hydrogen projects, streamlining approval processes for hydrogen projects, and funding for research and development in hydrogen technologies.



Algeria boasts a well-developed electricity grid in the north, connecting major cities and industrial centers. However, the grid in the south, particularly in desert areas, is isolated and underdeveloped.

Integrating large-scale renewable energy generation, especially from remote desert locations, will require significant grid upgrades and expansion, particularly in the south. This requires substantial investments in transmission and distribution infrastructure.    Algeria aims to reach 15,000 megawatts (MW) of electricity generation capacity based on renewable resources by 2035, with a growth rate of 1000 MW/year. [6]

Repurposing existing natural gas pipelines for hydrogen transportation could be an efficient and cost-effective approach. This could also leverage existing expertise in managing pipeline networks.

Renewable Energy Potential:

Algeria possesses exceptional potential for renewable energy development, particularly Solar Energy, where the country enjoys high solar irradiance with an average of 3,000 sunshine hours per year in desert regions, offering excellent potential for solar photovoltaic (PV) and concentrated solar power (CSP) plants. Algeria has a long coastline with strong and consistent winds, particularly in the north, making it suitable for wind farm development. While currently limited, Algeria has some hydroelectric potential from dams and rivers that could be further explored.

Development Plans:

The government has ambitious plans to increase renewable energy capacity:

  • 15-20 GW by 2035, with a focus on solar and wind energy. [7]   

  • National Renewable Energy Strategy aims to diversify the energy mix and achieve a 27 percent renewable energy share in electricity generation by 2030. [8]

  • The Algerian government is offering incentives to attract investment in green hydrogen projects, including tax breaks and streamlined permitting processes.

  • International financial institutions and private companies are showing increasing interest in investing in green hydrogen projects in Algeria, particularly projects that focus on exportation to Europe.

Germany is funding a 50MW green hydrogen pilot plant in Algeria. [9] This project aims to encourage Algeria to invest in green hydrogen production and establish itself as a potential supplier for Europe. Germany and Algeria have a longstanding energy partnership and are committed to developing the necessary infrastructure for hydrogen transportation.

  • Algeria's national hydrogen strategy targets supplying 10 percent of Europe's hydrogen demand by 2040.

  • The SoutH2 corridor project is being developed to transport green hydrogen from Algeria to Europe through existing natural gas pipelines [10]

Algeria is exploring partnerships with Italy’s Zhero on renewables and green hydrogen. A form a committee will be established to facilitate knowledge transfer between the two sides and explore the viability of establishing an interconnector between Algeria and Italy for the transport of clean power to the EU. [11]