Energy in Algeria encompasses the production, consumption, and import of energy. As of 2009, the primary energy use in Algeria was 462 TWh, with a per capita consumption of 13 TWh.[2] Algeria is a significant producer and exporter of oil and gas and has been a member of the Organization of the Petroleum Exporting Countries (OPEC) since 1969.[3] It also participates in the OPEC+ agreement, collaborating with non-OPEC oil-producing nations. Historically, the country has relied heavily on fossil fuels, which are heavily subsidized and constitute the majority of its energy consumption. In response to global energy trends, Algeria updated its Renewable Energy and Energy Efficiency Development Plan in 2015, aiming for significant advancements by 2030. This plan promotes the deployment of large-scale renewable technologies, such as solar photovoltaic systems and onshore wind installations, supported by various incentive measures.
In a strategic move to further develop its energy sector, the Algerian government announced in 2023 plans to offer at least 10 exploration blocks in its first upstream bidding round since 2014, signaling a proactive approach to expanding its oil and gas exploration efforts.[4][3] Complementing this initiative, Algeria has intensified its exploration efforts, resulting in eight significant discoveries this year alone. The country aims to increase its natural gas production from the current 137 billion cubic meters (Bcm) to 200 Bcm per year in the short to medium term.[5] As of 2024, Algeria is producing approximately 900,000 barrels of oil per day, aligning with its OPEC+ production target. Amid ongoing reviews of crude oil output capacities by OPEC+, Algeria has confidently projected that it will reach a production capacity of 1.155 million barrels per day by 2025.[6]
In 2023, Algeria had 159 trillion cubic feet (Tcf) of proven natural gas reserves. Between 2012 and 2021, annual dry natural gas production averaged 3.2 Tcf, while consumption averaged 1.5 Tcf. Despite a production drop in 2020 due to the COVID-19 pandemic's impact on economic activities, production rebounded to a record 3.6 Tcf in 2021. According to the Middle East Economic Survey, this increase was driven by upstream investments leading to new project startups and expansions, notably at the Hassi R’Mel field. Additionally, a decreased need for gas reinjection at oil fields allowed more natural gas to be available for domestic use and export.[8]
Natural gas Production 2011-2021 (billion cubic metres)[9]:29
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
79.6
78.4
79.3
80.2
81.4
91.4
93.0
93.8
87.0
81.5
100.8
Historically, Algeria has been a significant player in the global natural gas market. In 2009, it was the fifth-largest exporter of natural gas, with a net export of 55 billion cubic meters (bcm), trailing behind Russia (169 bcm), Norway (100 bcm), Canada (76 bcm), and Qatar (67 bcm). That year, Algeria was also ranked as the seventh-largest natural gas producer globally, producing 81 bcm, with the top producers being the USA (594 bcm), Russia (589 bcm), and Canada (159 bcm).[10]
Algeria electricity production by year
By 2021, Algeria's role in the natural gas sector had continued to grow. Its domestic production of natural gas reached 3,734,001 terajoules (TJ), a 28% increase from previous years. This escalation in production positioned Algeria as the second-largest supplier of natural gas in Africa, with a total supply of 1,775,215 TJ, following Egypt. This robust production not only meets domestic energy needs but also bolsters economic stability through exports and the provision of raw materials for key industries such as chemicals and plastics.[11]
Jijel power plant
Gas Pipelines
Algeria is a key player in the natural gas export market, primarily serving Europe through three strategic pipelines: the Trans-Mediterranean Pipeline (TransMed), the Medgaz, and the Maghreb-Europe (MEG) pipeline. The increased capacity of the Medgaz pipeline at the end of 2021 significantly improved its delivery capabilities to Spain. Despite encountering temporary disruptions in 2021 due to political tensions that affected the MEG pipeline, normal operations resumed in 2022 with an unconventional reversal, enabling Spain to export gas to Morocco.[12] Following the geopolitical shifts caused by Russia's invasion of Ukraine, Algeria has increased its role as a crucial supplier of natural gas to Europe, now accounting for about 14% of the European Union’s total imports of pipeline gas and LNG.[5] Additionally, Algeria is actively considering future pipeline projects like the Trans-Saharan Gas Pipeline, aimed at connecting Nigeria to European markets through Algeria, and the GALSI pipeline, which could potentially be utilized for transporting green hydrogen to Italy.[12]
Algeria is a member of OPEC and was the seventh-largest oil products exporter in 2008, accounting for less than 11% of the world's oil exports.[10] That year, the total global exports included 1,952 million tons of crude oil and 411 million tons of oil products. Prominent oil fields in Algeria include Hassi Messaoud, Ourhoud, and Rhourde El Baguel. As of 2022, the country produces approximately one million barrels of crude oil per day.
The country holds an estimated 12.2 billion barrels of proved crude oil reserves as of early 2023, producing high-quality, light, sweet crude oil with very low sulfur content, primarily the Sahara blend from Hassi Messaoud. Despite these high-grade reserves, Algeria faces challenges in attracting new investment to its aging oil fields, leading to difficulties in maintaining production levels.[13]
In response, the Algerian government introduced a hydrocarbons law in December 2019 to attract international investment by reducing taxes and simplifying the legal framework for upstream activities. Additionally, Sonatrach, the state-owned oil company, operates all national refineries and has begun construction on three new refineries—Hassi Messaoud, Biskra, and Tiaret—expected to begin operations within the next five years.[13]
In 2021, Algeria's total oil supply, combining crude and refined products, amounted to 902,997 terajoules (TJ), marking a 125% increase from 2000. This total includes crude oil production, imports, and adjustments for exports and storage. Domestic crude oil production alone accounted for 151.7% of the total crude oil supply in 2021, reflecting a 10% increase over the same period. Additionally, net crude oil exports constituted 34.4% of Algeria's total crude oil production in 2021, with the export share of crude oil comprising 25% of the total energy exports.[14]
Algeria primarily relies on fossil fuels for energy generation, with nearly 97% of its electricity capacity derived from these sources. The country has seen significant growth in its electricity capacity, which nearly doubled from 2011 to 2020, mainly due to the addition of more efficient natural gas-fired and combined-cycle gas turbine plants. However, Algeria is also aiming to increase its renewable energy capacity to 15 GW by 2035, starting with a solicitation for bids to install 1 GW of solar photovoltaic capacity divided into 11 projects. This move is part of the government's strategy to diversify energy sources and attract foreign investment in renewable energy projects.[16]
Natural gas was the predominant source of electricity generation, accounting for 99% of the total electricity production which amounted to 85,390 GWh. This significant dependence on natural gas is echoed in the growth of electricity production, which saw a 236% increase from 2000 to 2021.
Despite this heavy reliance on fossil fuels, electricity trade in Algeria remains limited, with net electricity exports comprising only 1.3% of the total production in 2021, although these exports have increased by 379% since 2000. The electricity sector is a major contributor to CO2 emissions, representing 30% of the country's total energy-related CO2 emissions. On a per-capita basis, electricity consumption in Algeria stood at 1.704 MWh in 2021, showing a 147% increase from 2000, reflecting ongoing economic and population growth. Additionally, the residential sector was the largest consumer of electricity, accounting for 39% of the final electricity consumption, followed by the industrial sector with 34%.[17]
Renewable Energy
Algeria is focusing on increasing its renewable energy output to 27% by 2035, primarily through solar power, leveraging its high solar irradiance and strong wind speeds. In efforts to conserve its hydrocarbon resources for export, the government has established partnerships with countries like China, Germany, and the US, centering on enhancing engineering, energy storage, and solar technology capacities. Key projects include a one-gigawatt solar initiative and Sonatrach's use of solar energy for its remote operations. The sector, predominantly managed by state-owned entities such as Sonatrach, Sonelgaz, and the Algerian Energy Company (AEC), also sees significant involvement from international firms, enhancing the local renewable energy infrastructure through investments and collaborative governmental agreements.[18]
Total renewable energy capacity 2014–2023 (MW)[19]:2
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
266
299
499
592
604
604
585
505
590
590
As of 2020, modern renewables accounted for just 0.14% of Algeria's final energy consumption, despite a significant increase of 52% in their usage from 2000 to 2020. This growth highlights Algeria's efforts to shift towards cleaner energy sources to reduce CO2 emissions and reliance on imported fossil fuels. Modern renewables in Algeria are primarily utilized for electricity generation and have potential applications in heating and renewable biofuels for transport. However, the country still faces challenges in phasing out traditional biomass uses, which adversely affect health and the environment.[20]
Significant reforms in hydrocarbons and investment laws since 2020 have improved the investment environment in Algeria, enabling it to attract deals with global energy companies like Equinor, Eni, and Occidental Petroleum. These reforms, designed to foster both domestic and foreign investment, reflect Algeria's broader strategy to diversify its energy portfolio and sustain its economic growth by leveraging its energy resources more efficiently and responsibly.[5]
Algeria has the highest technical and economical potential for solar power exploitation in the MENA region, with a potential of around 170 TWh per year.[21] The first industrial scale solar thermal power project has been initiated by inauguration of Hassi R'Mel power station in 2011. This new hybrid power plant combines a 25-megawatt (MW) concentrating solar power array in conjunction with a 130MW combined cycle gas turbine plant.
In addition, Algeria has launched in 2011 a national program to develop renewable energy based on photovoltaics (PV), concentrated solar power (CSP) and wind power, and to promote energy efficiency. The program consists of installing up to 12GW of power generating capacity from renewable sources to meet the domestic electricity demand by 2030.[22]
In 2023, Algeria launched a bid for the construction of 15 solar power plants across the country, each with a generation capacity of 80-220 MW, and a total capacity of 2,000 MW for the entirety of the project, with construction set to begin in 2024.[23][24]
completed 2016, Built by Sinohydro Corp (PowerChina), Yingli Green Energy Holding, HydroChina, owned by SKTM (Sonelgaz) [25]
Greenhouse gas emissions
In 2021, Algeria contributed 0.4% to the global CO2emissions from combustible fuels, based on data focused solely on emissions from fuel combustion within the energy sector. The total emissions were recorded at about 143.249 million tonnes (Mt) of CO2, which represents a significant rise of 133% compared to previous figures. The primary source of these emissions was the combustion of natural gas, which made up 62% of Algeria's total CO2 emissions from fuel combustion.[26]
Carbon dioxide emissions from energy 2011-2021 (MtCO2)[9]:12
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
100.6
108.9
115.4
123.6
129.0
127.7
130.7
137.7
142.5
133.3
139.7
The analysis of emissions by sector shows that electricity and heat production, along with the transport sector, were the major sources of energy-related CO2 emissions in Algeria, each contributing 30% to the total. These figures highlight the significant reliance on oil-based fuels in both the power generation and transportation sectors, despite the increasing adoption of electric vehicles. Meanwhile, the industrial sector, which includes the burning of fossil fuels for processes such as the production of paper or steel, also contributes notably to the emissions but to a lesser extent. Notably, emissions from specific industrial processes like cement production are not included in these figures, despite their potential significance.[26]
Nuclear Energy
To ensure Algeria diversifies its energy sources in preparation for the post-oil era, nuclear energy is the only energy source that could replace oil and gas, as its raw material is abundant in the country and just needs to be utilized.[27]
Since 1995 Algeria operates research reactors at Draria and Aïn Oussera. It signed nuclear cooperation agreements with Russia in January 2007, with the United States in June 2007, and with China in March 2008.[28][29] Algeria has discussed nuclear cooperation also with France.
For many years, Algeria has invested in nuclear technology. It has two nuclear reactors: the Draria nuclear reactor on the heights of Algiers with a capacity of 3 megawatts (MW), built by the Argentinians in 1984, and the Aïn Oussara reactor, located 250 km south of Algiers, built by the Chinese with a capacity of 15 MW. These two reactors are regularly inspected by the International Atomic Energy Agency (IAEA), of which Algeria is a member.[30]
The energy policy of India is to increase the locally produced energy in India and reduce energy poverty, with more focus on developing alternative sources of energy, particularly nuclear, solar and wind energy. Net energy import dependency was 40.9% in 2021-22.
Denmark has considerable sources of oil and natural gas in the North Sea and ranked as number 32 in the world among net exporters of crude oil in 2008. Denmark expects to be self-sufficient with oil until 2050. However, gas resources are expected to decline, and production may decline below consumption in 2020, making imports necessary. Denmark imports around 12% of its energy.
Iran possesses significant energy reserves, holding the position of the world's third-largest in proved oil reserves and the second-largest in natural gas reserves as of 2021. At the conclusion of the same year, Iran's share comprised 24% of the oil reserves in the Middle East and 12% of the worldwide total.
Norway is a large energy producer, and one of the world's largest exporters of oil. Most of the electricity in the country is produced by hydroelectricity. Norway is one of the leading countries in the electrification of its transport sector, with the largest fleet of electric vehicles per capita in the world.
Brazil is the 7th largest energy consumer in the world and the largest in South America. At the same time, it is an important oil and gas producer in the region and the world's second largest ethanol fuel producer. The government agencies responsible for energy policy are the Ministry of Mines and Energy (MME), the National Council for Energy Policy (CNPE), the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and the National Agency of Electricity (ANEEL). State-owned companies Petrobras and Eletrobras are the major players in Brazil's energy sector, as well as Latin America's.
Energy in Kazakhstan describes energy and electricity production, consumption and import in Kazakhstan and the politics of Kazakhstan related to energy.
The Energy in Russia is an area of the national economy, science, and technology of the Russian Federation, encompassing energy resources, production, transmission, transformation, accumulation, distribution, and consumption of various types of energy.
Energy in Mexico describes energy, fuel, and electricity production, consumption and import in Mexico.
EnergyinSaudi Arabia involves petroleum and natural gas production, consumption, and exports, and electricity production. Saudi Arabia is the world's leading oil producer and exporter. Saudi Arabia's economy is petroleum-based; oil accounts for 90% of the country's exports and nearly 75% of government revenue. The oil industry produces about 45% of Saudi Arabia's gross domestic product, against 40% from the private sector. Saudi Arabia has per capita GDP of $20,700. The economy is still very dependent on oil despite diversification, in particular in the petrochemical sector.
Energy in Paraguay is primarily sourced from hydropower, with pivotal projects like the Itaipu Dam, one of the world's largest hydroelectric facilities. This reliance underscores the need for a robust infrastructure, including efficient transmission networks and distribution systems, to leverage the country's renewable resources fully.
Energy in Italy comes mostly from fossil fuels. Among the most used resources are petroleum, natural gas, coal and renewables. Italy has few energy resources, and most supplies are imported.
The electricity sector in Switzerland relies mainly on hydroelectricity, since the Alps cover almost two-thirds of the country's land mass, providing many large mountain lakes and artificial reservoirs suited for hydro power. In addition, the water masses drained from the Swiss Alps are intensively used by run-of-the-river hydroelectricity (ROR). With 9,052 kWh per person in 2008, the country's electricity consumption is relatively high and was 22% above the European Union's average.
In 2019, the total energy production in Indonesia is 450.79 million tonnes of oil equivalent, with a total primary energy supply of 231.14 million tonnes of oil equivalent and electricity final consumption of 263.32 terawatt-hours. From 2000 to 2021, Indonesia's total energy supply increased by nearly 60%.
Energy in Libya primarily revolves around the production, consumption, import, and export of energy, with a significant focus on the petroleum industry, which serves as the backbone of the Libyan economy. As of 2021, Libya is recognized as the seventh-largest crude oil producer in OPEC and ranks third in total petroleum liquids production in Africa. The country holds 3% of the world's proven oil reserves and 39% of Africa's, marking it as a key player in the global energy sector. Despite its abundant resources, the energy industry in Libya has faced significant challenges due to political instability following the civil war that began in 2011. These challenges have led to frequent disruptions in oil production and exports, directly impacting the national economy and its contributions to the global oil market. The sector's future is closely tied to the resolution of political conflicts and the effective management of its vast hydrocarbon resources.
Primary energy consumption in Spain in 2020 was mainly composed of renewable sources. The largest sources are petroleum (42.3%), natural gas (19.8%) and coal (11.6%). The remaining 26.3% is accounted for by nuclear energy (12%) and different renewable energy sources (14.3%). Domestic production of primary energy includes nuclear (44,8%), solar, wind and geothermal (22,4%), biomass and waste (21,1%), hydropower (7,2%) and fossil (4,5%).
Energy in Iraq plays a crucial role in both the national economy and the global energy markets due to the country's vast oil reserves and significant status within the Organization of the Petroleum Exporting Countries (OPEC).
Energy in Jordan describes energy and electricity production, consumption and import in Jordan. Jordan is among the highest in the world in dependency on foreign energy sources, with 92.3% of the country's energy supply being imported.
Total primary energy supply (TPES) in Slovenia was 6.80 Mtoe in 2019. In the same year, electricity production was 16.1 TWh, consumption was 14.9 TWh.
Uzbekistan had a total primary energy supply (TPES) of 48.28 Mtoe in 2012. Electricity consumption was 47.80 TWh. The majority of primary energy came from fossil fuels, with natural gas, coal and oil the main sources. Hydroelectricity, the only significant renewable source in the country, accounted for about 2% of the primary energy supply. Natural gas is the source for 73.8% of electricity production, followed by hydroelectricity with 21.4%.
The energy sector in Tunisia includes all production, processing and, transit of energy consumption in this country. The production involves the upstream sector that includes general oil and gas, the downstream sector that includes the only refinery in Tunisia and most of the production of natural gas, and varied electrical/renewable energies. Renewable energy has been a strong point of focus for Tunisia as they look to optimize their green energy sources and advance their developing country. The Tunisian government has partnered with Russia and France in hopes of establishing nuclear energy as a viable alternative to fossil fuels and taking up a nontrivial chunk of the energy production in Tunisia. This is expected to be accomplished in the 2020s.
↑ Zhao, Liang; Wang, Wei; Zhu, Lingzhi; Liu, Yang; Dubios, Andreas (2018). "Economic analysis of solar energy development in North Africa". Global Energy Interconnection. 1 (1): 53–62. doi:10.14171/j.2096-5117.gei.2018.01.007. ISSN2096-5117.
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