Algeria Power Generation Market: Industry Analysis and Forecast (2022-2027) by Power Generation, Application, Type, and Region

Algeria Power Generation Market Overview:

Algeria Power Generation Market report examines the market's growth drivers as well as its segments. Data has been provided by market participants, and regions. This market study takes an in-depth look at all of the significant advancements that are currently occurring across all industry sectors. To provide key data analysis for the historical period (2017-2020), statistics, infographics, and presentations are used. The report examines the Algeria Power Generation market’s, Drivers, Restraints, Opportunities, and Challenges. This SMR report includes investor recommendations based on a detailed analysis of the current competitive landscape of the Algeria Power Generation market.

 

The rise of population in the 9^th most populated country in Africa and urbanization are expected to spur the Algerian power market. Algeria, a major producer of natural gas, aims to be a leader in renewable energy through its programs to boost the country's energy resources and promote long-term sustainable development.

 

Algeria Power Generation Market Dynamics:

Algeria's energy per capita consumption standing at 1.3 tonnes, is high compared to other emerging countries with similar levels of development, primarily due to consumption and losses in the energy industry, mainly in liquified natural gas plants. To meet the rising demand for power generation in Algeria, the government is taking significant steps to increase generation, focussing on renewable sources. By 2035, Algeria is expected to reach 15000 megawatts of electricity generation from renewable sources, growing by 1000 megawatts annually. Also, 1000 megawatts off-grid renewable energy facilities are scheduled to be operational by 2030.

 

 

Natural gas accounts for 96% of Algeria's installed capacity of 21,400 megawatts (MW), with the remaining 4% made up of a mix of oil, solar, hydro, and wind technologies. Algeria's energy regulator, the Commission for Energy and Gas Regulation (CREG), estimates that the total installed capacity will expand by roughly 45 percent to 36,000 MW by 2028. Furthermore, it receives almost 3,000 hours of sunlight per year, giving it significant solar potential, although it ranks third in Africa in terms of carbon dioxide (CO2) emissions, a potent greenhouse gas. Algeria, a member of OPEC since 1967, is one of Africa's top hydrocarbon producers, with oil and gas profits accounting for almost half of the national budget and 90% of export earnings in the past.

 

The country's National Renewable Energy and Efficiency Development Plan, unveiled in 2015, intends to boost domestic renewable power capacity to 22 GW by 2030, accounting for 27 percent of total domestic generation capacity. To meet its renewable energy objectives, the Ministry of Energy Transition and Renewable Energy requested investors for its first mega project of 1000 MW of solar photovoltaic power plants in the second half of 2021. The project is divided into 50 to 200 megawatt lots, with the idea to entice independent power providers (IPPs) to develop renewable energy resources, with solar being the most abundant.

 

Algeria encourages foreign investment in these projects and has changed several policies to facilitate it, such as permitting foreign corporations to possess a majority stake. There are plans for 60 solar photovoltaic facilities, concentrated solar power plants, wind farms, and hybrid power plants. Algeria's solar potential is enormous, projected to reach as high as 14 TWh per year due to its location in the Sahara Desert. By 2030, solar energy is projected to account for 30-40% of all electricity produced for household consumption. Thus Algeria is on a clear path toward a cleaner, more sustainable energy sector. While the specific direction and timeframe for the sector's development will be determined over time, the increasingly competitive economics of renewable energy technologies, expanding consumer demand, and Algeria's financial incentives to diversify its electrical sector drive the industry forward.

 

Algeria Power Generation Market Segment Analysis:

By Power Generation, Algeria Power Generation market is segmented into hydrocarbons, natural gas, solar, oil, wind, and hydroelectric energy. The power generation through conventional sources accounts for 70 percent of the power generated in Algeria, but the government is focused on the growth of the renewable industry to minimize its reliance on oil and gas and CO2 emissions. As a result, the government is anticipated to rely on renewable energy, particularly solar power, to boost power-producing capacity. Algeria's renewable aim is being pushed forward by the planned 4,000-MW Tafouk 1 solar plant. For the project, five tenders of 800 MW each are designed; Tafouk 1 could greatly enhance Algeria's manufacturing capacity for solar components, including modules, racks, cables, and other equipment, due to its scale and Algerian local content requirements.

 

Natural gas's share of installed generation capacity would drop to 84 percent under the proposed plan, while solar technologies' portion would rise to 15 percent. While this scenario is unlikely to satisfy the country's renewable energy targets, it would constitute a significant step toward integrating important renewable energy generation into the electricity grid.

 

By Application, Algeria Power Generation market is segmented into the commercial, industrial and residential sectors. Electricity consumption dropped by 4% in 2020 to 73000 GWh, although it increased rapidly by 8 percent from 2009 to 2019, with the electrification rate being close to 100%.

 

The residential sector accounts for 32 percent share of total power consumption in Algeria, followed by industry with 30 percent market share. With the promotion of development and urbanization, the industrial sector is expected to gain dominance in power consumption during the analysis period.

 

 

The objective of the report is to present a comprehensive analysis of the Algeria Power Generation market to the stakeholders in the industry. The report provides trends that are most dominant in the Algeria Power Generation market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Algeria Power Generation Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Algeria Power Generation market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Algeria Power Generation market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Algeria Power Generation market.

 

 

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Algeria Power Generation market. The report also analyses if the Algeria Power Generation market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Algeria Power Generation market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Algeria Power Generation market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Algeria Power Generation market is aided by legal factors.

 

Algeria Power Generation Market Scope:

Algeria Power Generation Market		Segmentation
Market Indicators:	Details	By Power Generation	Natural Gas Hydrocarbon Solar Oil Wind Hydro
Historical Data:	2016-2019	By Application	Residential Commercial Industrial
Forecast Period:	2021-2027
Base Year:	2020
CAGR:	%
Market Size in 2021:	US $ Mn.
Market size in 2027:	US$ Mn.

 

Algeria Power Generation Market Key Players: 

• General Electric Company
• Eni Spa.
• Condor Electronics SPA
• SOLIWIND Algérie Sarl
• Algerian Energy Company, Spa
• Algerian PV Company Sarl.
• Shariket Kahraba Koudiet Eddraouche.
• SGS Algeria
• Sonelgaz