Algeria - Country Commercial Guide

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-10-11


Algeria recorded rapid growth in energy demand over the past decade driven by increased consumption in its residential, commercial, and industry sectors.  With an electrification rate of more than 99 percent, it is the most electrified country in Africa, and its power generation, distribution, and transmission systems are comparable to many U.S. utilities. Over the last six decades, power generation grew at an annual growth rate of seven percent and is expected to grow 8.5 percent annually through 2025.  Algeria will invest in grid expansion and upgrades to accommodate growing demand, notably by deploying a smart metering and grid system with more than 30,000 kilometers of transmission lines.

Between 2022 and 2030, increasing demand will require 5,000 to 7,000 megawatts (MW) of new conventional power generation, which will lead to an estimated investment of $1 billion per year for the construction of up to seven power plants. General Electric (GE)-certified suppliers are well-positioned to bid as suppliers or manufacturing partners alongside GE Algeria Turbines (a joint venture between GE and Sonelgaz that manufactures gas and steam turbines, generators, and control systems) to develop this capacity. American companies with advanced capabilities in power transmission, specialized training services, and spare parts manufacturing are also poised to capture opportunities related to the maintenance and repair of conventional power plants, the expansion of the transmission grid, and the development of a smart grid. 

The state-owned utility company Sonelgaz and its subsidiaries hold a monopoly in electricity transmission and distribution, gas transportation, power distribution, and related manufacturing and research and development. Sonelgaz’s subsidiaries in the power sector include the Power Generation Company (SPE), the Electricity Transmission Grid Management Company (GRTE), the Electricity and Gas Distribution Company (SADEG), the Electricity System Operator (OS), the Electricity and Gas Engineering Company (CEEG), and Shariket Kahraba wa Taket Moutadjadida (SKTM), which is responsible for renewable energy power generation.  Sonelgaz awards contracts on a best value basis (e.g., the best technology possible at the lowest price).  Among Sonelgaz’s subsidiaries, GRTE is most actively seeking to diversify its suppliers beyond traditional European manufacturers and is working with the U.S. Trade and Development Agency to enhance its grid management infrastructure and capabilities in the power distribution field.  

The main competition for U.S. firms in the power generation and transmission segments is from Germany, Spain, France, Greece, Turkey, and South Korea. There are only two European competitors, Schneider Electric and Ekos, in the distribution segment. U.S. companies that enter the market intending to invest in local manufacturing and technology or are seeking to develop business plans to export power equipment and services from Algeria to neighboring countries will be the most competitive.

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Source: Algeria Ministry of Energy

Leading Sub-Sectors/Best Prospects

  • Gas-fired power plant equipment
  • Project engineering, management, and technical assistance services for PV and wind power plants
  • Advanced energy storage systems
  • Digital control and demand systems for substations
  • Smart meters and smart grid solutions
  • Interconnection lines for renewable energy dissemination into the national electric grid


In addition to opportunities in conventional power, by 2035, Algeria aims to produce 15 gigawatts (GW) of capacity from renewable energy sources.  Up to 65 percent of this will come from solar photovoltaic (PV) and 23 percent from wind energy.  To facilitate the country’s energy transition, in 2021 Algeria launched a new national energy company, SHAEMS, that will serve as a one-stop-shop for international suppliers and investors. The country’s first renewable energy megaproject will be a 1,000 MW solar PV energy project consisting of approximately seven 150 MW projects. Initially scheduled for release in the Summer of 2021, the tender will likely be released in late 2021 or 2022.  American suppliers of rotors, swiveling equipment, batteries, inverters, and sun-tracking devices are well-suited to supply consortiums bidding on these projects.


Major Trade Shows

  • Electricity Expo – November, Algiers
  • Exhibition of Renewable Energies (ERA) – October, Oran

Listings of Public Procurement Announcements

  • For more detailed information on Sonlegaz procurements, please visit the BAOSEM website (, the Official Gazette for Energy & Mines Government Procurement Tenders.

Commercial Specialist

  • For further information and assistance in exploring opportunities in Algeria’s power sector, contact Kamal Achab, Senior Commercial Specialist, U.S. Commercial Service Algiers,