Algeria Adds Historic 2.74 GW of Power in Single-Year Grid Expansion

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Written by Yogesh Kumar for IIR News Intelligence (Sugar Land, Texas)

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Algeria has successfully finalized the largest power infrastructure expansion in its national history, which was coordinated by state utility giant Sonelgaz, fully integrating 2.74 gigawatts (GW) of cumulative new generation capacity into its operational grid as of August 2026. The immediate phase focused on a 1.85 GW pre-summer emergency package. While natural gas continues to dominate the generation mix at over 95% of total baseline capacity, this historic expansion marks an aggressive operational turn toward renewable diversification. Roughly 1,480 MW (1.48 GW) of the new capacity consists of utility-scale solar photovoltaic (PV) assets.

Looking at the five-year horizon, Algeria's Ministry of Energy is preparing an estimated US$60 billion capital expenditure roadmap through 2031. This includes a massive auction framework to secure the remaining blocks of its 15 GW by 2035 solar target.

Industrial Info Resources is tracking 58 capital Power Industry projects in Algeria, with a total investment value of US$9.88 billion.

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