By the end of 2023, Algeria's total renewable energy capacity had reached 600.9 MW, which includes hydroelectric power. Without hydroelectric power, total capacity stood at 472 MW, including 47.85 MW from off-grid sources.
Solar leads in renewable electricity production, with 436.8 MW of capacity. Around 388.95 MW (82.4%) of the PV total is connected to the grid, and 47.85 MW (10.1%) is off-grid.
PV developers installed 11.17 MW of new capacity in 2023, marking a 2.4% increase from the end of 2022. Only 1.54 MW of this capacity was grid-connected, a 0.36% increase from December 2022. Most of the new capacity, about 1.25 MW, went into solar systems for schools, adding 208 systems and bringing the total to 1,163 solarized schools.
Newly installed capacity was mainly off-grid in 2023, totaling 9.63 MW. This includes 5.28 MW for solar public lighting and 3.73 MW for PV kits for isolated areas. About 1,098 kits were distributed in 2023.
The Ministry of Energy and Mines (MEM), through national utility Sonelgaz, provisionally awarded contracts in 2023 for two major projects, totaling 3 GW. The 2 GW project will involve 15 solar arrays across 12 provinces, with capacities ranging from 80 MW to 220 MW each. The 1 GW project will include five PV power plants with capacities ranging between 50 MW and 300 MW. The MEM will sign contracts with the winning companies in March 2024.
The MEM also launched a tender for a 200 MW solar power plant with energy storage in the Ghar Djebilet region of Tindouf, to support an iron ore project that is now under development.
With the construction of these 21 solar plants totaling 3.2 GW, the cumulative installed renewable energy capacity in Algeria could soon exceed 4 GW.
This growth has spurred the emergence of several Algerian companies in the PV sector. By the end of 2023, Algeria had six PV module assembly factories with an annual production capacity of 469 MW, up 123 MW from 2022.
The industrial sector also includes two battery production plants, two solar water heater factories, two solar cable manufacturers, and four facilities for PV mounting systems and structures. In 2023, the country also inaugurated three new solar public lighting production units.