Sonelgaz International: A Catalyst for Boosting Energy Exports

"Sonelgaz International is a strategic tool designed to strengthen the group’s presence in overseas markets and to export Algerian expertise in the field of electricity and gas,” said Nabil Kafi, Secretary-General of the Ministry of Energy and Renewable Energy, on Monday during a broadcast on national radio.

The project to build a power station in Niamey is progressing at a steady pace

According to Nabil Kafi, this entity will enable Algeria to boost its export volumes, noting that 2026 is seen as the year of exports par excellence in this sector. In this context, he points out that since 2022, the Sonelgaz group has achieved remarkable results in the export of services and equipment, with a volume exceeding €200 million per year. “The aim is to increase this figure from 2026 onwards, particularly by entering new markets in Africa and other regions of the world,” he said, adding that Sonelgaz International’s mission is to support national companies and economic operators in promoting and exporting Algerian expertise and energy products.

Kafi also points out that Algeria has launched several initiatives aimed at exporting electricity and developing energy projects internationally, particularly with African countries, in order to create new opportunities. Regarding the project to build a 40-megawatt power station in Niamey, he notes that this is the young company’s first project in overseas markets. “Construction work is progressing at a steady pace. Some of the equipment has already arrived on site, whilst technicians and experts are also present to supervise the project’s implementation,” he reports. Furthermore, the construction of a power station in Mozambique is also planned, in addition to other projects with African countries.

900 megawatts allocated to domestic producers

Referring to the renewable energy development programme, Kafi stated that the ministry is prioritising local content. He noted that of the 15,000 megawatts planned by 2035, a 3,200-megawatt solar energy programme will be launched this year. Incentives have been granted to national companies to participate in this project, which, he explains, involves the construction of 21 solar photovoltaic power stations spread across 14 provinces, with capacities ranging from 50 to 300 MW per station. “Nearly 900 megawatts will be generated by national companies, including projects equipped with locally manufactured solar panels,” he said, adding that the programme should enable Algeria to become one of the leading African and Arab nations in the field of clean energy.

With regard to green hydrogen, the aim is “to produce and export, in the medium to long term, between 2030 and 2045, around 40 terawatt-hours, or nearly one million tonnes”. Kafi has announced that a pilot project is currently under consideration for the construction of a 50 MW industrial green hydrogen production facility in the Arzew region, in partnership with the hydrocarbons sector. Other projects are being considered, notably the testing of clean fuels and the establishment of facilities to produce kerosene from green hydrogen. Kafi also highlights the major strategic projects supported by the sector, citing, by way of example, the electrification of 103,000 farms as well as other projects in the mining and rail sectors, amongst others. On the domestic production front, the Secretary-General cites the sector’s efforts, which, he says, have comfortably met national energy demand in recent years. Electricity generation capacity is expected, he declares, to exceed 27,000 megawatts in the coming years.