Algeria has allocated $1.2 billion to reinforce its electricity infrastructure ahead of an anticipated surge in summer power demand. The initiative, led by Sonelgaz, the state-owned electricity and gas provider, aims to prevent outages during peak heat months.

The investment is part of a wider national effort to ensure grid stability amid rising temperatures forecasted for July and August 2025. Power consumption typically spikes during this period due to increased residential and industrial air conditioning usage.

Key elements of the upgrade include the addition of 1,100 megawatts (MW) of generation capacity, installation of six transformers, 35 high-voltage lines, and over 2,000 kilometers of new distribution networks. Mobile gas turbines have also been deployed in southern Algeria to address energy access in remote regions.

The strategy also incorporates wildfire prevention measures, which are critical given the region’s vulnerability to forest fires during summer.

While Algeria’s electricity access rate reached 98% by the end of 2023, challenges remain in isolated communities. This new infrastructure is expected to enhance supply reliability and support regional development.

This $1.2 billion summer plan is part of Sonelgaz’s broader 2025 investment strategy, valued at around $5 billion, which focuses on expanding production capacity and improving service quality nationwide.

Source: ecofinagency.com