Algeria expands charging network with 7 new stations

From the newsletter

Algerian State-owned electricity & gas company Sonelgaz has installed 7 electric vehicle charging stations in the Touggourt province. The company is leading Algeria’s efforts to expand charging networks to other cities beyond the capital Algiers. SAIEG, a Sonelgaz subsidiary, makes the stations, which it also exports.  

• The installation of the new charging stations highlights growing demand for EVs in Algeria, one of only four countries in Africa (alongside Egypt, Morocco and Tunisia) to have 100% electricity access rate.

• Sonelgaz makes and installs charging stations for public use in various cities. Its high manufacturing capacity means that it does not only meet local needs but can also serve the export market in Africa and beyond.

More details

• Algeria, which has a population of 46 million people, has more than 6.5 million motor vehicles on its roads. But the country is estimated to have only hundreds of EVs, mainly in major cities such as Algiers, Oran, Constantine, and Annaba.

• Its EV market is dominated by both local and international players such as Renault Algeria and Peugeot Algeria which are leading the charge with their electric models. Foreign companies such as Hyundai and Volkswagen have also entered the market, bringing their expertise and advanced EV technologies.

• At the same time, in contrast with most African countries where private firms are leading the charge to install charging stations, the Algerian government is leading this effort in the country.

• Through Sonelgaz, the government is targeting to install charging stations along major highways at key spots such as fuel service stations, public facilities and private institutions. It is only one of the few African countries that make the charging stations.  

• South Africa also does, but it imports most of the components before they are assembled locally.  

• In September 2024, SAIEG exported 433 EV charging stations to Italy and Libya. The shipment included 60 kW AC chargers and 322 kW DC fast chargers. The company plans to expand its production capacity and is negotiating with European and Middle Eastern countries for further exports.

• Logistically, Algeria’s proximity to Europe makes it easy to import EV charging components from Europe, assemble the stations and export complete stations to other countries.

• Algeria, with its abundant oil and gas resources, also has one of the cheapest electricity and gas prices on the continent. This makes the cost of production there cheap. It means that the country can make EV components much more cheaply for export on the continent.

• The North African country also has vast potential for renewable energy, particularly solar. If this resource is well utilized, it can reduce electricity prices further, making Algeria even more attractive for production of EV components and products. 

Our take

• The Algerian government has implemented various measures to promote EV adoption, including tax exemptions on EV imports, subsidies for replacing old vehicles, and the construction of a network of charging stations. Thes incentives should be sustained for faster EV adoption.

• Algeria’s universal electricity access rate should make home charging easier. EV owners can charge their vehicles at home, lessening the need for a public charging station. This should encourage adoption of EVs in the longer-term.

• African utilities should emulate Sonelgaz by using the significant capital bases to invest in e-mobility. Utilities such as Kenya Power (Kenya) and Eskom (South Africa) have made some progress installing charging stations. Such investments will fasten the adoption of EVs.