Algeria plans to privatize electricity

The government plans to privatize electricity production and open distribution and marketing fields. This comes as Algeria’s electricity exclusive distributor Sonelgaz suffers from a financial deficit of more than 1,300 billion DZ.

Sonatrach’s former CEO and head of gas production association Abdelmadjid Attar believes that electricity producers in Algeria are still few. The government announced advantages for producers through profitable contract of 20 years at least. 

He said Sonelgaz’s financial deficit can be solved by reorganizing the sector. “Electricity prices should be liberated. Foreign producers such as Canadian SNS Lavalin produces electricity at high costs and sells it at 15 percent. Because of that, Sonelgaz has to buy it at a double price and sell it to people at 50 percent of the price.

Attar also said solar energy plants in the south should be transferred to high lands to reduce costs.