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Sunrise Strategy
Sunrise Strategy: How Algeria’s Tafouk 1 Project Is Redefining Energy in North Africa
May 28, 2025
The Tafouk 1 Mega Solar Project marks a transformative chapter in Algeria’s energy history. With a 4 GW capacity and a $3.6 billion investment, it is set to become one of the continent’s flagship renewable energy projects—accelerating Algeria’s transition to a low-carbon economy and solidifying its position as a regional energy powerhouse.
Capacity: 4 GW (4,000 MW)
Estimated Investment: $3.6 billion
Introduction
Algeria is making a bold statement in the global renewable energy arena with the Tafouk 1 Mega Solar Project, a landmark initiative that underscores the country's commitment to a sustainable energy future. With a planned capacity of 4 GW (4,000 MW), Tafouk 1 is not only one of the largest solar energy projects in North Africa but also a pivotal development in the Middle East and Africa (MEA) region’s transition towards clean energy.
Project Overview
The Tafouk 1 project represents a major milestone in Algeria’s National Renewable Energy Program (PNER). With a $3.6 billion investment, the project will consist of multiple solar photovoltaic (PV) plants distributed across various regions of Algeria, chosen strategically for their high solar irradiation potential and grid accessibility.
Construction is expected to span several phases, with full commissioning projected by 2027. Once operational, Tafouk 1 is expected to generate enough electricity to power over 5 million homes and prevent millions of tons of CO₂ emissions annually.
Strategic Objectives
This project plays a central role in helping Algeria reach its short-term target of 2.9 GW of installed renewable energy capacity by 2025, while laying the groundwork for long-term ambitions of reaching 22 GW by 2030.
Tafouk 1 is aligned with several strategic national objectives:
Diversifying Algeria's energy mix, which is currently dominated by hydrocarbons.
Boosting domestic energy security by reducing dependence on natural gas for power generation.
Freeing up natural gas for export by replacing gas-fired electricity generation with solar power.
Creating green jobs and stimulating local industries through domestic manufacturing and construction contracts.
Location and Infrastructure
The project will span several high-potential regions, including:
Adrar
Laghouat
Ghardaïa
Ouargla
El Oued
These areas offer favorable solar conditions, with over 3,000 hours of sunshine per year, making them ideal for large-scale solar installations. Algeria's government has prioritized these areas to become renewable energy hubs under the national energy transition roadmap.
Infrastructure developments accompanying the project will include:
New transmission lines to connect solar plants to the national grid.
Energy storage solutions in later phases to enhance grid stability.
Water-efficient PV cleaning systems to address desert dust and efficiency loss.
International Collaboration and Financing
The financing for the Tafouk 1 project is expected to come from a combination of:
State funds
International financial institutions
Public-private partnerships (PPPs)
Several foreign and domestic companies are bidding for engineering, procurement, and construction (EPC) contracts. The project is also attracting interest from Chinese, European, and Gulf-based renewable energy firms that see Algeria as a gateway to the African energy market.
Impact and Legacy
The Tafouk 1 Mega Solar Project will redefine Algeria’s role in the global energy transition. By embracing solar energy on a massive scale, the country is:
Enhancing its climate resilience
Reducing reliance on fossil fuels
Positioning itself as a leader in African clean energy development
It will also help Algeria comply with its international climate commitments under the Paris Agreement and pave the way for potential green hydrogen production using solar power as a feedstock in the coming decade.
