Algeria and Chad Enhance Energy Cooperation; Sonelgaz to Build 40 MW Power Plant
Image: AL24 News
Takeaway
The Algeria-Chad energy cooperation, spearheaded by Sonelgaz's 40 MW power plant project, signals a strategic push by Algeria to expand its influence in the African energy market. International investors should monitor Sonelgaz's project pipeline and consider opportunities in power infrastructure development and related services, particularly in countries with growing energy demand and supportive government policies.
Algerian Minister of Energy and Renewable Energies, Mourad Adjal, met with Chad's Minister of Water and Energy, Bassali Kanabi Marcelin, on Thursday, May 9, 2026, in Algiers to strengthen bilateral cooperation in energy and renewable energy sectors. The Chadian delegation included officials from the energy sector and representatives from the Chadian electricity company, Tchad Elec. The visit aimed to leverage Algerian expertise in operating power plants, particularly in anticipation of Sonelgaz's construction of a 40 MW power plant in Chad. Sonelgaz International CEO, Yazid Djellouli, confirmed the launch of the power plant project, which will utilize a dual-turbine system, with each turbine producing 20 MW.
Algeria has been strategically expanding its energy footprint in Africa. In 2024, Sonelgaz initiated a similar 40 MW power plant project in Niger, demonstrating Algeria's commitment to leveraging its energy expertise and financial resources across the continent. These projects align with Algeria's broader efforts to foster intra-African trade and investment, as evidenced by the Trans-Saharan Highway project, which aims to improve connectivity and facilitate trade between Algeria, Chad, and other African nations. The renewed focus on these infrastructure projects has created opportunities for construction firms and maritime service providers.
The 40 MW power plant in Chad will employ a dual-turbine system, enhancing efficiency and reliability. This project mirrors Algeria's domestic efforts to upgrade its power infrastructure, including investments in combined cycle gas turbine (CCGT) plants and renewable energy projects. Algeria's total installed electricity generation capacity reached approximately 25 GW in 2025, with a growing emphasis on integrating renewable energy sources such as solar and wind power to diversify its energy mix and reduce reliance on fossil fuels.
The Algeria-Chad energy partnership benefits several stakeholders. Chad gains access to reliable electricity, supporting its economic development and improving the quality of life for its citizens. Sonelgaz expands its presence in the African energy market, enhancing its reputation and potentially securing future projects. International service companies specializing in power plant construction and operation may also find opportunities in this collaboration. The project could also reduce Chad's dependence on imported energy, strengthening its energy security.
Looking ahead, the successful implementation of the 40 MW power plant project in Chad could pave the way for further energy collaborations between Algeria and other African nations. The African Energy Bank, nearing launch with $5 billion initial capital, could play a crucial role in financing such projects, mitigating the impact of reduced international financing. The Algeria Bid Round 2026, which opened data room access on June 1st, will also be a key indicator of international energy companies' interest in Algeria's energy sector.