Algeria's Sonelgaz to Launch 40 MW Power Plant Project in Chad
Image: Rass El Mal
Takeaway
The Sonelgaz project in Chad, along with the Niger project, signals a strategic push by Algeria to leverage its energy expertise and financial resources to expand its influence in the African energy sector. International investors should monitor Sonelgaz International's activities for potential opportunities to partner in future energy infrastructure projects across the continent. These projects could also create opportunities for companies specializing in power generation equipment and services.
Algeria is deepening its energy cooperation with Chad through a strategic project to construct a 40-megawatt power plant. A delegation from Algeria's state-owned energy group Sonelgaz visited N'Djamena from May 9 to 11, 2026, to prepare for the project launch. The delegation, led by Yazid Djellouli, CEO of Sonelgaz International, met with Chadian officials, including the head of Chad's national electricity company Tchad-Elec, Finance Minister Tahir Hamid Nguilin, and Water and Energy Minister Passalé Kanabé Marcelin. The discussions focused on technical assessments, a joint roadmap, bilateral working groups, and the regulatory framework.
This initiative builds upon Algeria's broader strategy to expand its energy footprint across Africa. In February 2025, Sonelgaz signed a memorandum of understanding with Niger's state electricity company Nigelec for a similar 40 MW power plant project in Niamey, presented as a gift from Algeria. Field studies for the Niger project commenced on February 27, 2025. These projects align with Algerian President Abdelmadjid Tebboune's vision of strengthening African cooperation and South-South partnerships. Algeria's electricity coverage rate exceeds 99%, and the group generated $303 million in export revenue in 2024, a 22% year-on-year increase.
Chad faces significant electricity shortages, with less than 12% of the population having access to power, according to 2024 World Bank data. The national grid is fragile, has limited coverage, and relies heavily on costly thermal generation. Chad's installed electricity generation capacity was only 48,000 kW as of 2016. The country's energy mix is dominated by biomass (76%) and oil (24%), with low per capita consumption. The government aims to achieve 30% renewable energy in its power mix by 2030.
The 40 MW power plant aims to improve Chad's electricity supply and strengthen its energy production capacities. Sonelgaz has committed to realizing the project to the highest technical standards and within the allotted deadlines. The project is viewed as strategic, with the Chadian Prime Minister praising Sonelgaz's expertise in electricity production, transmission, and distribution. In April 2026, Chad and Algeria also signed a framework agreement to study the construction of a 20,000 barrels-per-day refinery in Chad.
Looking ahead, the focus will be on establishing the joint roadmap and bilateral working groups to advance the power plant project. Technical and regulatory frameworks will be defined to ensure the project's success. The project aligns with Chad's goal to increase electricity access to 30% by 2023 and 53% by 2030, with a 20% rural access target by 2030. Sonelgaz created Sonelgaz International in March 2026 to identify investment opportunities across Africa and the Mediterranean basin.