مجلة الاقتصاد وادارة الاعمال
Volume 10, Numéro 1, Pages 118-134
2026-06-10
Algeria's Energy Transition: Exploiting Renewable Potentials And Pathways Toward 2035
Authors : Argillos Amal .
Abstract
This study analyses Algeria’s energy transition and its role in advancing renewable energy development toward the 2035 targets. Combining a descriptive policy review with an econometric analysis based on the STIRPAT model, it examines the determinants of renewable electricity production over 1990–2023 using the Autoregressive Distributed Lag (ARDL) model approach. Results indicate that rising energy demand is the main long-run driver of renewable deployment, while hydrocarbon revenues exert a crowding-out effect and carbon emissions reinforce fossil fuel dependence. Short-run effects show that oil rents support temporary investment but do not sustain long-term transition. Projections to 2035 reveal a stagnating trajectory under current policies, insufficient to meet national targets. The study concludes that accelerating Algeria’s transition requires structural reforms, reduced reliance on hydrocarbon revenues, and stronger investment frameworks to unlock renewable potential.
Keywords
renewable energy ; energy transition ; Algeria, solar energy ; energy policy ; 2035 targets
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