Algeria has started construction of a major new power plant that is expected to strengthen its electricity supply and support future exports in North Africa. The project, launched on Monday in the eastern province of Tébessa, will have a capacity of 1,406 megawatts, making it the second-largest power station in the country once completed.
The groundbreaking ceremony was led by Energy and Renewable Energies Minister Mourad Adjal at the Argoub El Asfar site in El Aouinet. The plant is being developed by Sonelgaz in partnership with the China National Electric Engineering Company, in a deal worth about $1.38 billion.
Officials say the project is part of Algeria’s wider plan to expand and modernise its power infrastructure over the next four years. The country is already one of the leading energy producers in the region, and this new plant is expected to further strengthen its position.
Unlike older power stations, the new facility will use combined-cycle gas turbine technology. This system allows the plant to generate more electricity from the same amount of fuel by capturing and reusing heat that would otherwise be wasted. As a result, the plant is expected to reduce fuel consumption by about 30 percent while also lowering emissions per unit of electricity produced.
Authorities say the project will play an important role in meeting growing domestic demand for electricity, especially as industries expand and populations grow. The Tébessa region already has high access to electricity, but the new plant will improve supply reliability and support future growth.
The location of the plant is also seen as strategic. Tébessa lies close to the border with Tunisia, and officials say the facility could support electricity exports to neighbouring countries in the future. This would not only strengthen regional energy cooperation but also create new revenue streams for Algeria.
The construction phase is expected to take about 48 months, with the plant likely to start operations around 2030. During this period, the project is expected to create around 1,500 jobs, providing a boost to the local economy. Once completed, the plant will employ about 500 people on a permanent basis.
The project is also expected to support skills development and technology transfer, particularly in advanced power generation systems. This could help build local expertise and support Algeria’s long-term energy ambitions.
