Algerian state shows blueprint for charging stations

From the newsletter 

Sonelgaz, the Algerian state-owned electricity and gas distribution company, has completed the installation of 31 EV charging stations in 23 locations. The stations were installed at diverse locations such as office buildings, public hospitals (seven of them), universities, fuel service stations and municipal parking lots. Sonelgaz also exports charging stations.

• Sonelgaz plans to install 1,000 public charging stations in Algeria. The diversity of the high-traffic locations where the company is building charging points targets maximum exposure to potential users.

• The firm’s industrial arm, SAIEG, started making charging stations locally as well as exporting them. Vertical integration gives Sonelgaz an advantage in cross-border competition.

More details

• Sonelgaz’s recent investments in EV charging infrastructure is part of the Algerian government’s state-led approach towards boosting the adoption of EVs in the country. Algeria has more than 6.5 million vehicles on its roads but has only hundreds of EVs, mainly in major cities such as Algiers, Oran, Constantine, and Annaba.

• Chinese brand Dongfeng is one of the few manufacturers actively selling EVs in the country, which has a population of 46 million. Currently, LPG-powered vehicles are the preferred alternative for Algerians switching from fuel vehicles to reduce their operational costs. Algeria's national fleet of vehicles running on LPG surpassed one million by the end of 2023, one of the highest fleets in Africa.  

• Algeria has some of the cheapest fuel and LPG prices in Africa, which makes the transition to EVs less appealing for many Algerians especially as EV prices remain high while there are inadequate charging stations in the country. However, this is changing as companies like Sonelgaz, in addition to a number of private firms, invest in charging networks. 

• Through the utility’s subsidiary SAIEG, Algeria is one of the few countries in Africa that make EV charging stations. In September 2024, SAIEG exported 433 EV charging stations to Italy and Libya. The shipment included 60 kW AC chargers and 322 kW DC fast chargers. The company plans to expand its production capacity and is negotiating with European and Middle Eastern countries for further exports.

• Sonelgaz’s model is strategic as charging stations are being placed not just at commercial spots, but at hospitals, universities, government offices, fuel stations, and public parking. This broadens access to EV charging and supports both public fleets and private users. Further, as the national electricity provider, Sonelgaz directly manages grid capacity, site selection, and infrastructure integration.

• Across Africa, a growing number of national utilities like Eskom (South Africa) and Kenya Power (Kenya) are also rolling out EV charging stations both for their internal use as well as for public use. For these utilities, EV charging has the potential to increase their annual revenues especially at a time when thousands of customers are abandoning the grid in favour of solar PV. 

Our take

• Algeria should complement its charging infrastructure push by incentivizing low-cost EV imports such as tax exemptions, import duty relief and local EV assembly to grow demand and justify infrastructure investment. 

• With local manufacturing and early export success, Algeria should position SAIEG as a pan-African EV charger supplier, targeting regional utility partnerships, especially in Francophone and North African markets with underdeveloped infrastructure. 

• Sonelgaz should introduce EV-friendly electricity tariffs and invest in smart charging systems that encourage off-peak use—this ensures grid stability and builds a sustainable business case for utilities investing in EV infrastructure.