ABSTRACT
Since the 1970s, Algeria’s heavy reliance on hydrocarbons has shaped its political, economic, and social landscape more than any other sector. This model based on the oil rent is increasingly at risk with the rapidly rising domestic demand and the oil and gas reserves’ decline. This chapter looks at the current energy dilemma that Algeria is facing and the coping strategies, including the case for speeding up renewable energy deployment on a large-scale, the controversy on shale gas production, and demand mitigation through economic measures, consumer policies, and tariffs. However, a potential energy transition in Algeria will not be sustainable without an economic transition.
