Socio-Economic and Institutional Determinants of Renewable Energy Investment in Algeria: An Exploratory Analysis

Abstract

This article examines the paradox of Algeria’s energy trajectory: despite abundant solar potential and repeated policy announcements, renewable energy deployment remains marginal. The central research question is why Algeria continues to lag behind regional peers such as Egypt and Tunisia in advancing its energy transition. The study adopts a qualitative exploratory approach, drawing on secondary data from international institutions, national reports, and academic literature, complemented by descriptive and comparative analysis. Guided by theories of the resource curse, institutional economics, and socio-technical transitions, the analysis highlights how institutional fragility, hydrocarbon dependence, limited social legitimacy, and technological reliance interact to create a multidimensional lock-in. The findings suggest that Algeria’s underperformance is not a matter of resource availability but of governance and systemic barriers that reinforce rentier dynamics. The article contributes theoretically by extending the resource curse debate beyond economic factors to include institutional and social dimensions, and practically by offering policy recommendations to stabilize regulatory frameworks, build local capacities, diversify financing, and foster societal engagement.