Algeria’s hopes of diversifying its powergen capacity through a renewables push are unlikely to bear fruit any time soon. Its reliance on gas-fired power plants is here to stay, placing a continued strain on the country’s key export revenue stream.

The sun has yet to shine on Algeria’s renewables dreams. It set a 22GW 2030 renewables target in 2011 but has little to show for it. For a country with abundant sun but reliant on stretched natural gas resources for power, this...