Algeria Launches Tender for 1 GW Solar PV Plants

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The Algerian Ministry of Energy Transition and Renewable Energies has launched a call for tenders for the deployment of 1 GWp combined capacity of solar projects in several locations in the country.

In November last year, the Ministry of Energy Transition and Renewable Energies had identified 11 sites with a combined total area of 4,250 hectares for the 1 GW solar program. The sites include locations in Algeria’s Bechar, El-Oued, El-M’Ghair, El-Bayadh, Ghardaia, and Ouargla provinces.

The first call for expressions of interest for this large-scale solar energy project in Algeria concerns independent power producers. These private investors are called to build solar PV plants with capacities ranging from 50 to 300 MWp. 

The developers can submit technical and financial offers by April 30, 2022. The competitive selection is being held by Algerian Renewable Energy Company (SHAEMS), jointly owned by the gas group Sonatrach and power utility Sonelgaz groups. SHAEMS is given the charge of carrying out the national program for the development of renewable energy. 

The selected IPPs will have to set up a special-purpose company that will be responsible for the development of the project, including funding, design, and supply of equipment. The project company will also be required to construct, operate, and maintain the solar PV plants, as well as put up the evacuation facilities and the connection of the park to the national electricity grid.

The future solar PV power plants will be operated for a period of 25 years, under power purchase agreements between the IPPs and the designated buyer. Another three tenders of the same size are expected to be issued within 2024. 

The implementation of the “Solar 1000 MWp” set forth the Algerian government’s desire to gradually move away from natural gas, which produces 98% of its total electricity, towards cleaner energy. 

Algeria plans to produce 22 GW of green energy by 2030, as part of its energy strategy, with 13.6 GW to be produced from solar energy. The country currently has 25 solar installations with a total capacity of 423 MW, according to the International Renewable Energy Agency (IRENA).

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