Sonelgaz is on the verge of finalizing contracts with 19 national and international firms to commence the construction of twenty photovoltaic solar power plants. This development marks a significant stride in Algeria’s ambitious renewable energy agenda, particularly within the scope of the 1000-megawatt and 2000-megawatt projects, with the ultimate goal of generating 15,000 megawatts of solar electricity. This initiative is anticipated to result in substantial savings of natural gas, amounting to several billion cubic meters annually.
Professor Boukhalfa Yaïci, Director-General of Algeria’s Green Energy Cluster, announced on national radio yesterday Sonelgaz’s intention to sign multiple contracts with national and predominantly Chinese companies today for the establishment of 20 photovoltaic solar power plants. These projects, aligned with the 2000-megawatt and 1000-megawatt initiatives, will involve Algerian firms overseeing 42% of the project executions.
The 2000-megawatt initiative involves building 15 photovoltaic solar power plants spread across 12 provinces, with each plant having a capacity ranging from 80 to 220 megawatts. Similarly, the Solar 1000 project includes the installation of five plants across five provinces, each with capacities ranging from 50 to 300 megawatts. These endeavors form integral parts of the overarching 15,000-megawatt program, with plans for similar projects in the country in the near future.
In terms of the project schedule, Yaïci projected a timeframe of 22 months for the completion of both initiatives, with certain plants anticipated to commence operations gradually within the current year.
These projects also hold potential for exports, with ongoing discussions between the European Union and Algeria. Yaïci emphasized Sonelgaz’s pivotal role in the nation’s energy transition strategy, aiming to progressively incorporate renewable energies, particularly solar power, into the national electricity mix.
In terms of financing, Yaïci clarified that Algeria would entirely fund the projects but highlighted the potential for additional financing sources such as public-private partnerships and foreign direct investment. He also noted that the projects would surpass the initially set 35% integration rate, resulting in significant natural gas savings and potentially saving six to eight billion cubic meters annually upon completion of the 15,000-megawatt solar project.
Addressing inquiries about global progress in photovoltaic technology accessibility and affordability, Yaïci acknowledged Algeria’s lag in solar energy development compared to global trends. Yet, he voiced hope that current endeavors would facilitate the development of a specialized domestic solar sector, in line with international progress in deploying renewable energy.
Algeria’s concerted efforts in expanding solar energy underscore its commitment to sustainable development and position the country as a prominent player in the global renewable energy arena.
