Algeria Releases Solar Tender to Deploy 1 GW Capacity

The Ministry of Energy Transition and Renewable Energy of Algeria has launched a tender for the deployment of 1 GW of solar capacity. The procurement exercise will be divided into lots ranging from 50 MW to 300 MW each.

The developers can submit technical and financial offers by April 30, 2022.

Algerian Renewable Energy Company (SHAEMS), which is jointly owned by state-owned gas company Sonatrach and power utility Sonelgaz, will hold the tender. SHAEMS will be authorised to own up to 25 per cent of the special purpose vehicles that will own the winning projects.

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.

As per the tender guidelines, the winning developer will be awarded a 25-year power purchase agreement and each developer will be allowed to tender for one or more lots for a maximum cumulative capacity of 300 MW. Between 2022 and 2024, three further tenders of the same size are expected to be held each year.

Algeria, located in the north of Africa, aims to reach 15,000 megawatts (MW) of electricity generation capacity based on renewable resources by 2035, with a growth rate of 1000 MW/year. The goal is to attract independent power producers (IPPs) to develop renewable energy resources, the most abundant of which is solar.

Algerian utility Sonelgaz announced a 500 MW solar tender at the beginning of December 2021. In 2019, the Algerian government-held tenders for off-grid, hybrid solar-diesel, and PV projects. The procurement rounds were part of the country’s goal of deploying 15 GW of solar capacity by 2030. According to the International Renewable Energy Agency, Algeria has approximately 423 MW of installed solar power capacity.