The Algerian government is launching a tender for the construction of several solar photovoltaic plants with a combined capacity of 1,000 MWp. Interested independent power producers (IPPs) have until April 30th, 2022 to submit their bids.
Algeria’s solar energy ambitions are becoming clearer. The Algerian Ministry of Energy Transition and Renewable Energies is launching a call for tenders for the implementation of a solar project in several locations in this North African country, called “Solar 1000 MW”. The call for expressions of interest, a first for large-scale solar energy production in Algeria, concerns independent power producers (IPPs).
These private investors are thus called to build solar photovoltaic power plants with capacities ranging from 50 to 300 MWp. Each IPP selected at the end of this selection process will have to set up a company with a specific purpose. Subsequently, this special purpose company will be responsible for the development of the project, including financing, design and supply of equipment. The project company will also be responsible for the construction, operation and maintenance of the solar photovoltaic power plant, as well as the installation of the evacuation facilities and the connection of the park to the Algerian national electricity grid.
25-year power purchase agreements
The future solar photovoltaic power plants will be operated for a period of 25 years, under power purchase agreements (PPAs) between the IPPs and a “designated buyer”. IPPs have until April 30th, 2022 to apply. The Algerian Renewable Energy Company (SHAEMS, Spa) will then evaluate the various technical and financial offers before formulating power purchase tariffs.
The implementation of the “Solar 1000 MWp” project stems from the Algerian government’s desire to gradually move away from natural gas, from which nearly 98% of its electricity is produced. As part of its energy strategy, the country plans to produce 22 GW of green energy by 2030, with 13.6 GW reserved for solar photovoltaic. However, Algeria is still far from achieving this goal, with an estimated installed solar capacity of 390 MWp, according to the Commissariat for Renewable Energy and Energy Efficiency (CEREFE) of this Maghreb country.