The Ministry of Energy Transition and Renewable Energy in Algeria has launched a tender for the procurement of 1 000 MW of solar energy. State owned company, Algerian Renewable Energy Company (SHAEMS) will oversee the tendering process which is scheduled to close by 30 April 2022.
This is the first call for expressions of interest for development of large-scale solar power plants by independent power producers (IPP) from the North African country.
Interested developers and investors are required to submit proposals for solar energy plants with capacities ranging from 50MWp to 300MWp. Winning bidders will form special purpose vehicles (SPVs) for the development of the projects and will be granted 25-year concession agreements by the government.
State owned SHAEMS will be allowed to take equity shares of up to 25 per cent in the SPVs. The SPVs will also be responsible for financing, design and supply of equipment for the projects. Once completed, the projects will supply power via long term power purchase agreements (PPAs) to a designated purchaser of the renewable power produced by each plant.
Diversifying Algeria’s energy mix
Over 11 sites with a total area of 4,250 hectares of land have been availed for the development of the projects. Some of the project sites will be located in the Algerian region of El Bayadh, Ouargla, El Oued, El M’Ghair, Ghardaia, and Bechar.
The solar projects, after completion, will help Algeria achieve its ambitious target to install 16GW of renewable energy capacity by 2035. The North African country currently has 25 solar installations with a total capacity of 423MW, according to the International Renewable Energy Agency (Irena).
Algeria currently produces about 98% of its electricity from natural gas. The inclusion of renewable energy in the country’s energy mix will help the North African decarbonise its energy system, and help it reach its nationally determined contributions (NDCs) in alignment with the Paris Agreement.