The energy ministry of Algeria has announced its plans to invite tenders for the deployment of 1 GW of solar energy projects. The tender is expected to be launched by the end of October 2021. The tender is likely to conclude with prices ranging from DZD 5 per kWh to DZD 7 per kWh.
The awarded PPAs are required to have a duration between 20 and 25 years. The tender will be divided into 10 lots, which will range from 80 MW to 180 MW each. The Algerian Renewable Energy Company (SHAEMS), a joint venture of the state-owned gas company Sonatrach and power utility Sonelgaz, will take up to a share of 25 per cent in the special purpose vehicles which shall own the winning projects. Local content requirements have not been mandated in the tender, however, solar developers that use locally manufactured PV components may receive benefits in addition to the granted fixed tariff.
Algeria earlier launched tenders for off-grid, hybrid solar-diesel and PV projects in 2019. The country aims to deploy 22 GW of renewable energy capacity by 2030. Out of the 22 GW, 13.6 GW is to come from solar power. As per the International Renewable Energy Agency, Algeria had deployed roughly 423 MW of total installed solar capacity at the end of 2020. Additionally, three more tenders of similar capacity are expected to be held each year from 2022 to 2024.