Algeria set to launch 4GW solar tender

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The Algerian government is set to launch a solar tender for the construction of extensive solar photovoltaic (PV) projects totaling 4 gigawatts (GW).

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The tender is part of the government’s renewable energy strategy declared in 2015, and will be done in three 1,350 MW stages.

The projects allotted through the tenders will be situated in Hautes Plaines in northern Algeria and also in the south of the republic.

The government will set up special purpose vehicles to execute the large-scale renewable energy projects.

Algerian companies and government institutions will own a 51 per cent stake in these special purpose vehicles, with the residual 49 per cent being held by financiers.

Of the 51 per cent, 40 per cent shall be held by Algerian government-owned oil company Sonatrach whilst 11 per cent will be controlled by state-run utility Sonelgaz as well as other public or private Algerian companies.

Each of the projects will be financed through 30 per cent equity and 70 per cent debt funding.
Algeria has devoted to put in 13,500 MW of solar PV capacity by the year 2030.

In addition, the northern African country plans to install 2 GW of wind energy and 2 GW of concentrated solar power capacity by the year 2030.

The Algerian renewable energy sector is giving diversified responses to the 4 GW solar tender just announced by the government. Some operators fear that local enterprises will be left out from future projects, while others claim that the new auction scheme will resolve most of the issues created by the unapplied FIT scheme.

Some criticized the vast size of the three 1.35 GW phases of the tender. Their size, the critics claimed, could lead to having a sole winner with a project covering all the allotted capacity in every phase, consequently abolishing every single chance of broadening the market.

The Algerian government is set to launch a tender for the construction of extensive solar photovoltaic (PV) projects totaling 4 gigawatts (GW).

The tender is part of the government’s renewable energy strategy declared in 2015, and will be done in three 1,350 MW stages.

The projects allotted through the tenders will be situated in Hautes Plaines in northern Algeria and also in the south of the republic.

The government will set up special purpose vehicles to execute the large-scale renewable energy projects.

Algerian companies and government institutions will own a 51 per cent stake in these special purpose vehicles, with the residual 49 per cent being held by financiers.

Of the 51 per cent, 40 per cent shall be held by Algerian government-owned oil company Sonatrach whilst 11 per cent will be controlled by state-run utility Sonelgaz as well as other public or private Algerian companies.

Each of the projects will be financed through 30 per cent equity and 70 per cent debt funding.
Algeria has devoted to put in 13,500 MW of solar PV capacity by the year 2030.

In addition, the northern African country plans to install 2 GW of wind energy and 2 GW of concentrated solar power capacity by the year 2030.

The Algerian renewable energy sector is giving diversified responses to the 4 GW solar tender just announced by the government. Some operators fear that local enterprises will be left out from future projects, while others claim that the new auction scheme will resolve most of the issues created by the unapplied FIT scheme.

Some criticized the vast size of the three 1.35 GW phases of the tender. Their size, the critics claimed, could lead to having a sole winner with a project covering all the allotted capacity in every phase, consequently abolishing every single chance of broadening the market.