Algeria has once again pushed the tender submission deadline for the 1.2GW gas-fired power plant in Adrar. The bid submissions are being managed by Algeria’s state-owned electricity and gas utility Sonelgaz. However, the project is being procured through Sonelgaz’s power generation subsidiary. This is the Societe Algerienne de l’Electricite et du Gaz – Production de l’Electricite (SPE). The main contract was first tendered in April last year.

Ever since, the deadline has been extended several times with the latest one being on 26 February. The tender is open to local and international companies with experience in delivering large-scale power generation projects. Moreover, those with sufficient technical and financial capabilities can also bid.

Algeria’s wider power sector has experienced periods of limited contract activity in recent years. MEED reported that between 2018 and 2022, virtually no new solar or wind farm contracts were awarded.

Scope on the 1.2GW Gas-fired Power Plant in Adrar

The 1.2GW gas-fired power plant in Adrar is just one of the many such power projects that Algeria has in its energy pipeline. Gas-fired combined-cycle plants continue to account for the majority of Algeria’s electricity generation capacity.

Data from MEED Projects indicates that more than 5,000MW of oil- and gas-fired power capacity is currently under construction. Despite this, new contract awards in 2025 came from three solar schemes. This included the construction of a 154MW solar PV plant in Bechar, for which China Power was appointed main contractor in August. The inconsistency in the tendering process of energy projects in Algeria may be alluded to management and financial reasons.

Nonetheless, Algeria and other North African countries are turning to more amicable sources such as solar. Earlier this week, Egypt announced the operation of the first phase of Africa’s largest battery and solar project, Obelisk. Algeria has also tendered solar projects over the years. Sonelgaz Energie Renouvelables, a subsidiary of Algeria’s state-owned utility, awarded 14 of the 15 solar photovoltaic (PV) packages in 2023.

Project Factsheet

Name

• 2GW Gas-Fired Power Plant in Adrar.

Type

• Power generation by combined-cycle gas-fired power generation plant.

Location

• Adrar Province, Algeria

Capacity

• 1,200 MW (1.2 GW)

Procurement and Tendering

• Tendering authority: Sonelgaz.
• Procurement made by: SPE (Societe Algerienne de l’Electricite et du Gaz – Production de l’Electricite)
• First issuance of tender: April (last year)
• The latest bid submission deadline extended: 26 February
• The qualifying bidders Local and international EPC and power plant developers with technical and financial capability or large-scale power generation projects expertise

Development Scope

• A 1.2GW gas-fired combined-cycle power plant was built in Adrar.
• Connection to Algerian national electricity grid.
• To improve baseload power supply reliability and facilitate the industrial and residential demand growth.

Project Status

• Tender deadline extended several times.
• International and domestic contractors welcome.
• Award of final contract awaiting the assessment of bids submitted.

Project Partners and Roles

• Sonelgaz – Owner of the project and tender authority.
• SPE (Societe Algerain de l’Electricite et du Gaz -Production de l’Electricite) – power generation subsidiary of Sonelgaz that serves as the procuring entity dealing with the tender.