111 investors from 15 countries have indicated interest to participate in a tender for the “Solar 1000MW” project in Algeria, according to Mahama Bouziane, the Secretary-General of Algeria’s Ministry of Energy Transition and Renewable Energy. Bouziane explained that the number is even expected to rise since the bidding deadline has been extended by a number of days.
Tenders for the 1 GWp solar PV plant in Algeria were launched by the North African country in December last year, with the purpose of providing capacity on plots ranging from 50 MW to 300 MW. Solar power plants will be constructed at 11 different sites and the developers are allowed to bid on one or more lots totalling 300 MW. A 25-year power purchase agreement (PPA) will be awarded to the winner.
The procurement campaign will contain local content requirements, but they will not be essential for the first contract in the series since the local industry will only have 1 GW of capacity by the end of the year.
On top of the fixed tariffs, the use of locally made solar photovoltaic modules may get extra incentives.
Tender for Implementation of “Solar 1000MW” Project in Algeria
The Ministry of Energy Transition and Renewable Energies has launched a call for tenders, inviting independent power producers (IPPs) for the implementation of the “Solar 1000MW” Project in Algeria. Interested parties have until April 30th, 2022 to submit their bids.
The selected candidates will be required to form Project Companies (SPV) that will be responsible for the financing, design, supply of equipment, construction, operation, and maintenance of the solar power plants.
With a total capacity of 1000 MWp, the power plants will be constructed in batches of 50 to 300 MWp on a total area of 4,250 hectares piece of land distributed over 11 sites on the Algerian national territory. Some of the project sites will be located in El Bayadh, Ouargla, El Oued, El M’Ghair, Ghardaia, and Bechar.
In addition to the construction of the power plants, the SPVs will also be responsible for the installation of evacuation facilities and the connection of the power plants to the North African country’s national electricity grid.
Electricity generated by the “Solar 1000MW” Project in Algeria is set to be sold to a “designated buyer” under a 25 years power purchase agreement (PPA). The Algerian Renewable Energy Company (SHAEMS, Spa) is expected to evaluate various technical and financial offers after the submission of the tenders before formulating the power purchase tariffs.
The impetus of the “Solar 1000MW” Project in Algeria
The implementation of the “Solar 1000MW” Project in Algeria comes from the North African country government’s desire to move bit by bit away from natural gas, from which nearly 98% of its electricity is produced.
As part of its strategy, the country, therefore, plans to produce 22 GW of green energy by 2030, with 13.6 GW reserved for solar photovoltaics.