Algeria to launch 4 GW solar tender soon

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Algeria to launch 4 GW solar tender soon

Company of Electricity and Gas Engineering announced that, in late March, Algerian Energy Ministry plans to launch a tender process for the mega solar photovoltaic project of 4.025 GW.

The project will be divided into three sections of 1.35 GW each and will select projects with an average capacity of 100 MW. The project also includes two segments: one concerning energy and the other one industry. The tender will enable the construction of several large-scale PV plants in the region of Hautes Plaines, which is located in the northern part of the country, and also in southern Algeria.

The solar plants will be located in different provinces like Bechar, El Oued, Ouargla, Biskra, Djelfa and M’sila. Through this huge project, the GEEC is aiming the establishment of an industrial basis in the photovoltaic field while drastically reducing gas consumption. Besides, solar plants will be functioning alternating with gas plants during daytime, resulting in significant energy savings. Finally, the call for bids, provides for the creation of several financing companies or special purpose companies, the EPC, the commissioning of solar power plants and the marketing of the produced electricity.

Mohamed Arkab, CEEG's CEO, said:

"At Sonelgaz, we are working to reduce gas consumption, by encouraging the combined cycle plants."

The share capital of each vehicle will be allocated in accordance with the rule governing foreign investment which grants a 51% stake to the Algerian national investor and 49% to the foreign partner.

Sonatrach will acquire a 40% stake in each firm, while Sonelgaz and national public and private companies will take 11% of the shares. The maximum rate of participation in the capital of the project firms is limited to 6% for the Algerian private companies. Financing for each project must be provided 30% with own funds and 70% with bank loans.

The distribution of capital in industrial joint ventures in charge of manufacturing equipment for solar power plants will also be carried out in accordance with the rules governing foreign investment. The Ministry of Energy will soon designate the local private and public companies that will have to cooperate with Sonelgaz and Algerian electronic components producer Entreprise Nationale des Industries Electroniques (ENIE) for the projects.

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