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The Algerian energy company Sonelgaz has unveiled the winners of its 2 GW auction for the construction of 15 solar PV projects with capacities ranging from 80 MW to 220 MW, spread over twelve Wilayas in Algeria. Chinese companies dominated the auction, as they will develop nine of the projects (1,550 MW).
Five projects totalling 780 MW were awarded to a Chinese consortium regrouping China International Water & Electric Corporation (CWE) and China Nuclear Industry Huaxing Construction (HXCC). The consortium will develop a 220 MW solar plant at Batmet in the M''sila Wilaya, a 200 MW plant at Gueltet Sidi Saad in the Laghouat Wilaya, a 200 MW plant at Douar El Maa in the El Oued Wilaya, an 80 MW project at Abadla in the Bechar Wilaya and an 80 MW project in the Ouled Djelal Wilaya.
Other Chinese companies were also selected: Shanxi Installation Group will develop a 220 MW solar plant at Ouled Fadel in the Batna Wilaya, while CSCEC will develop a 200 MW plant at Tendla in the El M''ghaier Wilaya. PowerChina NTL-SinoHydro will build a 200 MW plant at Laghrous and PowerChina Zhongnan Engineering Corporation will build a 150 MW plant at Khanguet Sidi Nadji, both located in the Biskra Wilaya.
The rest of the projects have been awarded to Algerian companies, sometimes in partnership with foreign groups. Cosider Canalisation-Fimer SPA will develop two solar plants at Kenadsa in the Bechar Wilaya (120 MW) and in the Toggourt Wilaya (150 MW). Ozgun Insaat-Zergoun will develop an 80 MW plant at Guerrara in the Ghardaia Wilaya and Eurl Hamdi will build two 80 MW plants in the Bordj Bou Arréridj and El Oued Wilayas.
The totality of the projects will be developed for an amount of DZD171bn (US$1.2bn), in a completion timeframe ranging from 7 to 16 months. Algeria''s 2 GW solar auction was launched in February 2023 and Sonelgaz shortlisted 77 offers in July 2023. In 2022, solar accounted for around 1.4% of Algeria''s installed capacity (with 460 MW) and less than 1% of its power mix (with 642 GWh).
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Article by Rym Loucif, Partner at Loucif + Co, Algeria
One month after the Council of Ministers'' meeting of 21 November 2021 where the President of the Republic gave clear instructions to his Government to accelerate the energy transition, the Ministry of Energy Transition and Renewable Energy launched on 23 December 2021 a solar tender No. 01/MTEER/2021 covering 1,000 MW.
Solar 1,000 MW is the first call for tenders for the realisation of solar photovoltaic power plants with a total capacity of 1,000 MW, marking the beginning of Algeria''s energy transition.
Several recent decisions have been taken to prepare the launch of the tender:
– On 22 November 2021, Smail Mougari has been appointed as the general manager of the Algerian Renewable Energy Company (SHAEMS), a joint venture between state-owned Sonatrach and Sonelgaz to participate and facilitate the renewable energy projects.
– On 23 November 2021, 11 sites with a total capacity of 4,250 hectares were selected in the wilayas of El-Bayadh, Ouargla, El Oued, El M''Ghair, Ghardaïa and Béchar. These sites will be made available by SHAEMS.
The full text of the call for tenders in French, English and Arabic can be found here
LEGAL FRAMEWORK FOR TENDERING
The call for tenders is launched pursuant to Decree No. 17-98 of 26 February 2017 defining the tender procedure for the production of renewable energy.
Such Decree was recently amended by Decree No. 21-158 of 24 April 2021, which transferred to the Minister of Energy Transition and Renewable Energies the prerogatives previously vested in the Ministry of Energy regarding the launch and processing of the call for tenders for the construction of electricity production facilities from renewable energy sources.
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