Algeria issued a call for tenders in May 2019 for the construction of 150 MW solar power plants in Algeria. Initially, 93 projects were involved in the race, but in the end eight of them were selected during the pre-selection phase in June 2019. Subsequently, five projects reached the final phase and only one was able to win the power purchase contract. The winning project was developed by Power Generation, owned by the Algerian company Condor.
As a result of this project, electricity will be sold at 8.28 DZD/kWh, or $0.069/kWh. This price is higher than that charged following other tenders in North Africa due to high civil engineering and logistics costs in Algeria. The minimum period for a return on investment for the winning company is estimated at 15 years. The winning project will be developed on the basis of a 20-year power purchase contract.
According to the specificities of the tender, bidders had to rely on the local supply chain to acquire components such as assembly structures, cables, modules, etc. This strategy makes it possible to enhance and develop the local market, especially since the offer was exclusively reserved for local companies.
The Algerian Electricity and Gas Regulatory Commission (CREG), which coordinated the activity, initially wanted to select projects with a total capacity of 150 MW for four Algerian provinces: Ghardaïa, Biskra, Ouargla and El Oued. Algeria wanted to deploy 50 MW in Ghardaïa, 50 MW in Biskra, 30 MW in Ouargla. Two solar power plants of 10 MW each were to be installed in Tendala and Nakhla, in the El Oued region. However, several projects were disqualified due to technical deficiencies.
Algeria wants to produce 22 GW of green energy by 2030, with 13.6 GW earmarked for solar photovoltaic energy. The solar power installed in Algeria is currently 343 MW.
Luchelle Feukeng