Bid Submission for Algeria’s 1GW ‘Solar 1,000’ Project Pending
Solar plant expected to produce its first electricity by 2023.
The call for tenders for Algeria’s 1-gigawatt solar plant opened in December 2021, and the deadline for submitting proposals was initially set at 30 April 2022. Local and international investors twice requested a deadline extension because they needed time to analyse the project’s financial and technical aspects.
At the end of April 2022, the initial tender submission deadline was extended by 45 days from 30 April 2022 to 15 June 2022. The June deadline was once again extended following a request by local and international investors. The new submission deadline has not yet been announced.
The ‘Solar 1,000’ Project is part of Algeria’s energy transition strategy. The project will involve establishing special purpose vehicles (SPVs), whose main aim will be to operate the solar photovoltaic power plants. These plants will each have a capacity of between 50 to 300 megawatts spread in several sites across the country up to a total capacity of 1,000 megawatts.
Société Algérienne des Energies Renouvelables (SHAEMS) will oversee the allocation of the relevant plots to the SPVs. SHAEMS is a joint venture between Sonelgaz, the state-owned utility in charge of electricity and natural gas distribution in Algeria, and Sonatrach, the National Oil Company.
The SPVs will oversee the development, financing, design, supply of equipment, construction, operation, and maintenance of the power plants, grid connections, and the commercialization of the produced electricity.
Project investors will partner with SHAEMS in the relevant SPV. The electricity will be commercialized through a 25-year power purchase agreement with the designated purchaser and the SPV.
According to the latest developments, a 30-megawatt solar park is planned in Beni Ounif in Bechar Province as part of the 1 GW initiative. Ismail Mougari, the director-general of SHAEMS, said the first electricity is expected to be generated from this park by late 2023 to early 2024. The power generated from the Beni Ounif will be sold to Sonelgaz for 25 years.
Top Photo: A photovoltaic solar power installation - Stock Image (Daniel Nel | Dreamstime)