Solar Tenders: Algeria Aims 3 GW of Renewable Energy by 2025
Algeria is launching a monumental expansion of its renewable energy capacity, cementing its commitment to diversifying its long-standing gas-dependent economy. On March 14, 2024, the nation officially signed contracts for 19 projects that will collectively add 3 GW of solar power to its grid by 2025, marking a significant step toward its ambitious clean energy goals.
A Forward Leap with Solar Tenders: Algeria Aims 3 GW of Renewable Energy by 2025
This massive undertaking stems from two key procurement rounds managed by the national electricity and gas company, Sonelgaz. The first was a 1 GW program launched in late 2021, comprising five projects ranging from 50 to 300 MW. This was followed by a larger 2 GW tender in February 2023, which attracted considerable international interest with 77 offers from 20 different bidders for its 15 available project sites. These projects, sized between 80 and 220 MW, are strategically located across 12 provinces to maximize the country’s abundant solar resources.
The scale of this initiative is transformative. As of the end of 2021, Algeria had only 423 MW of installed solar capacity, according to the International Renewable Energy Agency (IRENA). The new 3 GW program will therefore increase the country’s solar footprint nearly eightfold, signaling a decisive pivot away from its reliance on natural gas for power generation.
International Partnerships and Local Development for Solar Tenders: Algeria Aims 3 GW of Renewable Energy by 2025
The successful tender process has brought together a consortium of local Algerian firms and major international players, particularly from China and Turkey. This collaborative model is central to the project’s structure, which utilizes Engineering, Procurement, and Construction (EPC) contracts requiring a two-year construction timeline.
A flagship example of this partnership is the 300 MWac (362 MWdc) Hassi Delaa Laghouat PV plant. For this project, Turkish firm Özgün İnşaat will utilize high-efficiency Hi-MO 7 modules from industry giant LONGi. Once operational, this single facility is expected to generate 700 GWh of clean electricity annually and offset approximately 450,000 tons of CO₂ emissions, showcasing the tangible impact of these large-scale solar installations.
Policy Shifts and Future Ambitions for Solar Tenders: Algeria Aims 3 GW of Renewable Energy by 2025
Algeria’s renewed push into renewables is supported by crucial policy reforms designed to attract foreign capital. A key development was the 2022 decision to abolish the restrictive “51/49” rule, which previously capped foreign ownership in Algerian ventures at 49%. By allowing majority stakes, the government has created a more appealing environment for international investors.
These ambitious new tenders are a cornerstone of Algeria’s broader vision to install 15 GW of renewable energy capacity by 2035. The nation is also exploring green hydrogen production as part of its long-term strategy to become a major clean energy exporter. By leveraging its vast solar potential and fostering international partnerships, Algeria is decisively positioning itself as a future leader in the regional energy transition.
Sources
- Can Algeria’s solar segment shine brighter after its latest tenders?
- LONGi Supplies Hi-MO 7 Modules for Landmark 362MW Solar Project
- Algeria 3GW Solar Award Signals Major Renewables Push
- Algeria’s Sonelgaz awards 3 GW of solar projects
- LONGi to supply Hi-MO 7 modules for landmark project in Algeria
