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Algeria is set to launch a call for tenders for 1,000MW of clean energy.
- The tenders will be launched from June and July and divided into 10 lots of 100MW each.
- Selected companies will be required to source clean energy construction components and materials from local equipment manufacturers.
The Algerian government intends to increase the share of renewable energy in the country’s energy mix with a call for tender for 1,000MW of clean energy. The majority of this capacity will come from solar power. The Algerian government has empowered the Minister of Energy Transition and Renewable Energies, Chems Eddine Chitour, to manage and supervise the tender process. The call for tenders is expected to occur between June and July and divided into 10 lots of 100MW each.
The Algerian government plans to place bankable electricity purchase agreements (in dollars) for selected independent power producers (IPPs). However, investors have to meet certain criteria, such as locally manufactured equipment, notably solar panels, assembly structures and electrical cables. Algeria has a significant local solar power components manufacturing capacity. In the Boukherana industrial zone, Algerian company Milltech’s factory can produce 100 MW of solar panels per year. Another factory in Ouargla is set to begin the production of solar panels later this year.
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The government believes that increased local sourcing for clean energy power plants components will reduce electricity purchase prices. Algeria current installed capacity of 21GW is sourced almost completely from fossil fuels, with natural gas making up 98 per cent of all generation capacity.
The country currently has a 2030 target of installing about 20GW of clean energy comprising 13.7GW of solar and 5Gw of wind. This is, however, very unlikely.