Algeria launches feed-in tariff

Algeria has introduced a feed-in tariff (FIT) scheme for photovoltaic installations.

According to a new regulation published in the country’s official journal last week, ground-mounted solar parks of more than 1 MW of capacity will be eligible for the FIT.

The FIT will be paid for a period of 20 years, albeit at different rates for the first five years and the following 15 years. A limit on the yearly number of hours for which the FIT will be paid has also been introduced. In the regulation there is no reference of a cap for the volume of capacity that can apply for the FIT.

The FIT for installations of between 1 MW and 5 MW has been fixed at DZD 15.94 (US$0.2028) per kilowatt hour the first five years. For the following 15 years the FIT has been fixed at between DZD 11.80 ($0.1502) and DZD 20.08 ($0.2555) per kilowatt hour depending on the project.

For solar parks with a power of more than 5 MW, the FIT has been fixed at DZD 12.75 ($0.1622) per kilowatt hour during the first five years and between DZD 9.44 ($0.1201) and DZD 16.06 ($0.2044) per kilowatt hour for the following 15 years.

The FIT will only be paid for a limited number of hours per year. After these are achieved, the electricity can be sold at conventional prices.

Algeria is seeking to increase the share of renewable energy in the country’s power grid. The country is aiming to achieve 22 GW of renewable energy in 2030. Several large-scale solar projects are currently planned. Last year, electricity company Sonelgaz awarded solar projects amounting to 400 MW.