The Algerian Electricity and Gas Regulation Commission has concluded a tender launched in June. The one solar project selected will sell power at DZD8.28/kWh. The authority reportedly only published ceiling prices for energy bids on the day the exercise was completed.
State-owned gas and power provider Sonegalz intends to develop five hybrid projects in off-grid areas in the south of the country. The highest bid came in at the equivalent of $0.13/kWh.
Only eight of the 93 companies which acquired the technical specifications for the tender have decided to participate in the procurement exercise. Collectively, the submitted project proposals had a combined capacity of 90 MW. Domestic content rules required the use of solar modules assembled in Algeria, as well as locally manufactured mounting structures and cables.
A new report analyzing 10 solar markets throughout Africa claims that the continent’s PV market could expand from about 5 GW at present to up to 30 GW by the end of the next decade.
The power line, under development by Italian transmission company Terna and Tunisian gas and electricity group STEG since 2003, was originally conceived to export power generated in Tunisia to Italy but is now based on an electricity exchange in the opposite direction.
Through the tender, the Algerian Government will select IPP solar projects with a capacity range of 10-50 MW. The projects, to be located in the southwestern part of the country, will be developed on a Build-Own-Operate (BOO) basis. Domestic content rules require the use of solar modules assembled in Algeria, as well as locally manufactured mounting structures and cables.
Announcement of intent to deploy solar will not supplant the importance of fossil fuels to Algerian economy, states Sonatrach chief
In a conversation with pv magazine, Mouloud Bakli, president of the Algerian solar energy association, Club Energia (branch of FCE), says that multiple solar pipelines are set to be restarted by the Algerian government. Furthermore, two new tenders, for Independent Power Producer, and solar hybrid power, projects, will be issued by the end of Q2 2018. For all of these plans, local content requirement rules will apply. The existing local PV module industry, on the other hand, is expected to reach a combined annual capacity of 550 MW by the end of the year, while several manufacturers of mounting structures, cables, solar glass and junction boxes are already operating in the market.
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