When it comes to generating renewable energies, Algeria lags behind its Moroccan and Egyptian neighbors. But the country wants to diversify its electricity mix. This justifies the tender that Algiers is currently preparing. The aim is to achieve a newly installed capacity of 1,000 MW. This electricity is generated from renewable sources, the largest of which in this North African country is solar power.
In a decree published in the Official Gazette on April 29, 2021, the Algerian government authorized Chems Eddine Chitour, the Minister for Energy Transition and Renewable Energies, to manage and monitor the entire operation. The tender, which will start between June and July 2021, will be divided into 10 lots with 100 MW each, which are open to foreign investment.
With a few conditions …
As a result, the Algerian government is preparing to enter into a bankable power purchase agreement (in US dollars) for the Independent Power Producers (IPPs), which will be selected at the end of the process. However, according to Mouloud Bakli, president of the Algerian think tank Club Energia, these investors must meet certain requirements, such as using equipment made locally in Algeria. These are mainly solar panels, mounting structures and electrical cables.
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There are already several factories in Algeria that manufacture solar energy systems. In the Boukherana industrial zone near Chelghoum El Aid (400 km from Algiers), the Algerian company Milltech has one factory Can supply 100 MW solar modules per year. In the Wilaya of Ouargla, another factory will soon produce 160 MWp solar modules per year. In June 2020, the Algerian company SPS (Système Panneaux Sandwiches) and Qi-Energy, a company based in Dubai in the United Arab Emirates, founded a Joint venture for the production of assembly structures for the modules.
A new commitment
The local procurement of building materials for renewable energy systems will lower electricity purchase prices in Algeria. According to Business France, the North African country has an installed capacity of 21,000 MW (2019). 99% of this electricity is generated from hydrocarbons, especially natural gas (98%) and oil. As part of the Algerian Renewable Energy and Energy Efficiency Development (PENREE) program launched in 2012, the authorities anticipated an installed capacity of 20,000 MW of renewable energy, including 13,575 MW for solar and 5,000 MW for wind by 2030. The opportunities for this Achieving goal are low.
Jean Marie Takouleu