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Algeria issues 150 MW solar tender


Algeria issues 150 MW solar tender

Through the tender, the Algerian government will select IPP solar projects with a power range of 10 MW to 50 MW. The projects will be developed with the Build-Own-Operate (BOO) approach and will be located in the southwestern part of the country. Domestic content rules impose the use of solar modules assembled in Algeria, as well as locally manufactured mounting structures and cables.

The Algerian Electricity and Gas Regulation Commission (CREG) has issued a tender for the construction of several PV power plants with a combined capacity of 150 MW in southwestern Algeria on November 18.

The projects, which must have a power range of 10 MW to 50 MW, will be developed with the Build – Own – Operate (BOO) approach and will be awarded a 20-year PPA. Around 50 MW of capacity will be deployed in Guerara, in the region of Ghardaïa, while another 50 MW will be located in Diffel, in the region of Biskra. Furthermore, the region of Ouargla will host three 10 MW installations in the municipalities of Meggarine, Nezla, and Belhirane, while the region of El Oued will see the deployment of two solar plants of the same size in Tendala and Nakhla.

Interested developers will have time until Feb. 19, 2019 to submit their project proposals. Local private and public entities will be allowed to participate in the reverse auction process in consortia with foreign players in a 51/49 joint venture scheme.

In a statement to pv magazine, President of Algerian solar energy association, Club Energia (branch of FCE), and managing director of Tell Group, Mouloud Bakli explained that bids must be submitted with an LCOE based on DZD/kWh, and that IPP consortia can be  investment vehicles (SPV) that are able to bid with an Algerian investor. He also confirmed that the tender includes rules for local content for modules, mounting structures and cables, with all bidders having to source locally those components of the supply chain that already available.

Most of Algeria’s existing and upcoming module factories will be  capable of producing the latest technologies available on the market including double glass, mono PERC, and bifacial panels, according to Bakli. Except solar cells, most of PV components including glass, junctions boxes, aluminium frames and transparent films will be manufactured in the country, he also stated.  “There is now a solid growing solar manufacturing industry base under development in Algeria. We estimate that around 500 MW of solar module assembly capacity will be operational in the country by the second half of 2019,” said Bakli to pv magazine in May. “We also have several companies launching good quality mounting structures factories, and some of them under joint venture schemes,” he added.

Inverters, however, will still to have to be imported like in most emerging PV markets. We don’t believe there is huge added value in doing local manufacturing at this stage of our PV adoption and volume in the country, he also asserted.

The Algerian government had approved this and another tender 50 MW tender for the development of off-grid hybrid gas/diesel and solar projects in early June. The second tender, which will be held by Algerian state-owned power and gas provider, Sonelgaz thorugh its unit SKTM, is aimed at drastically lowering cost of  existing power generation stations in the south of Algeria, which are mostly based on fossil fuels. It will also have local content requirements as those included by the CREG in the 150 MW tender issued on November 18.

Both tenders are part of the country’s plan to deploy 22 GW of renewable energy power generation capacity by 2030, including 13.6 GW of PV.

Source PV Magazine

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