meed-logo

line1 line2 line3
SIGN IN / REGISTER

Algeria jumpstarts renewables programme

8 July 2024

 

Generating renewable energy from wind and solar has remained a sideshow for Opec members Algeria and Libya, where renewable energy accounted for about 3% and 0.1% of overall electricity generation capacities, respectively, as of 2023.

This may be set to change, however, particularly for Algeria. Sonelgaz Energie Renouvelables, a subsidiary of Algeria’s state-owned utility, awarded 14 of the 15 solar photovoltaic (PV) packages it tendered last year.

The 15 packages have a total combined capacity of 2,000MW, requiring at least AD172bn ($1.2bn) of investment.

The Algerian Renewable Energies Company (Shaems) also awarded contracts to develop five solar PV projects with a combined total capacity of 1,000MW.

These developments stand in stark contrast to the bleak years of 2018-22, when virtually no new solar or wind farm contracts were awarded in Algeria, based on available data from regional projects tracker MEED Projects.

The recent contract awards improve the prospects for investors and contractors, especially in light of Algeria’s overall renewable energy pipeline of at least 12,000MW. This is the second-largest pipeline in the Middle East and North Africa (Mena) region after that of Saudi Arabia – exclusive of renewable energy capacity powering the planned green hydrogen and ammonia facilities, which makes Morocco the largest.

In terms of conventional power, data from MEED Projects indicates that oil- or gas-powered plants with a total combined capacity of more than 5,000MW are under construction in Algeria.

Libyan route

Meanwhile, Libya’s government has so far been more focused on augmenting its electricity generation capacity via the conventional route.

An estimated 5,000MW of oil- or gas-fired capacity, both from greenfield and retrofit projects, is understood to be under construction in Libya. The statuses of two solar PV contracts awarded by the state-owned General Electricity Company of Libya (Gecol) in 2022, with a combined capacity of 700MW, remain unclear.

Libya’s planned and unawarded oil- or gas-fired generation capacity sits at over 3,000MW, compared to only 500MW of renewable energy.

It comes as no surprise that in December 2023, the Tripoli-based Libyan Prime Minister Abdul Hamid Dbeibeh launched the country’s National Strategy for Renewable Energies & Energy Efficiency covering 2023-35.

Prepared by the Planning Ministry and the US Agency for International Development, the strategy outlines energy diversification objectives including increasing the contribution of renewable energy technologies such as solar and wind by as much as 4,000MW.

This is a lofty goal considering that no more than 10MW of solar PV schemes are officially registered in the country.

The strategy also aims to tap public-private partnerships to implement the first objective, and to adopt energy-efficiency measures including the restructuring of electricity pricing.

Managing risks

Some international utility developers and consultancy companies – particularly those headquartered in Japan and Europe – have spoken of their reticence about participating in tenders in either Algeria or Libya.

In addition to geopolitical considerations, they cite long or complicated procurement processes, the uncertainty of securing long-term project finance and the generally weak investment framework to support this type of project.

This helps to explain the dominance of their less risk-averse Chinese counterparts in the 14 contracts that Sonelgaz awarded in December.

A team comprising China International Water & Electric, China Nuclear Industry Huaxing Construction and Yellow River Engineering Consulting Company won five packages, which have a total capacity of 780MW. The five projects in Abadia, Batmet, Gueltet Sidi Saad, Douar El-Maa and Ouled Djellal will require a total investment of about AD65.1bn.

Other Chinese-led companies were selected for four other schemes: Shanxi Installation Group won the contract to develop the 80MW Ouled Fadel scheme; China State Construction Engineering Group won the 200MW Tendla solar project; a team of Power China International and Sinohydro will implement the 200MW Laghrous solar project; and Power China Zhongnan Engineering Corporation has been selected to develop the 150MW solar scheme in Khenguet Sidi Sadji.

A group comprising the local Cosider Canalisation and Italy’s Fimer, and the local company Hamdi, each won more than one contract, while a Turkish/local team comprising Ozgun and Zergoun won just one.

The tariffs proposed for these eight packages averaged AD7.382 a kilowatt-hour (kWh), or about $cents 5.4/kWh. This is approximately three times the average tariff seen in some GCC states and almost 20% higher than the global average.

While the past few months have provided some encouraging signals compared to previous years, if Algeria and Libya are to meet their energy diversification targets, the two countries will need to urgently improve their overall investment environment, procurement processes and projects pipeline to attract more developers to participate in their future independent power producer projects.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12051111/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Oman begins procurement for truck road PPP

    2 July 2026

     

    Oman’s Ministry of Transport, Communications & Information Technology (MTCIT) has tendered a contract for the sultanate’s second public-private partnership (PPP) road scheme.

    The project spans 66 kilometres between Al-Buraimi and Al-Dhahirah governorates, starting at the Al-Khatm border crossing in Mahdah and ending at the Al-Fath area in Dhank.

    Under the scheme, the winning bidder will design, build, finance and transfer the project, which is specially designed for heavy vehicles.

    MTCIT issued the tender on 30 June. The deadline to purchase tender documents is 11 August, and the clarification period will run from 11 to 18 August.

    The bid submission deadline is 30 January 2027.

    In August 2023, Oman shortlisted five of the eight prequalified teams to compete for the Salalah-Thumrait truck road (STTR) project, the sultanate’s first PPP road project.

    The project failed to materialise beyond that point.

    In January, MEED reported that Oman is planning to establish a new commercial railway line to transport essential supplies between Salalah and Thumrait – an initiative understood to have preceded the STTR project. The railway is planned to be implemented as a PPP.

    The scheme comprises the construction of a railway line approximately 150-170km long. Two main stations are planned: Salalah Station, near the port and food storage facilities, and Thumrait Station, which will serve as a distribution hub for the surrounding areas.

    Trains are expected to be equipped with refrigerated and dry containers. The scheme aims to reduce transport costs between the two areas by 20%-30%, and Oman plans to pitch the project to major food companies to secure long-term transport contracts.

    The proposed project timeline is:

    • 2025: Conduct economic, technical and environmental feasibility studies
    • 2026: Launch the project for investment on a PPP basis
    • 2027-30: Construction of the railway line
    • 2031: Trial operations
    • 2032: Full commercial operations

    The project is touted as a key initiative under Oman Vision 2040, which aims to transform the sultanate into a global logistics hub.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17525698/main.jpg
    Yasir Iqbal
  • Acwa signs Mauritania gas IPP agreements

    2 July 2026

    Saudi Arabia's Acwa has announced it has signed the public-private partnership (PPP) and power purchase agreement (PPA) for the 230MW N'diago combined-cycle gas turbine (CCGT) power plant in Nouakchott, Mauritania.

    The agreements cover the development, financing, construction and operation of the project. They were signed in Nouakchott  in the presence of senior officials from the Mauritanian government and Acwa chairman Mohammad Abunayyan.

    The project is Mauritania's first large-scale gas-fired independent power project (IPP). It is also expected to be the country's first major gas-fired power plant procured through a PPP structure.

    The CCGT plant will provide 230MW of baseload generation capacity. It will use Mauritania's domestic natural gas resources to supply the national grid.

    Sepaarately, the Mauritanian Electricity Company (Somelec) has been advancing procurment for the construction of a 50MW solar power and battery enery storage systems (Bess) IPP project. In May, it issued an expression of interest (EoI) request.  

    Mauritania currently has several wind and solar power projects in the early study stages, according to regional project tracker MEED Projects.

    There are also plans to build a 1,200MW wind power plant near port Etienne in the bay province of Nouadhibou, for which, China Energy Engineering was appointed as the main contractor in 2024. 

    Meanwhile, Acwa's portfolio comprises 111 assets that are operational, under construction or in advanced development. These represent investments of SR468.9bn ($125bn).

    According to the company, it has a power generation capacity of 98GW, including 52.3GW of renewable energy, and manages 9.7 million cubic metres a day of desalinated water globally.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17525605/main.jpg
    Mark Dowdall
  • Saudi water sector awaits next catalyst

    2 July 2026

    Commentary
    Mark Dowdall
    Power & water editor

    Saudi Arabia’s water sector is entering a critical period as developers and investors wait for the next signal that the kingdom’s project pipeline is moving forward.

    Seven months have passed since preferred bidders were announced for the Arana and Hadda independent sewage treatment plant (ISTP) projects, which together will provide 350,000 cubic metres a day (cm/d) of treatment capacity. The projects had been expected to reach financial close in the second quarter of this year, but have yet to do so.

    In parallel, Saudi Arabia’s Vision Invest was selected as preferred bidder last December for the estimated $2bn Riyadh-Qassim independent water transmission pipeline (IWTP) project. It was reported at the time that the company had submitted a levelised tariff of SR2.627 ($0.70) a cubic metre, almost 20% below the next nearest bid. The project, which will comprise an 859-kilometre pipeline with transmission capacity of 685,000 cm/d, had been tipped to reach financial close this quarter.

    The uncertainty extends beyond projects awaiting financial close. The developer tender bid deadline was recently pushed back again for the $150m Riyadh East ISTP. Meanwhile, Saudi Arabia’s Water Transmission Company (WTCO) is understood to be reviewing the delivery model for the Jubail-Buraidah and Ras Mohaisen-Baha-Mecca independent water transmission system (IWTS) projects.

    According to sources familiar with the plans, WTCO is considering establishing a special purpose vehicle that would take equity stakes in both schemes. This could further delay procurement for a project that has already seen multiple deadline extensions. Sharakat’s next wave of independent water projects (IWPs) is also in the pipeline. The first of these is not expected to be tendered until early 2027.

    According to regional project tracker MEED Projects, Saudi Arabia’s water infrastructure sector recorded $3.14bn-worth of awards in the first half of this year, substantially lower than the $7.58bn recorded during the same period in 2025.

    While activity has slowed, the longer-term outlook remains unchanged. Population growth and industrial expansion continue to drive demand for desalination, wastewater treatment and water transmission infrastructure. In the meantime, key stakeholders are looking for the next clear signal that the project pipeline is regaining momentum.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17510220/main.jpg
    Mark Dowdall
  • Contractor wins Jeddah road expansion deal in Riyadh

    2 July 2026

     

    The Royal Commission for Riyadh City (RCRC) has awarded a contract for the Jeddah Road Development Project in Riyadh.

    Local construction firm Saudi Pan Kingdom (Sapac) won the contract.

    Spanning 29 kilometres, the scheme includes 14 bridges and five lanes.

    Designed to handle up to 353,000 vehicles a day, the road is expected to be completed by 2028, with mobilisation works already under way.

    The project forms part of the third package of the RCRC’s Riyadh Main and Ring Road Axes Development Programme, which was announced in January.

    The other schemes include:

    > Taif Road Development Project: The project stretches 15km and includes four bridges, each with four lanes. It also features two tunnels. It will have a capacity of up to 200,000 vehicles a day and will enhance connectivity between Riyadh’s southern and western districts and the city centre.

    > Thumamah Road Development Project: The eastern section of the project will span 8km and include three bridges and three tunnels, linking the northern and eastern parts of Riyadh. The project will have a daily capacity of up to 200,000 vehicles.

    > King Abdulaziz Road Development Project: The northern section of the project stretches 4.7km and will include four bridges, four lanes and one tunnel, with a capacity of up to 450,000 vehicles per day.

    > Othman Bin Affan Road Development Project: The northern section will span 4.3km and include seven bridges and other related upgrades to enhance traffic flow across northern Riyadh. The project will have a daily capacity of up to 500,000 vehicles.

    > Second phase of engineering enhancements for congested areas: This project targets eight locations across the city’s road network, where advanced engineering solutions will be applied to reduce congestion and improve intersection performance, increasing traffic capacity by 40% to 60%.

    The contract for the Jeddah Road Development Project is the latest of several high-profile deals awarded by the RCRC recently. In May, it awarded an estimated SR5bn ($1.3bn) contract to construct the Sheikh Jaber Al-Sabah Road project in Riyadh.

    That contract went to a joint venture of Riyadh-based Al-Rashid Trading & Contracting Company (RTCC) and Turkiye’s IC Ictas.

    Stretching 12km, the project runs from Khurais Road to Al-Thumama Road and is a key component of the Second Eastern Ring Road scheme.

    Works include five interchanges: Prince Bandar, King Abdullah, Imam Abdullah, Dammam Road and Al-Thumama.

    In 2021, Saudi Arabia’s Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud said the population of Riyadh would double to 15-20 million people by 2030. 

    He directed government entities to work closely with the RCRC to prepare the city’s development strategy.

    The RCRC’s major projects include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park, Green Riyadh and several road development projects in the capital.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17523376/main.jpg
    Yasir Iqbal
  • Dubai announces First Al-Khail road development project

    2 July 2026

    Register for MEED’s 14-day trial access 

    Dubai’s Executive Council has announced the First Al-Khail Street Development project, which will run parallel to Sheikh Zayed Road.

    The scheme comprises a 15-kilometre elevated carriageway with three lanes in each direction.

    According to a Dubai Media Office statement, “The project will provide access to areas including Al-Barsha, Al-Quoz, Business Bay and Meydan.”

    “It is expected to serve more than 2.6 million people and reduce travel time on Sheikh Zayed Road by 51% during peak hours,” the statement added.

    Designed to accommodate more than 9,000 vehicles an hour, construction is expected to begin in the third quarter of 2027, with completion targeted for 2030.

    The development forms part of a wider AED18bn ($5bn) programme covering initiatives related to culture, trade, infrastructure, Emiratisation, finance, investment, urban planning and the city’s population census.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17523587/main.jpg
    Yasir Iqbal