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
  • French contractor begins work on Morocco’s Noor Atlas project

    24 March 2026

     

    France-headquartered Eiffage is carrying out construction works on phase one of Morocco’s 305MW Noor Atlas solar photovoltaic (PV) programme, according to sources close to the project.

    Morocco’s National Office of Electricity & Drinking Water (Onee) and the Moroccan Agency for Sustainable Energy (Masen) recently signed power purchase agreements (PPAs) for the programme covering the development, financing, construction, and operation of six solar PV power plants.

    The plants were tendered in two lots in 2022, covering the eastern and southern parts of the country.

    The first lot comprises the following four projects:

    • Ain Beni Mathar: 121MW
    • Enjil: 42MW
    • Boudnib: 33MW
    • Buonane: 29MW

    The second lot comprises two solar PV projects in Tan-Tan and Tata, with each having a planned capacity of 40MW.

    Eiffage, through its subsidiary Clemessy Maroc, previously carried out electrical works on Morocco’s Noor Tafilalt solar programme.

    However, it is understood that the contract for lot one is the company’s first role as full engineering, procurement and construction contractor for a solar project in the region.

    Local media reports previously said plants under the programme will be developed by consortiums comprising Moroccan and European companies.

    Contractor details for phase two of the project have not been disclosed. However, it is understood that construction work has begun, with the project scheduled to begin delivering electricity by July 2027.

    In 2025, Masen established a dedicated subsidiary (Noor Atlas Energy Company) to oversee the project’s implementation.

    Germany’s development bank KfW and the European Investment Bank (EIB) are providing concessional financing, while Bank of Africa is providing commercial financing (local) for the project.

    US/India-based Synergy Consulting is acting as consultant on the project.

    In May 2025, Onee obtained EIB financing of €170m and KfW financing of €130m to expand the national grid by 731  kilometres and increase its evacuation capacity by 1,850 MVA.

    EIB previously announced in 2018 that it is providing concessional financing of €129m under the ELM guarantee for Noor Atlas, against a total project cost of €272m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16100781/main.jpg
    Mark Dowdall
  • Kuwait contractor wins Shagaya power grid deal

    24 March 2026

    Kuwait-based contractor Power Grid Company has won a KD48.6m ($158.7m) contract to build a 400kV overhead transmission line linking the Shagaya solar energy generation station with Wafra in southern Kuwait.

    The contract was awarded by Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE).

    Power Grid was one of three firms that submitted bids last year, according to regional projects tracker MEED Projects.

    The other bidders included India’s Larsen & Toubro, with an offer of $135m, and Kuwait’s National Contracting Company, with a bid of $140m.

    The transmission line will connect Shagaya to the Wafra (Z) transformer station. The project forms part of the wider Shagaya masterplan, which is being developed as a key component of Kuwait’s renewable energy strategy, including the Shagaya renewable energy complex.

    The Kuwait Authority for Partnership Projects (Kapp) is currently procuring a 500MW solar photovoltaic (PV) independent power project (IPP) in partnership with MEWRE.

    As MEED exclusively reported, the deadline to bid for a contract to develop the plant was recently pushed back to the end of April.

    The plant is being developed under zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    In January, three consortiums submitted bids for a contract to develop Kuwait’s first utility-scale solar PV plant.

    The Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one IPP will have a total power generating capacity of 1,100MW.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097432/main.jpg
    Mark Dowdall
  • Prequalification begins for Cairo Metro Line 2 upgrade

    24 March 2026

     

    Egypt’s National Authority for Tunnels (NAT) has issued a request for prequalification (RFQ) notice inviting firms to prequalify for a contract to rehabilitate and upgrade the Cairo Metro’s Line 2 network.

    The notice was issued in mid-March. The prequalification submission deadline is 30 April.

    According to the official notice, the scope of the works includes the design, execution, supply, installation, testing and commissioning of major system upgrades across the Cairo Metro Line 2 infrastructure and stations, along with integration into existing operational systems.

    The project aims to refurbish and modernise the metro line systems and enhance onboard communications across the current rolling stock fleet, to extend the metro system’s operational lifespan by at least 25 years.

    The contract duration is five years.

    The project is receiving a financing grant of €250m ($263m) from the European Bank for Reconstruction and Development (EBRD), €240m ($252m) from the European Investment Bank (EIB) and €60m ($63m) from the Egyptian government.

    Cairo Metro Line 2 has been operational since 1996. The line runs from Shubra El-Kheima to El-Mounib, spanning about 21.5 kilometres (km) with 20 stations.

    The route includes 12 underground stations, six at-grade stations and two elevated stations.

    The track infrastructure is built around two primary track configurations.

    The line carries about 1.8 million passengers a day.

    The project is part of NAT’s key planned railway projects in the country. According to NAT’s official website, eight key projects, including metro lines, high-speed rail and light rail transit, are currently in the pipeline.

    According to GlobalData, the Egyptian construction industry is expected to grow by 6.4% in 2026, supported by rising foreign direct investment in the country, coupled with the government’s investment in energy and industrial construction projects.

    The industry’s expansion in the forecasted period will be supported by investments outlined in Egypt’s financial year 2025-26 budget, approved in June 2025. The budget includes a total government spending of E£4.6tn ($91.3bn).

    The infrastructure construction sector is expected to expand by 6.9% from 2026 to 2029, supported by investments in road, rail and port infrastructure projects.

    According to MEED Projects, Egypt has been the most active market for the rail sector in the Mena region, with contracts worth over $34bn awarded in the past decade.

    MEED’s March 2026 report on Egypt includes:

    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach
    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097414/main.jpg
    Yasir Iqbal
  • Contractors submit bids for Safaniya onshore facilities project

    24 March 2026

     

    Contractors have submitted bids to Saudi Aramco for a project to build onshore surface facilities to boost productivity at the Safaniya offshore oil field development in Saudi Arabia.

    The Safaniya field is the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day (b/d). Discovered in 1951, the field is located in the Gulf waters, approximately 265 kilometres north of Aramco’s headquarters in Dhahran.

    Contractors submitted bids for the Safaniya onshore surface facilities project by the deadline of 17 March, according to sources.

    Aramco issued the main tender for engineering, procurement and construction (EPC) works on the Safaniya onshore surface facilities project on 9 July last year.

    Contractors were initially given deadlines of 24 October and 7 November to submit technical and commercial bids for the project, MEED previously reported. Aramco later merged the technical and commercial bid submission requirements and extended the techno-commercial proposal submission deadline until 31 January.

    Prior to that, Aramco is understood to have issued the solicitation of interest document for the Safaniya field onshore surface facilities project in May, with contractors submitting responses by 28 May.

    The EPC scope of work has been divided into two packages:

    • Package 1 – Water treatment and injection plant:
      • Building new water injection units
      • Expansion of gas-oil separation plant one
      • Building storage tanks, transfer pumps and substation
      • A central processing facility at the Zuluf field development, including water transfer pumps, chemical injection skids and other components
         
    • Package 2 – Produced water utilities:
      • Fire water system
      • Potable water units
      • Utilities
      • Nitrogen generation system
      • Site buildings
      • Electrical infrastructure
      • Security systems
      • Telecommunications networks

    In addition to pursuing the onshore facilities project to boost Safaniya’s productivity, MEED also previously reported that Aramco had issued three key offshore tenders last year for the field’s next expansion phase.

    Contractors in Aramco’s Long-Term Agreement pool of offshore service providers submitted bids for the three tenders – Contracts Release and Purchase Order (CRPO) numbers 154, 155 and 156 – by 31 August.

    Aramco awarded Italian contractor Saipem the EPCI contract for CRPO 156, valued at an estimated $500m, in February. The scope of work on the contract covers the EPCI of a 48-inch trunkline, comprising approximately 65 kilometres offshore and 12km onshore, as well as associated subsea facilities at the Safaniya oil field.

    The Saudi energy giant is evaluating bids for the other two tenders for the Safaniya offshore field expansion project and is expected to award contracts within the first quarter.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097410/main1828.jpg
    Indrajit Sen
  • Local firm wins Al-Ras Dubai Walk masterplan deal

    24 March 2026

     

    Abu Dhabi-based firm Western Bainona Group has won a contract from Dubai’s Roads & Transport Authority (RTA) to develop the first phase of the Dubai Walk masterplan in the Al-Ras area.

    The project’s first phase focuses on developing the historic Al-Ras walkway, including 12 kilometres (km) of pedestrian paths and 5km of cycling tracks, along with the rehabilitation of 10 artistic spaces.

    The Al-Ras walkway project will link pedestrian routes with 11 metro stations, bus stops and marine transport points to improve first- and last-mile access.

    The RTA said that the works include upgrades to internal pedestrian paths and the waterfront promenade, using straightforward urban design interventions that will maintain the area’s historic identity.

    Planned improvements include wider sidewalks, added shade elements, more seating, increased greenery and heritage-sensitive wayfinding signage.

    The overall masterplan includes extending a connected pedestrian network across 160 locations, with plans to build and upgrade around 6,000km of walkways throughout the emirate by 2040.

    It also includes developing 110 pedestrian bridges and underpasses to improve links between districts, supporting a shift in walking and other low-impact mobility from 16% of trips in 2025 to 25% by 2040.

    Proposed highlights include a bridge on Al-Ittihad Street between Al-Nahda and Al-Mamzar; another on Tripoli Street linking Al-Warqa with Mirdif; a crossing on Al-Khawaneej Street connecting Mushrif and Al-Khawaneej; and a bridge on Dubai-Al-Ain Road tying Dubai Silicon Oasis to Dubailand.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097076/main.jpeg
    Yasir Iqbal