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
  • Chinese contractor appointed for 500MW Oman solar plant

    22 July 2026

    China's Shanxi Installation Group has secured the estimated $222m engineering, procurement and construction (EPC) contract for the 500MW Al Kamil I Solar Independent Power Project (IPP) in Oman.

    In a filing on the Hong Kong stock exchange, the company said the deal marks its first major project in the Middle East.

    The contract covers the engineering, procurement, construction, grid connection, testing and commissioning of the utility-scale solar photovoltaic plant, as well as 2.5 years of operation and maintenance. 

    A consortium comprising France's EDF Power Solutions, Oman National Engineering & Investment Company (ONEIC) and OQ Alternative Energy signed the power purchase agreement (PPA) for the project in June with Nama Power & Water Procurement Company (Nama PWP).

    Nama PWP is the sole procurer of new electricity generation capacity in Oman.

    The Al Kamil I solar IPP is EDF Power Solutions' third renewable energy project in Oman, following the 500MW Manah 1 solar PV IPP and the 120MW JBB wind IPP.

    As previously reported, the Al Kamil I project is part of Nama PWP's renewable energy development pipeline, which also includes the 400MW Sinaw and 280MW Marsa solar IPPs.

    Nama PWP is currently tendering supervisory services for the Marsa IPP with a bid submission deadline of 26 July.

    The pipeline also comprises the 800MW Mahout and 300MW Duqm 2 wind IPPs, both targeted for commissioning between 2027 and 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17725741/main.jpg
    Mark Dowdall
  • Fluor wins feed contract for key Bahrain aromatics facility

    22 July 2026

    Bahrain’s Gulf Petrochemical Industries Company (GPIC) has awarded US-based consultant Fluor a contract for front-end engineering and design (feed) on an aromatics facility in the country.

    The project will be an expansion of GPIC’s existing petrochemicals facility in Bahrain’s downstream complex in Sitra, which produces ammonia, urea and methanol.

    The new aromatics facility will utilise “commercially-proven process technologies” to produce approximately 1.2 million metric tonnes a year (t/y) of paraxylene and 500,000 metric t/y of benzene, Texas-headquartered Fluor said.

    Paraxylene and benzene are critical building blocks for plastics, polyester fibers and packaging materials, supporting global demand for high‑performance consumer and industrial products.

    Founded in 1979, GPIC is a joint venture of Bahraini state energy enterprise Bapco Energies, known at the time as Nogaholding; chemicals giant Saudi Basic Industries Corporation (Sabic); and Petrochemical Industries Company – a subsidiary of state energy conglomerate Kuwait Petroleum Corporation. The three partners hold equal stakes of 33.3% in GPIC.

    GPIC utilises locally available natural gas as feedstock to manufacture high-quality chemicals and fertilisers for domestic consumption and export, including 1,200 metric tonnes a day (t/d) of ammonia, 1,200 metric t/d of methanol and 1,700 metric t/d of granular urea.

    ALSO READ: Bahrain taps consultants for studying use of nuclear power

    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/17725737/main1255.jpg
    Indrajit Sen
  • Firms submit bids for second Hassyan SWRO pipeline contract

    22 July 2026

    Dubai Electricity & Water Authority (Dewa) has received bids from three contractors for a second pipeline contract relating to the Hassyan seawater reverse osmosis (SWRO) network expansion.

    Project two requires contractors to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the plant's phase two network.

    Local firm Tristar Engineering & Construction submitted the lowest offer of AED792.59m ($215.8m), according to tender results published by the state utility.

    Green Oasis General Contracting (UAE) submitted a bid of AED800.02m ($217.8m) and Wade Adams Contracting (UAE) made the other compliant offer of AED989.65m ($269.5m).

    In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.

    Earlier in July, eight contractors submitted bids for project one of the Hassyan pipeline network expansion.

    Dewa also has a third contract out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.

    Project three was tendered on 26 January and has a bid submission deadline of 29 July.

    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/17723861/main.jpg
    Mark Dowdall
  • Riyadh seeks contractors for Expo Icon structure

    22 July 2026

     

    Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, has asked contractors to express interest in the construction of the Icon, one of the key landmarks at the site.

    The structure will be located at the entrance of the Expo 2030 Riyadh site, within the Collaboration Precinct.

    ERC issued the expressions of interest notice on 20 July. The deadline for submissions of interest is 23 July.

    The structure will be connected to the metro station and will serve as a gateway to the event.

    It will be 66 metres tall and will comprise an observation platform, food and beverage outlets and other features.

    The total built-up area will be approximately 16,279 square metres and it will be able to accommodate more than 1,450 visitors an hour during the event.

    The contract duration is 29 months from the start of construction.

    ERC tendered the contract for the construction of the Saudi Arabia pavilion at the site in May.

    The pavilion is a major asset located within the venue's KSA District, on the eastern side of the Expo 2030 Riyadh masterplan, within the Loop of Nations district.

    Construction progress

    The tendering of the pavilion structure followed swift progress on the site’s infrastructure development works.

    In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Al-Yamama Company.

    The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.

    These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners. That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, and electric vehicle charging stations.

    The overall infrastructure works – covering the construction of main utilities and civil works at Expo 2030 Riyadh – are split into three packages:

    • Lot 1 covers the main utilities corridor;
    • Lot 2 includes the northern cluster of the nature corridor;
    • Lot 3 comprises the southern cluster of the nature corridor. 

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    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/17723204/main.jpg
    Yasir Iqbal
  • EtihadWE tenders $150m Ajman substation project

    21 July 2026

    The UAE’s Etihad Water & Electricity (EtihadWE) has tendered a contract to build three new substations in Ajman.

    Estimated to cost $150m, the project involves the construction of three new 132/11kV substations in the Bahya, Rumaila and Liwara districts. It also includes associated 132kV underground cabling works to connect the substations to the existing transmission network.

    The bid submission deadline is 10 August.

    According to tender documents, the project will add distribution capacity to support load growth and improve the security of electricity supply in the emirate.

    The scope of work includes site preparation, construction of three substation buildings and foundations, installation of 132kV GIS/AIS switchgear, 132/11kV power transformers and 11kV switchgear, as well as protection, control, Scada and telecommunications systems.

    Etihad WE is responsible for electricity and water services in Ajman, Umm Al-Quwain, Ras Al-Khaimah, Fujairah and parts of Sharjah. The utility has been investing in new substations and transmission infrastructure as electricity demand continues to increase across the Northern Emirates.

    This includes a 132/33/11kV substation project on Al-Marjan Island in Ras Al-Khaimah. Construction work is ongoing on the project, with Maetal Dubai serving as the main contractor.

    EtihadWE is also finalising a new masterplan that will cover network capacity requirements and expansion priorities for the next 10 to 15 years.

    In June, Abdulla Al-Khemeiri, chief operations officer, told MEED: “We are currently reviewing it, and we need to obtain shareholder approval first. Once it is approved, it will be released, hopefully by the end of the year.” 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17710661/main.jpg
    Mark Dowdall