Algerian Renewable Energies Company (Shaems) has awarded contracts to develop five solar photovoltaic (PV) projects with a combined capacity of 1,000MW across the North African country.

The solar schemes’ capacities range from 50MW to 300MW.

A team led by Turkiye’s Ozgun won the contract to develop the 300MW solar PV project in Hassi Delaa. The project will require an investment of AD24.6bn ($182.5m).

China State Construction Engineering Group (CSCEC) won the contract to develop the other 300MW scheme in Foulia. The project will require an investment of AD28.3bn.

An Italian-local consortium of Cosider Canalisation and Fimer won the contract to develop the 250MW Tamacine solar PV project. The local Amimer Energie won the contracts to develop the solar PV schemes in Beni Ounif and Ain el-Beida, which have capacities of 50MW and 100MW, respectively.

MEED reported in June 2022 that more than 100 companies indicated an interest in participating in the tender, which is part of the country’s plan to build 1,000MW of renewable capacity each year until 2035.

At the time, it was reported that 11 sites with a combined total area of 4,250 hectares had been selected for the project. 

Shaems is a division of Algeria’s Energy Transition & Renewable Energies Ministry, overseeing the tendering process and allocating the solar PV project sites to successful bidders.

It will also own an equity stake in the special purpose vehicles (SPV) responsible for each project’s development, financing, design, construction, operation and maintenance.

The SPVs are expected to sign a 25-year power-purchase agreement with the designated purchaser of the renewable power produced in each plant.

Algeria expects the project to generate $3.2bn-$3.6bn in investment.

Algeria’s installed solar PV capacity as of the end of 2021 stood at over 420MW, or about 2 per cent of total installed power generation capacity.

The country’s National Renewable Energy & Efficiency Development Plan, announced in 2015, aims to increase the domestic renewable generation capacity to 22GW, or 27 per cent of the total domestic generation capacity, by 2030.

Solar PV is expected to contribute more than 13.5GW of the total.