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Sonelgaz, Algeria’s National Electricity and Gas company through its subsidiary Sonelgaz-EnR, signed concession agreements with several local and transnational companies for the financing, construction, and operation of 3,000 MW of photovoltaic solar energy. A game changer for this North African country dependent on fossil fuels.
Sonelgaz is focusing its strategy on the private sector, and recently signed 20 concession contracts with companies and consortia through its subsidiary Sonelgaz-EnR, for the installation of 3,000 MW of installed capacity. The concessionaires were selected following two invitations to tender, the first for 1,000 MW, launched in 2022, for the construction of five solar photovoltaic plants with a capacity of between 50 and 300 MW. The second call for tenders, launched in 2023, covers the construction of 15 solar farms with capacities ranging from 80 to 220 MW.
For this second phase, Sonelgaz-EnR is aiming for a capacity of 2,000 MW. Several investors qualified a few months ago for its development. These independent power producers (IPPs) include some fifteen Chinese companies, the best known of which on the African energy scene is PowerChina, which has formed a partnership for the purpose with its compatriot Sinohydro, which has a reputation for building hydroelectric infrastructure. There is also China Petroleum Engineering and Construction, the subsidiary of China National Petroleum Corporation (CNPC). These Chinese companies were in competition not only with the local subsidiary of the Lebanese group Butec but also with Turkish companies and several Algerian firms.
With these two waves of solar power plants, Algeria is hoping to catch up with its neighbours in the North African sub-region, who have the same solar potential. These include Morocco and especially Tunisia, where solar programmes have been stalled for several years, as well as Egypt, which already operates an installed capacity of 1,650 MWp (connected to the national electricity grid) in the governorate of Aswan. These are projects to watch over the coming months.
Read Also:
https://trendsnafrica.com/eni-to-set-up-a-second-solar-park-in-algeria/
https://trendsnafrica.com/the-government-of-algeria-calls-for-tenders-for-solar-projects/
Sonelgaz is deploying this 3,000 MW of solar capacity as part of the Renewable Energy Development Programme launched by the Algerian Ministry of Energy, to deploy 22,000 MW of capacity by 2030 for the national market, while maintaining the export option as a strategic objective, market conditions permitting. Above all, this program will help Algeria to reduce its use of fossil fuels to produce electricity.
