Algeria has introduced a feed-in tariff (FiT) scheme for solar PV installations: ground-mounted solar parks with a capacity over 1 MW will be eligible for the FiT. The feed-in tariff will be granted for a period of 20-years, with different rates for the first five years and for the following 15 years. It will be capped with a yearly operation hour volume; after the limit is reached, electricity will be sold at conventional prices.
For PV installations between 1 MW and 5 MW, the tariff will be set at DZD15.94/kWh (US$20.28c/kWh) for the first five years and between DZD11.80/kWh and DZD20.08 (US$15.02-25.55c/kWh) for the following 15-year period, depending on the project. Solar facilities above 5 MW will benefit from a tariff of DZD 12.75/kWh (US$16.22c/kWh) for the first period and will receive between DZD 9.44 and DZD 16.06/kWh (US$12.01-20.44c/kWh) for the following 15-years.
By 2025-2030 Algeria aims to generate 15% of electricity from renewable sources, including solar energy, which should account for 80%, and wind energy.
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