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Sonelgaz signs deals for the development of 3 GW of solar capacity in Algeria

The Algerian state-owned group Sonelgaz has signed 19 contracts with national and foreign companies for the construction of 20 solar projects totalling a capacity of 3 GW, originating from two tenders. The capacity was allocated as part of a 1 GW solar PV tender launched in July 2023 and a 2 GW solar PV tender initiated in February 2023. 

The 2 GW tender will see the development 15 solar PV projects, with capacities ranging from 80 MW to 220 MW, in 12 Wilayas (provinces) across Algeria. 14 contracts were signed for this tender with 8 bidders. The construction of two power plants were awarded to an Algerian company, the construction of three power plants was awarded to Algerian and foreign joint ventures, and the construction of the remaining nine power plants were awarded to nine separate foreign companies.

As for the 1 GW tender, it involves the construction of five solar projects in five Wilayas, with capacities ranging from 50 MW to 300 MW. The construction of two power plants was awarded to an Algerian company, the construction of another two power plants was given to Algerian and foreign joint ventures, and the construction of one power plant was awarded to a foreign company. 

As of 2022, solar represented only about 1.7% of Algeria’s installed capacity with 460 MW and less than 1% of its power generation with around 690 GWh. Algeria’s 2022 Program for the Development of Renewable Energy targets 22 GW of renewable capacity by 2030, divided between 62% of solar PV and 23% of wind.