Algeria’s government is launching a call to tenders to produce 1 GW of renewable energy for international Independent Power Producers (IPPs) between June and July this year.
In order to streamline the process, the Minister of Energy Transition and Renewable Energies, H.E. Chems Eddine Chitour, will manage and oversee the procurement exercise, according to the official gazette, published 29 April this year.
The government is expected to draft and release a bankable electricity purchase agreement for the IPPs, mandating foreign investors meet certain requirements – particularly the use of locally manufactured equipment – which is expected to reduce electricity prices in the country.
In 2019, tenders were held for off-grid, hybrid solar-diesel and photovoltaic projects as part of the country’s Programme for the Deployment of Renewable Energy and Energy Efficiency, which aims to deploy 22 GW of clean energy generation capacity by 2030. Of this energy generation, 13.6 GW will be produced by solar, the most abundant resource in the North African country and 5 GW from wind.
Algeria is expected to issue another three tenders of similar magnitude each year between 2022 and 2024.