Algeria will soon float a massive tender to set up more than 4,000 megawatts of solar power capacity.

According to media reports, Algeria’s Ministry of Energy will soon launch a tender for 4,020 megawatts of solar PV capacity. The tender is expected to be floated by this month’s end or latest by early next year.

The tender is part of the Algerian government’s renewable energy policy announced in 2015. The government is expected to split the tender into three phases of around 1,350 megawatts of capacity each. Projects allocated through these tenders will be located in Hautes Plaines (High Plains) in northern Algeria as well as southern Algeria.


Special purpose vehicles will be set up by the government to implement these large-scale power projects. Algerian companies and government institutions will hold a 51% stake in these special purpose vehicles, while the balance will be owned by international investors. Of the 51% stake to be held by domestic investors and companies, 40% will be held by the Algerian government-owned oil company Sonatrach, and 11% will be controlled by Sonelgaz and other public or private Algerian companies. Each project will be funded through 30% equity and 70% debt finance.

Algeria has set a long-term target to have 13,500 megawatts of solar PV power capacity by 2030. Thus, additional solar power tenders can be expected in the future. The north African country also plans to set up 5,000 megawatts of wind energy and 2,000 megawatts of concentrated solar power capacity by 2030.