Algerian REN market

Prepared by:
Renewable Energy Partner
for Algeria British Business Council
May 2020

Opportunities

• Undoubtedly, the whole Algerian REN market (15,000 megawatts (MWs) by 2035 — revised down from 22,000 by 2030 (initial target in 2011)) still represents a huge opportunity
• Solar PV tenders up to 200MWs (150MWs IPP / 50MWs EPC) at end of 2018 / early 2019
  • Mildly successful in light of local political events of 2019
  • All EPC projects were tendered although work has yet to properly commence
  • However only one IPP bid for 50MWs retained. Still doubts whether this project will go ahead
• Very recently announced solar projects up to 4000MWs by 2024
  • 400/ 500MW per project
  • Implication of Sonatrach and Sonelgaz
  • No other details provided at this stage

Challenges:

• Very slow uptake since 2011 despite a lot of talk about REN in Algeria
• Consistency in the policy and implementation has been problematic
• Too many stakeholders and a lack of coherence. More generally, the inexperience of the stakeholders in REN needs to be addressed.
• The regulatory environment needs general improvement
• Financing solutions need to be found in order to unlock projects
• Political events of 2019 and more recent events (Covid 19 & very low O&G prices) mean that REN is low on the Gvt agenda

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