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Algeria: Minister of Energy announces plans to increase solar capacity by 4GW by 2024

  • Africa
  • Energy and infrastructure - Clean energy

11-06-2020

Background

Further to Algeria’s national renewable energy and energy efficiency development plan adopted in 2015, i.e. to add 22 GW of renewables capacity by 2030, on 20 May, Algeria’s minister of energy, Arkab Mohamed, announced plans for a giant, 4 gigawatt (“GW”) photovoltaic solar project.

The project, dubbed TAFOUK1 will be developed through annual tenders up to 2024. The project is part of the Algerian government’s effort to boost generation from renewable energy sources and reduce reliance on fossil fuels.

TAFOUK1

TAFOUK1 will comprise of several solar parks which will be located across more than 10 provinces, known as wilayas in the Hautes Plaines region of the Atlas Mountains in northern Algeria covering a total area of around 6,400 ha (15,815 acres).It is estimated that the project will require an overall investment of between USD 3.2 billion (EUR 2.9bn) and USD 3.6 billion, according to Renewables Now, quoting a source from the office of Prime Minister Abdelaziz Djerad.

The proposed capacity will be used to cover domestic demand and will be exported to international markets.

Interested parties should be pleased to note for renewable services considered non-strategic, there has been a removal of the “51/49 rule” which capped overseas financial investment in Algerian firms at 49%. However interested parties should note that there are likely to be strong local content requirements.

Farès Koussay El Heni, Managing Partner
Clint Dempsey, Partner

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