Algeria’s Energy Minister, Salah Khebri, has recently announced its intention to procure the development of 4,500 MW of renewable energy projects by 2020. The present drive to increase Algeria’s energy capacity is part of a medium-term strategy to generate 25% of its energy from renewable energy sources by 2030 and will require the deployment of an additional 22,000 MW of additional capacity from renewable energy projects.
To this end, SONAGEL, Algeria’s national regulator for electricity and gas, is overseeing the commissioning of 400 MW of renewable energy projects, including 84 MW of projects which are presently operational, with the remaining projects expected to reach commercial operations by July.
Algeria has implemented a regulatory framework intended to facilitate private sector investment in its energy programmes and Algerian provincial authorities are also making land available to developers seeking a site to install their projects.
Whilst it is expected that Algeria will soon formally launch an Independent Power Producer programme to enable it to meet its ambitious targets, developers should note that reform to the existing regulatory framework and proposed power purchase agreement will be required to facilitate the implementation of projects, project financing and foreign investment.