Algeria relaunches 520 MW solar PV tender

• Algerian utility Sonelgaz has reissued an engineering, procurement, and construction (EPC) tender to build three PV plants.

The projects include a 120 MW project in Kenadsa (Béchar province), a 150 MW plant in Touggourt (Touggourt province), and a 250 MW solar array in Tamacine (Touggourt province). Bidders can submit offers for one, two, or all three lots, with a deadline of Feb. 6.

A consortium of Algeria’s Cosider and Italy’s Fimer previously won the three lots in tenders announced in March 2024. The group completed excavation work at the sites, but Fimer failed to meet contractual obligations, including performance bond requirements, prompting the retender. The consortium’s “solidarity” structure left the entire group disqualified.

Cosider can rebid and will likely compete with local and international bidders. In earlier tenders, Chinese companies secured nearly 60% of the awarded 3 GW. Winning bids ranged from €0.54 ($0.56)/W to €0.81/W, with an average price of €0.625/W and an estimated levelized cost of energy (LCOE) of $0.05/kWh to $0.06/kWh.

Fimer’s financial troubles appear to have fueled Algeria’s concerns. National Liberation Front member Ahmed Rebhi criticized Sonelgaz for awarding contracts to a company he described as “bankrupt.”

In November 2024, Fimer was acquired by MA Solar Italy, which is part of Britain’s McLaren Applied. It committed €50 million to restructure and stabilize Fimer.

Complicating matters, media reports in early January claimed that Italian firm Maps Energy had won a €150 million Sonelgaz contract. Sonelgaz denied this, stating that no such deal existed. Maps Energy also later clarified that it was not awarded a government contract and was only involved in a subrogation tied to Fimer’s internal restructuring.

“However, despite all the efforts, conditions and capabilities put in place by the consortium, a contractual substitution was not accepted by the client [Sonelgaz], which unfortunately led to the interruption of the aforementioned projects” said the Italian company.

Author: Gwénaëlle Deboutte

This article was originally published in pv magazine and is republished with permission.