Algeria introduces flexible FIT

With 10GW of renewable energy to be installed in the next 15 years, Algeria has introduced a feed-in tariff (FIT) to encourage foreign investment.

PV installations greater than 1MW will be eligible for an FIT to be paid under a 20-year power-purchase agreement (PPA), which will be divided into two phases.

The first phase, covering the first five years of the PPA; and the second phase, for the other 15 years, will allow authorities to revise the paid tariff.

For installations of 1-5MW, the tariff will be $0.20 per kWh, which can increase to $0.25 or go down to $0.15 in phase two.

For installations of more than 5MW, the tariff will be $0.16/kWh in phase one, and $0.20 or $0.12 in phase two.

The 233MW PV plants given to Yingli Solar last year, and the 85MW allocated to Belectric - currently under construction - were awarded as EPC contractors, and the completed projects will be owned by SKTM, a renewables unit of state-owned gas company Sonelgaz.

But 135MW should be allocated over the next few months under the new FIT.

''Over the next few years, 60 solar projects will be constructed with a total capacity of 2GW, with the global cost of the programme expected to reach $60m-100m,'' says Adel Baba-Aissa, director of RnE Partner, an advisory firm specialising in renewables projects in the Middle East and Africa.

''The renewable-energy programme in Algeria consists of installing 22GW by 2030, with up to 500MW to be installed by the end of 2015.'