Sonelgaz has re-tendered three PV projects in Algeria for a total of 420 MW, with sites in Kenadsa, Touggourt and Tamacine, where initial earthworks have begun. The projects were previously awarded to a consortium of the Italian Fimer and the Algerian Cosider.
Algerian utility Sonelgaz has issued another engineering, procurement and construction (EPC) tender for the construction of three PV installations.
The projects include a 120 MW project in Kenadsa (province of Béchar), a 150 MW factory in Touggourt (province of Touggourt) and a 250 MW solar array in Tamacine (province of Touggourt). Bidders can submit bids for one, two or all three lots, with a deadline of February 6.
A consortium of Algeria’s Cosider and Italy’s Fimer previously won the three plots in the 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 a new tender. The consortium’s “solidarity” structure resulted in the entire group being disqualified.
Cosider may bid again and will likely compete with local and international bidders. In previous tenders, Chinese companies secured almost 60% of the 3 GW awarded. The winning bids ranged from €0.54 ($0.56)/W to €0.81/W, with an average price of €0.625/W and estimated levelized energy costs (LCOE) from $0.05/kWh to $0.06 /kWh.
Fimer’s financial problems 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, part of the British McLaren Applied. It has committed €50 million to restructure and stabilize Fimer.
Complicating matters further, in early January it was claimed that Italian firm Maps Energy had won a Sonelgaz contract worth €150 million. Sonelgaz denied this and stated that no such deal existed. Maps Energy also later clarified that it had not been awarded a government contract and was only involved in a subrogation related to Fimer’s internal restructuring.
“However, despite all efforts, conditions and options of the consortium, a contractual replacement was not accepted by the customer [Sonelgaz]which unfortunately led to the interruption of the above-mentioned projects,” the Italian company said.
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