Genesis Morocco: Algeria Is Aiming High With New FiT For Large-Scale Solar PV

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Genesis Morocco

Project Genesis is a strategic sustainable development framework for Morocco to translate from being a net importer of energy and a country facing water shortage issues, into the number one producer both of clean renewable energy and water in the region.

Wednesday, May 7, 2014    <<Home

Algeria Is Aiming High With New FiT For Large-Scale Solar PV

 Personal Notes:  A very interesting development in the region. We at Genesis Morocco have been closely following the race that started shaping up following the announcement in 2009 of the Moroccan Solar Plan and its stated target of 42% renewables to be reached by 2020. Algeria speedily put in motion a similar plan, spearheaded by Sonelgaz to reach similar targets of 40% renewable energy by 2030.  

However, the comparison in terms of metrics stops there, Morocco is putting aside 12BN $ for its plan, whereas Algeria plans to invest a massive 30BN $ for its own effort. This recent announcement of a FiT that is going to be put in place is bound to further the gap between the two neighbors. Algeria can draw on its deep pockets and a foreign currency reserve that is one of the most important worldwide to fund its FiT, whereas Morocco is bound to rely on international financing, and will find it difficult in the context of already subsidized petroleum products, mainly gasoline, to also propose such a FiT rate. Difficult but not impossible, a feed in tariff remains one of the key ingredient in making renewable energy attractive for foreign investments and falls well in line with Morocco's drive to cut on its reliance to fossil fuels.

At any rate congratulations to Algeria. This announcement undoubtedly makes Algeria an attractive destination for solar energy investments by foreign operators, and it surely decreases the amount of money and effort it will take to reach the 40% target by 2030 versus going it alone. Using finite hydrocarbons reserves to harness the infinite power of the sun and stay in the energy business game makes a whole lot of sense.

Algeria is aiming high with regards to solar energy development, as its recent launch of an impressive feed-in tariff (FiT) program for large-scale PV power plants shows.

The new program — which will offer two separate FiT rates, one for projects 1–5 MW in size, and one for projects over 5 MW in size — is intended to help the country reach its goal of installing 800 MW of solar capacity by the year 2020, and 22,000 MW of renewable energy capacity by 2030.

The projects between 1–5 MW will receive FiT rates of US$0.20/kWh for generation between 1,500–1,574kWh per year, for the first five years. After the first five years, rates will depend on power output — projects with generation above the 1,500–1,574kWh per year will receive less, projects with generation below will receive more.

Projects over 5 MW in size will be treated similarly. They’ll receive $0.16/kWh for generation between 1,500–1,574kWh per year for the first five years — after that, the rates will be higher or lower based on the specific projects power output.

As far as which developers may be interested in taking advantage of the new FiT program, Yingli Solar is a good bet. The company has previously expressed its interest in North Africa.

And, of course, the company already has a number of projects bring developed in the country — just a few months ago, in December, we reported on the winning of 233 MW worth of projects in the country by a consortium including Yingli.

Sourced :

Genesis Morocco, Renewable Energies in Morocco and MENA :