150 MW Hybrid Solar-Gas Project at Hassi R’mel

NEAL, a company set up by SONOTRACH, SONELGAZ and SIM to carry out projects that make use of renewable energy, has invited expressions of interest in a hybrid solar-gas project that will be set up at Hassi R’mel.

The project will adjoin the existing SONELGAZ power station at TILGHEMT.

The complex will comprise a 130 MW combined cycle, with a gas turbine power of the order of 80 MW and a 75 MW steam turbine.

A 25 MW solar field, requiring a surface of around 180.000 m² of parabolic mirrors, will be the source of non-fossil energy.

Successful management of this technology will enable costs to be reduced and solar energy to become a supplementary source to hydrocarbons for future generations as well as for exporting electricity.

NEAL has designed the first project for which an invitation to tender is expected to be launched in September 2004.

Investments of nearly 140 million dollars will be contributed by the German investment bank KFW in preferential rate loans and the European Investment Bank (EIB).

The BEA will syndicate with the EIB the portion in dinars.

Capital interests would see a BEA-NEAL partnership guaranteeing one-third of the capital, beyond which the remainder would be guaranteed by the foreign investor at a minimum of 51% and the EIB with a profit-sharing loan (QUASI EQUITY)

The legislative arrangements, which have reformed and freed up the electricity market with the law on electricity and the distribution of gas as well as the decree specifically relating to renewable energy (diversification costs), has made the country a model of its kind.

The invitation for expressions of interest launched on 08 June 2004 has enabled  nearly 10 companies to declare their interest:

CME and General Electric (USA), ACS COBRA (Spain), LAVALLIN (Canada), SIEMENS and Solar Millennium (Germany), MITSUI-JGC (Japan), ALSTOM (France), BLACK & VEATCH (Great Britain) and BRC (Algeria).

The data-rooms have been open from 12 June 2004.

The invitation to tender is expected in September 2004, which will lead to the opening of bids and the awarding of the BUILD OWN OPERATE contract in December 2004.

The legislative arrangements that first and foremost have controlled the purchase of electricity with appropriate incentive measures, will underpin the  project financially.

Taking that into account, the project is due to start in September 2005.