Cegelec selected for Algeria's first wind farm

ALGERIA: Algeria's national electricity and gas company, Sonelgaz, has provisionally awarded a contract to build the country's first industrial-scale wind power project to the French industrial group Cegelec and its Algerian subsidiary.

16 December 2010

The wind farm is set to be built at Adrar in Algeria's southern desert

Cegelec will build the 10MW facility near Adrar, in the southern desert. The company's strong presence in Algeria also played an important role, with the authorities emphasising local participation and technology transfer.

Cegelec's offer of DZD2.22 billion (€22 million) plus DZD7.257/kWh (€0.0718) beat higher bids from Spain's Comsa Emte, a Chinese consortium of CECIC and CGC, and Vergnet of France.

The Adrar project has had a checkered history. Originally slated for Tindouf, near the Moroccan border, it was moved because of the army's concerns over potential interference with its radars.

The first tender call, in 2007, solicited just one bid. The second saw Vergnet selected last January with a price of DZD3.05 billion (€24 million at the time) plus DZD9.62/kWh (€0.094).

However, the authorities then decided the price was "excessive" and relaunched the tender in March. Cegelec now has two years in which to complete the facility.