Italian inverter maker Fimer and Algerian electronic components producer Entreprise Nationale des Industries Electroniques (ENIE) have created a joint venture to set up an inverter factory at an undisclosed location in Algeria.
The announcement was given yesterday by the Italian embassy in Algeria, which said on Twitter the agreement represents for the two countries a first step in jointly developing renewable energies. No more details on the deal were disclosed.
On the same day, Italian oil and energy company Eni and Algeria’s state-owned oil and gas provider Sonatrach signed a new oil contract related to the onshore Berkine basin area operated by Eni itself and a memorandum of understanding to cooperate on unspecified initiatives in the energy transition.
“The agreement provides for the assessment of joint opportunities in the fields of renewables, hydrogen, the capture, use and storage of CO2, bio-refining, and many other initiatives in line with the companies’ respective decarbonization objectives,” the two companies said in a joint statement.
Algeria‘s energy ministry is expected to launch soon a tender for the deployment of 1 GW of solar capacity. The Algerian Renewable Energy Company (SHAEMS), which is jointly owned by Sonatrach and power utility Sonelgaz, will be allowed to take a share of up to 25% in the special purpose vehicles that will own the winning projects.
Local content requirements will be included in the procurement exercise, but they will not be mandatory for the first tender of the series, as the capacity of the local industry will only just exceed 1 GW by the end of 2022. Solar developers that use locally manufactured PV components may receive additional bonuses on top of the granted fixed tariff.