Currency Risk is The Hidden Solar Project Deal Breaker

By [email protected] Algeria will soon issue a massive 4 gigawatt tender for solar projects, but it can expect to see less interest from international developers than from nations like Saudi Arabia.

Algeria can also expect that the prices developers bid to win contracts will be higher than in Saudi Arabia. The reason? In large part, it has to do with the impact of currency depreciation. In Algeria, power purchase agreements (PPAs) are denominated in Dinars, a currency that has depreciated annually by an average of almost 12 percent since 2014. Saudi Arabia and other Gulf Cooperation Council Countries (GCC), like the United Arab

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