APS : Tuesday, 08 January 2019
ALGIERS- Negotiations are underway between Algeria and Spain to export electricity produced by national group Sonelgaz to Spain, Minister of Energy Mustapha Guitouni said Monday.
“We will enter Spain’s (electricity) exchange market. We are in negotiations with them to settle tax issues,” Guitouni said at a ceremony for engagement plan approval, held by the Algerian Company for Electricity and Gas Distribution, a Sonelgaz subsidiary.
“It is high time for Sonelgaz group to develop its exports, as Sonatrach has done,” to “boost its investments and stop relying on the State.”
The development of electricity exports will also allow exploiting all the country’s capabilities for power generation.
“We cannot leave 5,000 to 7,000 megawatts untapped, as it costs a lot of money. We should put them on the market, especially in Europe, Tunisia, Libya and, why not, other countries.”
In 2016, Sonelgaz carried out electricity exports to Spain through the electric interconnection with Morocco, according to a managing executive of Sonelgaz.
The successful experimental exports have led Sonelgaz to decide to enter Spain’s electricity exchange market, a negotiation platform through which the members may make energy purchase and sale orders.
Feasibility studies are underway as part of a Sonelgaz’ comprehensive export strategy, including sales of equipment produced in Algeria, like steam and gas turbines engines.