National Energy Grid
Algeria
GRID SUMMARY
Algeria's electricity demand is growing
at a rapid, 5% annual rate, and will, according to
Sonelgaz, require significant additional capacity
-- possibly 8,000 MW by 2010 -- in coming years (currently,
Algeria has around 6,000 MW of installed power generating
capacity). This likely will require billions of dollars
worth of investments in new generating capacity,
plus transmission and distribution infrastructure
(i.e., lines and sub-stations). In order to accomplish
this, Algeria's government hopes to attract foreign
capital.
In May 2001, Sonatrach and Sonelgaz established
a joint venture -- the Algerian Energy Company (AEC)
-- to export electricity. Among other projects, AEC
is examining the feasibility of establishing a trans-Mediterranean
power link to Italy, with the study expected to be
completed in July 2003. In December 2001, Sonelgaz
signed a joint venture agreement with Italian power
grid manager GRTN on the possibility of constructing
an undersea power cable to export electricity to
Europe via Sardinia or Sicily. In November 2001,
Sonelgaz signed a similar deal with Spain's power
group Red Electrica de Espana to build an underwater
power line between Algeria and Spain. Currently,
Algeria has two links to the Moroccan electricity
grid and supplies over 550 gigawatthours (GWh) of
electricity to Morocco.
Sonatrach has a $107 million contract
with Anadarko and Italy's GE Nuovo Pignone to build
the country's first privately financed natural-gas-fired
power plant at Hassi Berkine. GE Nuovo Pignone, a
subsidiary of General Electric, will also provide
a gas treatment system, liquid fuel gas turbine storage
and services. In July 2002, Sonatrach and Sonelgaz
formed a new, renewable energy joint venture company,
called New Energy Algeria (NEAL). NEAL will look
at development of solar, wind, biomass, and photovoltaic
(PV) energy production. One project reportedly under
consideration is a 120-MW hybrid natural gas/solar
power plant and a wind/diesel/PV facility at Timimoun.
Country Overview
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