Power Grid

The electricity interconnection project between Algeria and Italy has taken a significant step forward, with both countries eager to accelerate its implementation. On July 31, 2024, Algeria’s Sonatrach and Sonelgaz signed a charter of understanding with the Italian company Eni. This agreement facilitates joint feasibility studies for the project, which involves laying a marine power line to enable electricity exchange and integration with the Italian and European markets.

This interconnection project, set to be the first of its kind, aims to create a strategic energy link between North Africa and Europe. It aligns with the strategic charters signed on January 23, 2023, which focus on enhancing energy cooperation and addressing energy transition and decarbonization efforts. The new charter will support North Africa’s goal of becoming a major energy supplier to Europe, including in the electricity sector.

The feasibility studies under the new agreement will cover various aspects, including technical, environmental, legal, economic, financial, and market assessments. These studies will outline a detailed timeline for the project from design through to operation and entry into service. The interconnection line will help European countries secure alternative energy supplies, especially in light of reduced Russian energy imports following the invasion of Ukraine in February 2022.

The collaboration between Sonatrach, Sonelgaz, and Eni marks a crucial advancement in establishing North Africa as a key exporter of green energy to Europe. Algeria's recent investments in its electricity sector have resulted in a production surplus, positioning it as a significant electricity producer on the continent. Negotiations for the interconnection began in 2022, with the project expected to play a vital role in meeting Europe’s energy needs.