TUNISIA - Maghreb/Europe Power Links.

Tunisia, like fellow Maghreb countries, is being linked to Europe's power grid. The last section of this link, a connection between Tunisia and Libya through a 700 km high voltage line, is to be completed by end-2004. Tunisia is already linked to Algeria's power grid.

The link to Europe has been part of a trans-Maghreb project connecting the power grids of Egypt, Libya, Tunisia, Algeria, Morocco and Mauritania with those of Spain and other EU countries. Tunisia is also to be linked to Europe via Turkey - through Egypt, Jordan and Syria.

Tunisia's power grid is in need of upgrading both to meet domestic demand as well as to increase reliability as part of its ongoing integration into the EU energy sector. By end-2004 an integrated North African power grid will stretch from Morocco to Egypt.

Regional grid inter-connections allow Tunisia and the other countries to maximise use and minimise costs and to sell one's surplus power to the neighbours. As the consumer is constantly purchasing the lowest-cost electricity available on the regional grid, the transfers allow for direct savings. According to the Kuwait-based Arab Fund for Economic and Social Development (AFESD), which has partly financed the trans-Maghreb project, direct cost savings on the Mediterranean ring in 2001 totalled $168m.

Grid building also allows countries to cut their investment in installed power generating capacity by reducing the need for both spinning (used to cover small trips) and cold reserves, which are fired up when maintenance work is underway. As most reserve planning is based on the principle that peak demand can be met with the network's two largest units offline, or with a 15-30% redundancy margin, the potential savings on infrastructure investment can be huge.

Grids allow for reduced reserve capacity. The load curve is shaved and spinning reserves are better used as tripping-induced needs are drawn from other grid capacities. (Some $6 bn have been retained through the Mediterranean ring, and the project is nearing completion).

There will be marine cable links to Italy and Spain from a big IPP being built in Algeria. To be run by Algerian Energy Co. (AEC), this is a partnership between Algeria's NOC Sonatrach and state power utility Sonelgaz.