February 18 (Renewables Now) – Spain and Morocco have signed a memorandum of understanding (MoU) that will result in the third interconnection cable between the two countries, Spanish grid operator Red Electrica de Espana (REE) informed last week.
Similar to the previous two, this third 400-kV link will have a technical capacity of 700 MW. The combined commercial capacity of the three links will amount to 1,500 MW.
REE and its Moroccan peer L'Office National de l'Electricite et de l'Eau Potable (ONEE) will be in charge of the study and analysis of the project.
The project requires an investment of EUR 150 million (USD 169.6m) shared 50/50 between Spain and Morocco.
The interconnection could bring in revenues of EUR 140 million to the Spanish electricity system, gained from tolls and congestion rent since an auction system for the management of the exchange capacity could be implemented, REE said.
The commissioning is expected to take place before 2026.
The two countries have also signed a second collaboration agreement that is aimed at establishing a strategic partnership on energy with objectives focused on the integration of networks and the energy markets, development of renewable energy and energy efficiency.
(EUR 1.0 = USD 1.13)