Brussels, 03/07/2013 (Agence Europe) - President of the European Commission José Manuel Barroso will sign a memorandum of understanding on energy during his visit to Algiers on Friday and Saturday (see EUROPE 10879). The memorandum of understanding was formally approved by the European Council on 7 June (see EUROPE 10863). The overall goal of Barroso's visit - the first since he took office as president of the Commission - is to step up cooperation on energy, as well as to step up economic, technical and financial cooperation, with Algeria.
Nearly two years ago Algeria lifted a fair number of its previous reservations regarding cooperation with the EU. Since then, it has been involved in the development of an action plan - to be finished by the end of the year - as part of the neighbourhood policy, and it has been involved in the implementation of a policy to upgrade its administration, economy and businesses in order to help them stand up to competition. Algeria's main concern is reportedly to increase its ability to attract foreign investment (which is perceived as hesitant) especially in the energy sector. Added to foreign investors' reluctance about Algerian bureaucracy and administration is their fear of threats to their security in a country which recently experienced a serious siege on one of its main gas fields (at In Amenas).
Algeria asserts it resolve - through various voices - to break with its practices of the past. It is opening up to the EU and is involved a little more in Euro-Mediterranean cooperation. It is also interested in setting up training programmes and in assistance from experts.
Algeria is especially hoping for the development of solar and renewable energy production from the strategic plan (as it is named in Algiers). There is ongoing debate about whether or not to develop shale gas extraction. The concern - both for Algeria and for Morocco (which has installed an extremely large production installation in Ouarzazate) - is to have guaranteed access to the European electricity market. This seems unlikely given the weakness of electricity interconnections between member states and the weak remuneration of green energy. For the same reasons, the Desertec consortium (Dii) has announced that is renouncing the project to export solar electricity produced in the North African area to the EU market. (FB/transl.fl)