ALGIERS (Reuters) - Algerian state electricity company Sonelgaz and Moroccan power utility ONE on Thursday signed a power transit agreement to allow Algeria to export up to 1,000 megawatts (MW) to Spain.

The accord includes the construction on Moroccan territory of a 400 kilovolts power grid link, which is scheduled to be operational by November this year.

Sonelgaz Chief Executive Nouredine Bouterfa said the power grid link would allow the transport of electricity in both directions between Algeria and Spain.

"The new interconnection will allow Algeria to export up to 1000 MW of electricity to Morocco and Spain and import up to 700 MW in case of need," he said after the signing ceremony.

"This agreement will help us to access the Spanish market through the Moroccan network. It's a new step in our cooperation."

Morocco's ONE, which had doubled the capacity of its interconnector to Spain to 400 MW last year, has a Spanish power market trading licence.

Sonelgaz and ONE reached a separate accord on mutual exchange of electricity between the two firms.

The accord stipulates that if one of the two countries lacks electricity because of factors such as heat waves, or technical problems, the other country will help offset the losses of electricity, Bouterfa said.