The implementation of the $1.8 billion Egypt-Saudi Arabia electricity interconnection project advances at 95% completion. The project’s first phase is expected to be operational by the end of the year or early 2026. The work includes the construction of 862 towers. It also entails the installation of 330 kilometer extra-high-voltage cables and power lines within Egypt. Reports have noted that the contractors are currently conducting final testing in preparation for the project’s launch. According to ASSO Group, the project features a ±500kV, 3,000 megawatts (MW) HVDC transmission system spanning the northern part of the Red Sea’s Gulf of Aqaba.
It comprises 23 kilometres (km) of submarine cables and 1,300km of land cables. Once complete, it will connect Cairo’s Badr Substation to Madinah East Substation in Saudi Arabia, with a tap at Tabuk. Launched in 2012, the Saudi-Egyptian electricity interconnection project was estimated to cost nearly $1.8 billion. Interconnection projects such as the Egypt-Libya electricity interconnection line highlight Egypt’s commitment in bolstering its energy sector.
The Scope of Implementation on the Egypt-Saudi Arabia Electricity Interconnection Project
In February, Egypt’s Prime Minister Mostafa Madbouly had noted that the Egypt-Saudi Arabia Electricity interconnection project would be activated in June. Moreover, he had added that the project would have a capacity of 1,500 MW once complete. Once the first phase is complete, the second phase is expected to follow soon after. The interconnection between the two grids will bring the total capacity to almost 3,000 MW on completion. AtkinsRéalis is delivering Project Management Office (PMO) and engineering design review services.
On the other hand, Hitachi Energy is implementing the project in partnership with local contractors. The project is the first of its kind in the Middle East in terms of size and technology, the prime minister’s office said in a statement. The overall project is of great importance as it will enhance the efficiency and stability of the two countries’ electricity grids. Furthermore, it will allow them to take advantage of available generation capacity during peak load periods
In the Saudi-Egyptian interconnection project, Egypt and Saudi Arabia have partnered to ensure the link electricity networks between them. The project is expected to be completed in mid-2025 based on official quotes. Phase 1 of the project will cost around $1.8 billion and transfer 1,500 megawatts (MW) of electricity, said Mansour Abdel Ghani, a spokesman for Egypt’s Electricity and Renewable Energy Ministry. “This is a strategic project and an historical step for cooperation between the two countries,” Abdel Ghani noted in a review. He also noted on the ambition of the project as he stated that, “This giant project will largely contribute to achieving sustainable development targets in Egypt…it is progressing according to set timetables.” The two countries have recently agreed to form a joint committee to work on ensuring the project’s implementation. According to Ghani, this will remove all financial, technical, and administrative obstacles for the project.
The State of Affairs Regarding the Saudi-Egyptian Interconnection Project
The Saudi-Egyptian interconnection project is one that is fundamental as it involves the exchange of a significant amount of energy. The project is expected to facilitate in the transfer of about 3,000 MW of electricity between the two nations. This includes the construction of three large high-loads substations. These stations will be located in the Western Saudi Medina city of Tabuk in Northwest Saudi Arabia and in Badr City of East Cairo. “A consortium of three companies are working on this project…we can say nearly 60 percent of the project has been completed,” he added.
In 2021, the project was awarded to a consortium led by Hitachi Energy and comprising Saudi Services for Electro Mechanic Works (SSEM) and Orascom Construction. Funding for the project is already on course as Egypt has secured $600 million from various funding agencies. Other investors such as Standard Chartered Bank and Sumitomo Mitsui Banking Corporation announced an extra $566.4 million. Through these funds, the Saudi Electricity Company aims to ensure a fast undertaking on the project.
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The Significance of the Multimillion-Dollar Project
The significance of the Saudi-Egyptian interconnection project is of unprecedented significance based on its scale. The Arab world is anxious as it will be home to HVDC conversion stations. Two of the three stations in Tabuk and Badr City will ensure seamless flow of power. Furthermore, they will ensure that this flow extends to 1.35 km route through overhead power lines. It also includes a 22km subsea cable in the Red Sea. A surplus in generation between the two nations could be exported to neighboring countries. It is expected that this can be managed through other interconnection projects to ensure connectivity.
Furthermore, the export in power could see these nations earn revenue from such endeavors. The funds could be channeled in other projects that are of importance in the nation, such as Saudi Arabia’s NEOM. NEOM is a project that is steadily taking shape and funding is an aspect that could greatly help in its implementation. The Saudi-Egypt interconnection project could also improve the livelihoods of the residents in both nations.
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