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 Multibillion-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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