Egypt is set to begin implementing its electricity interconnection project with Greece before the end of the second half of this year, according to government sources.
The project, classified as a priority initiative within the European Union, is expected to receive a €1 billion grant and concessional financing.
Sources told Al Arabiya Business that three European financial institutions have expressed interest in funding the joint Egypt-Greece electricity transmission project. Further discussions on the financing arrangements are scheduled for next month.
During a meeting last week with Egyptian Minister of Electricity Mahmoud Esmat, representatives from the Greek energy group Copelouzos presented their proposed mechanisms for the project. They also recommended that the exchanged electricity be generated from renewable energy sources.
The Egypt-Greece electricity interconnection is part of a broader regional effort to enhance energy security and integrate renewable energy sources into the power grids of Europe and the Mediterranean. The project aims to establish a subsea power link between the two countries, allowing Egypt to export surplus electricity—primarily from solar and wind energy—to Greece and the wider European market.
This initiative aligns with the EU’s strategy to diversify its energy sources and reduce dependence on fossil fuels, particularly in light of recent geopolitical challenges affecting energy supplies. Egypt, with its abundant renewable energy resources and strategic location, is positioning itself as a key electricity hub between Africa, the Middle East, and Europe.
In recent years, Egypt has ramped up investments in renewable energy projects, including the Benban Solar Park—one of the largest in the world—and major wind farms in the Gulf of Suez. The interconnection with Greece would mark a significant step in leveraging these resources to meet both regional and international energy demands.
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