Fitch: Egypt-Saudi Arabia Electricity Interconnection Project Makes Significant Progress

Fitch highlighted that this interconnection is not only critical to the energy strategies of Egypt and Saudi Arabia but also serves as a catalyst for regional energy integration in the Middle East and North Africa (MENA) region. 

By linking Egypt’s power grid with Saudi Arabia’s, the project supports the development of a more interconnected and resilient regional energy market, helping both countries achieve greater energy efficiency and economic growth.

The Egyptian government has underscored that the interconnection project strengthens national energy security and enables the export of Egyptian electricity to regional markets, providing new revenue streams. It also consolidates Egypt’s position as a key energy hub in the region, reinforcing its role in regional energy trade and further bolstering its economic stability.

The Egypt-Saudi Arabia electricity interconnection project has achieved significant progress, with the first phase on the Egyptian side reaching 95.8% completion as of October 1, 2023. 

This ambitious project marks a pivotal development in regional energy cooperation between the two nations, aiming to enhance energy security, facilitate electricity exports, and open up new opportunities for cross-border energy trade.

Signed in October 2021, the project connects Badr City in Egypt to Medina in Saudi Arabia, passing through Tabuk in Saudi Arabia. The initial phase will have a transmission capacity of 1,500 megawatts (MW), with plans to expand this to 3,000 MW in the second phase. This expanded capacity will enable both nations to optimize energy resources, synchronize power grids, and improve responses to peak electricity demand.

The project’s long-term objectives go beyond just power transmission, aiming to serve as a cornerstone for sustainable energy development in the region. By enhancing electricity trade, it not only boosts the energy capacity of both countries but also sets a precedent for future cross-border energy initiatives.

It serves as a stepping stone for greater collaboration and synergy in energy production and distribution across the MENA region, potentially linking with other regional energy markets in the future.