Egypt has taken a significant step towards expanding its electricity export capabilities by installing a transformer in Badr.
This transformer will connect Egypt’s power grid to Saudi Arabia’s, paving the way for electricity distribution to other Asian and European countries.
This development is part of the Egypt-Saudi Arabia electrical interconnection project, initially announced in 2021.
Project Details and Goals
This ambitious $1.8 billion project involves the construction of three high-voltage substations (two in Saudi Arabia and one in Egypt) linked by an extensive network of 1,350 km of overhead lines and 22 km of undersea cables across the Gulf of Aqaba.
Once fully operational in 2026, this project will enable Egypt to directly supply 3,000 megawatts (MW) of electricity to Saudi Arabia.
Electricity Exports: A Growing Revenue Stream
Electricity distribution has emerged as a crucial source of revenue for Egypt. The country already exports power to neighboring nations such as Sudan, Libya, Lebanon, and Jordan. In the previous year, Egypt generated $1.3 billion from its electricity exports.
Tapping into the Asian Market
Despite being one of Africa’s largest electricity producers with a capacity of 209,677 gigawatts, Egypt utilizes only a fraction of this energy domestically.
This surplus production capacity presents an opportunity for Egypt to export electricity to other countries. The country is now setting its sights on the Asian market, where recent energy crises have led to power outages during periods of high demand.
Indirect and Direct Supply to Asia
While Egypt currently supplies electricity indirectly to Asia through resale agreements (for instance, in February, Jordan agreed to sell 40 megawatts of its imported electricity to Iraq), the Egypt-Saudi Arabia interconnection project will enable Egypt to directly enter the Asian market through a central hub that connects to other Asian countries.