The Saudi-Egypt electricity interconnection, one of the region’s largest and most ambitious energy projects, is nearing actual operation after an official Egyptian announcement that work on the Egyptian side has been completed and the project has entered trial operations.
The strategic project, with investments of about $1.8 billion and an exchange capacity of up to 3,000 megawatts, is not only a step toward improving the efficiency of the two countries’ national grids, but also represents a pivotal shift in the regional and international energy landscape.
By connecting the two largest electricity grids in the Arab world, the project lays the initial foundation for a common Arab electricity market and reinforces the two countries’ positions as key hubs for energy trading and transmission between Asia, Africa and Europe.
Egyptian Side Ready
Egyptian Electricity and Renewable Energy Minister Mahmoud Esmat said on Sunday that the project aims to exchange 3,000 MW of electricity along a 1,320-kilometer route.
He noted that the pace of implementation and progress accelerated between July 2024 and June 2025, bringing the project to the trial-operation stage.
Esmat confirmed that all engineering and construction work on the Egyptian side of the interconnection with Saudi Arabia had been completed, with only a small portion of work, technical testing and final preparations remaining on the Saudi side.
Work in Egypt included construction of the 500-kilovolt Badr converter station and the 320-kilometer Badr-Taba overhead line, as well as giant Suez Canal crossing towers rising more than 220 meters to ensure the smooth and safe transmission of electricity ahead of the start of actual exchanges between the two countries.
Esmat said during a Feb. 15 meeting with President Abdel Fattah al-Sisi that the interconnection would play an important role in stabilizing Egypt’s national electricity grid during the summer, when consumption peaks.
Technical Specifications
According to official Egyptian information, the project is one of the region’s largest electricity interconnection projects, with investments estimated at about $1.8 billion and an exchange capacity of up to 3,000 MW.
It consists of three major high-voltage converter stations: one east of Madinah and another in Tabuk, Saudi Arabia, and a third in Badr, east of Cairo.
The stations are connected by overhead lines extending about 1,350 kilometers, in addition to submarine cables crossing the Gulf of Aqaba.
Strategic Shift in Regional Energy Security
Khaled El-Shafei, an economist and head of the Capital Center for Economic Studies, said the interconnection represents a strategic shift in the region’s energy landscape and security.
He noted that the project strengthens energy security in both countries with a capacity of up to 3,000 MW through high-voltage direct-current lines extending 1,320 kilometers, equivalent to about 8 to 10 percent of Egypt’s total operating reserve capacity.
El-Shafei underlined that this would support the stability of the national grid without the need to operate additional generating plants with high operating costs. It would also reduce carbon emissions by millions of tons annually through optimal use of the two countries’ renewable-energy mix.
He continued that once the interconnection becomes fully operational, it would generate substantial economic savings in fossil-fuel consumption and power-plant maintenance costs.
Gateway to Europe
Esmat also discussed existing electricity interconnection projects with neighboring countries, including Sudan, Libya and Jordan, saying studies for interconnection projects with Greece and Italy are currently being finalized, which would make Egypt a bridge to Europe, according to a ministry statement.
On the regional level, El-Shafei said the Saudi-Egypt project’s entry into the operational phase is the essence for establishing a common Arab electricity market, as it connects the two largest electricity grids in the Arab region, which together account for more than 60 percent of total electricity generated in the Arab world.
The development also opens broad prospects for Egypt to capitalize on its unique geographical position as a key regional energy-trading hub. It would allow the Egyptian grid to manage a multilateral interconnection system extending to the Arab east through Saudi Arabia and Jordan, the Maghreb through Libya, and Africa through the existing interconnection with Sudan.
Egypt would also serve as a future gateway to Europe through interconnection projects being studied and implemented with Greece, Cyprus and Italy to transmit up to 2,000 MW, boosting direct economic returns and making the region a key pillar for regional and international energy stability and sustainability.
