Egypt-Saudi power grid link-up to cost US$1.5bn

The first phase of the power link between Egypt and Saudi Arabia will take place in 2015.

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A project aimed at linking the power grids of electricity-hungry Egypt and Saudi Arabia to help meet peak-time demand is expected to cost about US$1.5 billion, according to Egyptian Electricity Ministry Undersecretary Aktham Abul Ela.

An international tender for work on the project is scheduled for January 2011.

Egypt will send Saudi Arabia electricity through the connection in the afternoons, and Saudi Arabia will send electricity to Egypt in the evenings, taking advantage of the difference in the countries’ peak-use hours.

The two countries would split the cost of the project – which aims to exchange 3,000MW of electricity between the countries through direct current electrical lines – based on the amount of work on their land.

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“Every country will pay the cost of this project on their land, with Egypt at about 450 km and the rest in Saudi Arabia,” said Abul Ela.

The project is expected to include 1,300 km of power lines in total. Abu Ela said pricing was not set yet, but it was possible the two countries would not need to pay one another because they would exchange equal amounts of electricity.

Saudi deputy electricity minister Saleh Alawaji said in March that the first phase of the power link between Egypt and Saudi Arabia would take place in 2015.

Demand for power in top oil exporter Saudi Arabia grew last year by more than 8%, and is expected to exceed 60,000 MW by 2020.