Egypt and Saudi Arabia Prepare to Launch 3,000 MW Electricity Interconnection via the Red Sea

Egypt and the Kingdom of Saudi Arabia are nearing the commercial launch of the electricity interconnection project connecting the two countries' power grids across the Red Sea, with a total cost of $1.8 billion and an exchange capacity of up to 3,000 MW.

This project is considered one of the largest energy infrastructure projects in the Middle East and North Africa region, allowing both countries to exchange surplus electricity instead of relying on additional power plants during peak hours. Egypt aims to make maximum use of the interconnection during high-consumption summer seasons.

The deal holds double strategic importance given Saudi Arabia's efforts to diversify its energy sources under Vision 2030, as it will enable the Kingdom to import electricity generated from Egyptian solar plants during high demand periods, in exchange for exporting Saudi surplus during low-consumption periods.

Regulatory authorities in both countries intend to complete the operational procedures necessary to launch the project soon, while energy companies in the region await the same model to apply it to other interconnection routes within a broader plan to establish an integrated Arab power grid.

What do these terms mean?

**Electrical Interconnection:** A power transmission grid connecting two or more countries, allowing them to exchange electrical energy and distribute loads with greater flexibility than relying on an independent national grid.

**Megawatt (MW):** A unit of measurement for power generation capacity; 3,000 MW is sufficient to supply approximately 2 to 3 million homes with electricity simultaneously.