Egypt, Saudi Arabia agree on joint arrangements to support electrical interconnection project

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Arab Finance: Egypt and Saudi Arabia have reached key agreements to advance the electrical interconnection project, with both sides committing to joint arrangements to ensure its completion before next summer, as per a statement.

This development follows a productive meeting between Egyptian officials and Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz Al Saud.

The agreed arrangements include forming joint committees for regular communication and follow-up on the project.

Both countries aim to boost private investments in new and renewable energy projects and to facilitate the exchange of technical expertise and modern technologies in electricity generation, transmission, and distribution.

Egypt and Saudi Arabia have so far implemented 60% of their joint electrical interconnection project, with the first phase of operation to kick off in July 2025 at a cost of $1.8 billion.

This project aims to enhance electricity export prospects to Asia and Europe, improve connectivity with neighboring countries, and help mitigate Egypt's ongoing electricity crisis.

Prime Minister Mostafa Madbouly and Egyptian Minister of Electricity and Renewable Energy Mahmoud Esmat, reviewed these agreements during a recent meeting.

Esmat also shared updates on his visit to Saudi Arabia with Egyptian Minister of Petroleum and Mineral Resources Karim Badawy where they secured several important deals.

Additionally, Esmat discussed ongoing renewable energy projects in Egypt, such as solar and wind energy initiatives, which are set to enhance the electrical network’s capacity.