Egypt will launch the final trial phase of its electricity interconnection project with Saudi Arabia next week, signaling the near-completion of a long-delayed Gulf-backed venture that has drawn scrutiny over its geopolitical and economic implications.
The trial phase will last 10–14 days, during which final system tests will be conducted before the project becomes commercially operational, according to a source at the Egyptian Electricity Transmission Company, which operates under the Ministry of Electricity.
The project aims to connect Egypt’s Badr substation near Cairo to Saudi Arabia’s Tabuk and Medina stations. It has reached 99% completion, the source told Al Manassa. The first phase will transmit 1,500 megawatts of electricity—half of the planned 3,000 megawatt capacity to be delivered across two phases.
To stabilize power flows between the countries, operators have recently added capacity boosters to the grid. The trial comes after years of diplomatic inertia, shifting priorities, and financing disputes since the original 2013 deal.
That agreement, initially estimated at 6 billion Saudi riyals (about $1.6 billion), was part of a broader influx of Gulf investment into Egypt’s infrastructure during a period of severe domestic economic hardship.
The source noted that Egypt has a seasonal electricity surplus—producing 10,000 to 11,000 megawatts above daily need in winter. These excesses feed the national grid in summer but can be traded regionally during off-peak periods.
The government promotes the project as a step toward Egypt becoming a regional energy hub—a narrative frequently echoed by Gulf allies, yet rarely questioned for its impact on national energy sovereignty.
The source confirmed that pricing will be linked to Brent Crude benchmarks, with minor adjustments in future phases. This mirrors the pricing structure of the controversial Egypt–Israel gas deal, approved after fraught negotiations last week.
A 2023 report by the UN Economic and Social Commission for Western Asia (ESCWA) acknowledged that electricity interconnection can reduce transmission losses and attract renewable energy investment. Yet, it also warned that such infrastructure projects often prioritize commercial exchange over public accountability and equitable access.
