Egypt-Saudi power grid to offset shortages

The electricity exchange pact signed yesterday by Saudi Arabia and Egypt will help the two countries meet shortages in power supply, according to Water and Electricity Minister Abdullah Al-Hussayen.
Speaking in Riyadh after signing the agreement with his Egyptian counterpart Ahmed Mustafa Imam, he said investment on the SR 6 billion project could get returns of up to 30 percent.
“Establishing power-sharing projects with neighboring countries is one of the best ways to ensure adequate supply of electricity, especially at peak times,” Al-Hussayen said.
This is one of the important projects for establishing a power grid between Arab countries. Egypt has already linked its power network with Jordan and Syria.
“Many countries in the Gulf and Arab world are looking at this project with deep interest as it would lead to linking 14 countries with a power grid in the near future,” he said.
“Feasibility studies have showed the project’s benefits. Egypt has one of the best electricity power supply systems in the Arab world,” Al-Hussayen said.
He said the sharing of reserve power would contribute to reducing further investment in electricity generators in both countries. “Peak time in Saudi Arabia occurs in the noon and afternoon while in Egypt it starts after sunset,” he added.
He said both countries would be able to exchange 3,000 MW during this peak period, which will help them save billions of riyals that would have been spent on building power plants.
“We can also share electricity in non-peak hours at international prices,” he said. The project can be used to support Arab telecom networks and information sharing systems.
“If we use this system just for sharing reserve electricity we’ll get a return of 13 percent on investment and the investment can be regained within eight years,” Al-Hussayen said.
The Egyptian minister of electricity and energy said the power grid would help trade surplus electricity and make optimum use of available resources in the Arab world. “Egypt has spent 43 billion pounds on electricity and 99 percent of its population now enjoys electricity.”
Speaking about the Arab power grid project, Imam said it would connect Syria and Lebanon, Egypt and Libya with Maghreb countries, Libya and Tunisia and Egypt, Sudan and Ethiopia. It will also link the Arab world with Europe.