Egypt is planning a mid-April tender for the construction of a power grid linking itself to Saudi Arabia, says Egyptian Electricity and Energy Minister Hassan Younes.
Saudi Electricity Co. and Egyptian Electricity Holding Co. will finance, own, operate and maintain the section of grid in their respective countries, splitting the cost of the underwater segment, said a statement on the ministry's website.
The project intends to take advantage of the difference in both countries' peak hour electrical demand, with Saudi exporting to Egypt in the evening and Egypt exporting to Saudi in the morning and afternoon.
The 1,300km cable will have a 3,000 Megawatt capacity and aim to exchange electricity through direct current lines. The project is to cost US$1.5billion, according to estimates, says Beltone Financial.
Younes said work could begin by January 2012 with operations underway in early 2015.