Saudi-Egypt HVDC Interconnection Project Nears Completion, Achieving Major Milestones

Historic Interconnection Project Reaches Advanced Stage

The ambitious Saudi-Egypt High Voltage Direct Current (HVDC) interconnection project, a pioneering large-scale intercontinental power link, has achieved significant operational milestones, marking a crucial step towards its full commissioning. This landmark initiative, designed to bolster cross-border energy exchange and regional grid stability, is now reported to be 95% complete.

The project, with an estimated cost of $1.8 billion, represents the first large-scale HVDC interconnection in the Middle East and North Africa. Its primary goal is to enable the exchange of up to 3,000 megawatts (MW) of electricity between the two nations, leveraging differences in peak demand times and optimizing generation resources.

Project Scope and Technical Specifications

The comprehensive interconnection system spans approximately 1,350 kilometers, comprising a network of overhead transmission lines and subsea cables. Specifically, it includes around 1,300 km of land cables (965 km in Saudi Arabia and 335 km in Egypt) and 22-23 km of submarine cables traversing the Gulf of Aqaba. The system operates at a voltage of ±500 kV.

Key infrastructure components include three major high-voltage substations: Badr in Egypt, and Madinah East and Tabuk in Saudi Arabia. Construction has been finalized on the Badr and Taba 2 substations, along with the 500-kV overhead transmission line connecting them, extending roughly 320 kilometers. Final testing is currently underway at the 500 kV Badr converter station in Egypt.

Key Players and Anticipated Operation

A consortium of international and local entities has been instrumental in the project's development. Orascom Construction, in collaboration with Hitachi Energy, has announced significant progress, with Orascom successfully completing the installation of major project equipment and providing essential supplies for system integration within Egypt. Hitachi Energy is leading the implementation of the HVDC converter stations, often in partnership with local contractors, while AtkinsRéalis provides project management and engineering services.

The commissioning of Pole I, enabling a 1,500 MW bidirectional power exchange, is currently underway. The first phase of the project is anticipated to be operational by late 2025 or early 2026, with full operational capacity of 3,000 MW expected by mid-2025 or April 2026, according to various reports.

Strategic Impact on Regional Energy Landscape

This interconnection is poised to play a pivotal role in achieving the energy transition goals of both nations. Saudi Arabia aims to increase its use of natural gas and renewables to approximately 50% by 2030, while Egypt targets 42% of its power generation from renewable sources by 2035. The project will facilitate the exchange of renewable energy, supporting a carbon-neutral future and enhancing the efficiency of transmission grids.

Beyond immediate benefits, the Saudi-Egypt HVDC link is seen as a foundational element for broader regional energy cooperation, potentially paving the way for greater power system integration across the Middle East and North Africa, and even future links between Africa, Asia, and Europe.