{"id":588109,"date":"2023-06-06T00:00:00","date_gmt":"2023-06-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/a-guide-to-our-planned-electricity-link-ups-with-europe\/"},"modified":"2023-06-06T00:00:00","modified_gmt":"2023-06-06T00:00:00","slug":"a-guide-to-our-planned-electricity-link-ups-with-europe","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/a-guide-to-our-planned-electricity-link-ups-with-europe\/","title":{"rendered":"A guide to our planned electricity link-ups with Europe"},"content":{"rendered":"

<\/span>Enterprise Explains: Electricity Interconnectors.<\/span> Projects to link our power grids to Europe <\/span>appear to have picked up pace in recent months as the EU steps up its search for new energy sources in response to Russia\u2019s invasion of Ukraine. So how do electricity interconnectors work and why do we have so many planned projects in the pipeline? <\/span><\/p>\n

Electricity interconnectors are high-voltage direct current cables<\/span> that carry surplus electricity from one territory to another, allowing countries to share and trade energy. These cables run subsea, underground, or overhead. Because they can draw from renewable energy sources such as wind and solar farms, they offer countries a means to integrate more renewables into their energy markets while achieving energy security. <\/span><\/p>\n

The war in Ukraine has prompted the EU to wean itself off Russian oil and gas<\/span>, both as a punitive measure against Moscow and as a safeguard against what it calls a \u201c<\/span>weaponization<\/a><\/span>\u201d<\/span> of energy supplies. Prior to the war, the EU secured 40% of its natural gas and 27% of its total oil <\/span>imports<\/a><\/span> from Russia for roughly EUR 400 bn a year. The European Commission in May 2022 <\/span>unveiled<\/a><\/span>RePowerEU<\/a><\/span>, an EUR 210 bn plan aimed at eliminating the EU\u2019s reliance on Russian fossil fuels by the end of the decade. The three-piece plan seeks to diversify energy sources, accelere the green transition, and curb energy consumption. In its pursuit of energy security, the EU has also set an electricity interconnection <\/span>target<\/a><\/span> of at least 15% by 2030, meaning that each EU country needs to have electricity cables that allow at least 15% of the electricity it produces to be transmitted neighboring countries. <\/span><\/p>\n

This is where Omm El Donia comes into play: <\/span>Egypt is in close proximity to Europe, has huge potential for solar and wind power generation, and already generates a large <\/span>surplus<\/a><\/span> of electricity, potentially making it an important partner for the EU. Our grid is currently linked with Jordan, Palestine, Libya, and most recently Sudan, and will link up with Saudi via a <\/span>3-GW interconnection<\/a><\/span> in 2025.<\/span><\/p>\n

There are five proposed Egypt-Europe interconnectors in the pipeline.<\/span> Below is a rundown of what they are and where they stand:<\/span><\/p>\n

#1 -<\/span>The 3-GW link between Egypt and Italy <\/span>that was proposed by Norwegian renewable energy developer Scatec in <\/span>February<\/a><\/span> is the latest in the pipeline.<\/span>The project, which would allow Egypt to export renewable energy to Europe, would be backed financially by the Norwegian government. Cabinet in <\/span>May<\/a><\/span> approved the signing of an MoU with Scatec to study the project.<\/span><\/p>\n

#2 - Another 3-GW <\/span>Egypt-Italy interconnector<\/a><\/span> was proposed by Italy in <\/span>January<\/a><\/span>. Italy has reportedly proposed signing an MoU to begin conducting a feasibility study for the USD 3.5 bn project. The proposal commits Italy to covering the project\u2019s costs by securing funding from Italian banks and European financing agencies. Egypt and Italy are reportedly in talks to bring a third country into the project to help bridge the distance between the two countries. <\/span><\/p>\n

#3<\/span>-<\/span>The <\/span>EuroAfrica Interconnector<\/a><\/span>, which Egypt has been planning since 2018,<\/span>is a USD 4 bn project aimed at linking up the electricity grids of Egypt, Cyprus, and Greece through a 2-GW subsea link. Egypt and Greece are in the process of <\/span>selecting a consultant<\/a><\/span> to conduct feasibility studies for the interconnector and are expected to sign agreements with a consultant some time in 2H 2023.<\/span><\/p>\n

#4 <\/span>- <\/span>The <\/span>Greece-Egypt interconnector (GREGY)<\/a><\/span> is a EUR 3.5 bn, 3-GW link that will transmit solely renewable energy generated in Egypt. It will run almost 1.5k km from Wadi El Natroun directly across the Mediterranean to mainland Greece. <\/span>Bloomberg<\/a><\/span> reported last year that Greek electricity grid operator Admie and the Egyptian Electricity Transmission Company are collaborating on technical design, while Renewable energy player Elica has applied to the EU for funding. Homegrown renewable energy provider Infinity Power and Greek infrastructure investor Coupelouzos in May announced <\/span>plans to study<\/a><\/span> the development of new renewable energy projects in Egypt to generate electricity for GREGY. Plans for a Greece-Egypt link first surfaced back in 2008, but were shelved following the 2011 revolution.<\/span><\/p>\n

#5<\/span> - <\/span>The <\/span>Greece\u2013Africa Power Interconnector (GAP)<\/a><\/span>is a 2-GW link that will transit the Mediterranean between Marsa Matrouh and Crete. US contractor <\/span>McDermott<\/a><\/span> in February inked an MoU with Greek renewables company <\/span>Eunice Energy Group<\/a><\/span> to work on the project, which is expected to be completed before 2030.<\/span><\/p>\n

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