7 ELECTRICITY SECTOR DEVELOPMENTS IN EGYPT …
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and oil, and have been critical in helping fund the current Egyptian
government. These nations also participate in Egypt’s renewable power
sector. Saudi-based ACWA Power, partially owned by the Saudi government, is developing multiple solar projects in the country. UAE-based
Al Nowais Investments is also developing significant renewable energy
capacity in Egypt. In terms of financing, Egypt is also working with
a number of multilateral and commercial lenders to bring projects to
fruition (discussed further below).
Alternative energy development also creates the opportunity for new
and improved commercial terms which allow Egypt to wield additional
economic and geopolitical influence. For example, meeting increasing
levels of domestic electricity demand with renewable and nuclear sources
could permit supplementary liquefied natural gas (LNG) exports either
on the spot market, or via long term contracts. To this end, Egypt has
already begun to import gas from Israel and Cyprus to make additional
domestically produced gas available to the international LNG market.
Excess electric generation that substantially exceeds domestic demand
also raises the prospect of exporting additional electricity internationally,
which bodes well for relationship fortifying and cross-border economic
development. For example, Egypt is already a net exporter of electricity,
enjoying interconnections with Jordan and Libya. 13 Egypt has also signed
a preliminary agreement with a Cyprus-based firm to lay an undersea
310-kilometer transmission line between Egypt and Cyprus, connecting
African and European electric systems. 14 Additional interconnections are
under construction with Saudi Arabia, in pilot phase with Sudan and
under study with the United Arab Emirates.
While small compared to overall power demand, Egypt’s exports to
Libya and Jordan are consistent with Egypt’s broader regional energy hub
ambitions, as are Egypt’s plans with Cyprus, Saudi Arabia, the UAE, and
Sudan. More specifically, power imports to Libya tie into Egypt’s strategy
of influencing the outcome of the Libyan Civil War and its postwar oil
sector. The interconnection with Sudan also boosts cooperation at a time
when Egypt seeks to influence Ethiopia’s Grand Ethiopian Renaissance
Dam (GERD), which Egypt perceives as a threat to its water security.
Egypt seeks Sudan’s support in negotiating agreement terms, including
minimum water release amounts and longer reservoir filling periods. 15
While small in size, international interconnections can be complex from
189
and oil, and have been critical in helping fund the current Egyptian
government. These nations also participate in Egypt’s renewable power
sector. Saudi-based ACWA Power, partially owned by the Saudi government, is developing multiple solar projects in the country. UAE-based
Al Nowais Investments is also developing significant renewable energy
capacity in Egypt. In terms of financing, Egypt is also working with
a number of multilateral and commercial lenders to bring projects to
fruition (discussed further below).
Alternative energy development also creates the opportunity for new
and improved commercial terms which allow Egypt to wield additional
economic and geopolitical influence. For example, meeting increasing
levels of domestic electricity demand with renewable and nuclear sources
could permit supplementary liquefied natural gas (LNG) exports either
on the spot market, or via long term contracts. To this end, Egypt has
already begun to import gas from Israel and Cyprus to make additional
domestically produced gas available to the international LNG market.
Excess electric generation that substantially exceeds domestic demand
also raises the prospect of exporting additional electricity internationally,
which bodes well for relationship fortifying and cross-border economic
development. For example, Egypt is already a net exporter of electricity,
enjoying interconnections with Jordan and Libya. 13 Egypt has also signed
a preliminary agreement with a Cyprus-based firm to lay an undersea
310-kilometer transmission line between Egypt and Cyprus, connecting
African and European electric systems. 14 Additional interconnections are
under construction with Saudi Arabia, in pilot phase with Sudan and
under study with the United Arab Emirates.
While small compared to overall power demand, Egypt’s exports to
Libya and Jordan are consistent with Egypt’s broader regional energy hub
ambitions, as are Egypt’s plans with Cyprus, Saudi Arabia, the UAE, and
Sudan. More specifically, power imports to Libya tie into Egypt’s strategy
of influencing the outcome of the Libyan Civil War and its postwar oil
sector. The interconnection with Sudan also boosts cooperation at a time
when Egypt seeks to influence Ethiopia’s Grand Ethiopian Renaissance
Dam (GERD), which Egypt perceives as a threat to its water security.
Egypt seeks Sudan’s support in negotiating agreement terms, including
minimum water release amounts and longer reservoir filling periods. 15
While small in size, international interconnections can be complex from