Egypt and Greece to hire consultancy for electricity connection

09 May 2023 2 min. read

A consultancy will soon be chosen to conduct the technical and economic feasibility study for a $4 billion joint intercontinental power connection project.

The EuroAfrica Interconnector is a collaborative project set to create an underwater electricity connection that will link the electrical grids of Egypt and Greece through Cyprus. The project will contribute to an EU target of 10% electricity interconnection among member states and has the potential to significantly reduce harmful greenhouse gas emissions via promotion of renewable energy sources.

The intention to award a contract to a consulting firm was announced in January by Mohamed Shaker, Egypt’s Minister of Electricity and Renewable Energy.

Egypt and Greece to hire consultancy for electricity connection

The award will be an early step forward for the project that aims to identify the financial and technical requirements of the power infrastructure initiative and to determine the ideal route for a cable connection.

The current shortlist of candidates for the consulting contract include Électricité de France, a multinational electric utility company; Elia Grid International, a global consultancy; CESI, an Italian technical consulting company; DNV, a Norwegian-German technical consulting; Lahmeyer International, an engineering consultancy; and ESB International, a Dublin-headquartered engineering consultancy.

Several additional unnamed consultancies from Greece, Belgium, China, and the United States are reportedly also on the shortlist for the bidding process.

Egypt is slated to become a regional energy hub, with an energy output that will greatly benefit Greece and Cyprus. In 2015, the country signed a $9 billion contract with Siemens to build gas power plants. Gas processing facilities are beginning to process huge amounts of fuel from gas fields in Israel and Cyprus.

With ties spanning back to the time of Alexander the Great, Egypt and Greece currently share friendly relations. The two Eastern Mediterranean neighbors have worked together in recent decades to address joint economic and security concerns, including a 2020 maritime agreement sketching their respective exclusive economic zones.

The war in Ukraine and the disruption of Europe’s gas supplies from Russia have compelled the EU to seek alternative energy sources. Due to its proximity to Europe and the huge potential for solar and wind energy, Egypt is seen as a great alternative – if infrastructure development can be quickly stepped up.