Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
This stage covers about 165 km from Saloum (Egypt) to Tobruk (Libya) to complete the North Regional Electrical Interconnection. An alternating current (AC) transmission line of about 165 km to exchange a capacity of 1000 megawatts with a voltage of (500/400) kV (Saloum (Egypt) 500 kV – Tobruk (Libya) 400 kV), with a back-to-back 500/400 kV converter station rated 1000 MW.
Objectives
Facilitate the interconnection between the local/national networks/grids of the North African countries by using the combination of alternating current (AC) and direct current (DC) transmission lines, and connections to HV national networks.
Strategic Importance
Critical infrastructure to enhance regional power integration in North Africa, allowing for more efficient use of generation resources and improved energy security.
Technical Specifications
Technology & Design
AC transmission line with back-to-back converter station.
Capacity & Size
1000 MW transmission capacity
Technical Details
An alternating current (AC) transmission line of about 165 km to transmit a capacity of 1000 megawatts with a voltage of (500/400) kV. Saloum (Egypt) 500 kV – Tobruk (Libya) 400 kV, with a back-to-back 500/400 kV converter station rated 1000 MW (two sections rated 500 kV each).
Development, Implementation & Financial Details
Development Timeline
Feasibility studies to be completed by 2024, with project structuring by 2025.
Latest Implementation Updates
UPDATED2024-07-04: Egypt & Libya agreed to boost their power grid connection – https://libyareview.com/45740/egypt-libya-to-boost-power-grid-connection/
2025-09-02 — State Information Service: Egypt plans to lift total export capacity to ~3.9 GW in FY 2025/26, with upgrades across interconnections including Libya; detailed Libya tendering TBD. [https://www.sis.gov.eg/Story/212799/Egypt-to-double-renewable-energy-investments-in-FY-2025-2026?lang=en-us]
Financing Structure
The project is likely to be financed through a combination of public investment from both countries and potential support from regional development banks.
Capital Structure
80% public funding, 20% from development finance institutions
Project Timeline
Start Date
January 2024
Expected Completion
December 2028
Development Timeline
Feasibility studies to be completed by 2024, with project structuring by 2025.
Project Status History
Status 2020
Pre-Feasibility
Status 2022
Pre-Feasibility
Status 2024
Feasibility
Additional Project Details
Preparation Funding Gap
USD 7.50M
Construction Timeline
Construction expected to take 2-3 years after financial close.
Legal & Financial Advisors
To be appointed
Market Analysis
Market Analysis
Growing demand for power in both countries, with opportunities for complementary peak load sharing.
Market Demand
Both countries face seasonal demand variations that can be partially addressed through power exchange.
Key Stakeholders
Project Sponsor
Egyptian Electricity Transmission Company, General Electricity Company of Libya
Key Parties
Egyptian Electricity Transmission Company, General Electricity Company of Libya
Investors
Governments of Egypt and Libya, potential regional development banks
Contractors & Operators
To be determined through competitive procurement
Risk Assessment
General Risk Assessment
Political risks due to regional instability, technical coordination challenges, potential construction delays.
Regulatory Risks
Established regulatory frameworks in both countries, though coordination mechanisms may need strengthening.
Impact Assessment
Environmental Impact
Limited environmental impact expected as the project follows existing infrastructure corridors.
Social Impact
Enhanced energy security, potential economic benefits from trade in electricity.
Investment Opportunities
Private Sector Opportunities
The private sector could invest in the project although this will most likely be undertaken by the two national power utilities. The project will seek to have a procurement preference for women.
Next Steps & Agreements
Next Steps
Complete feasibility studies, finalize technical design, secure financing
Offtake Agreements
Power exchange agreements to be established between the two national utilities.
Contact Information
Ministry of Electricity and Renewable Energy (Egypt), Ministry of Electricity and Renewable Energy (Libya)
