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Hitachi ABB wins Saudi-Egypt power interconnection deal
Project will supply 3,000MW of mostly renewable energy along 1,350km of overhead lines and subsea cable
Michael Marray 13 Oct 2021

A consortium led by Hitachi ABB Power Grids has won the contract to build a high voltage direct current (HVDC) power link between Egypt and Saudi Arabia. The project will enable the two countries to exchange up to 3,000 megawatts of power, much of which is expected to be generated from renewable energy sources in the future. It will support the flow of power in multiple directions between three terminals, and will be the first interconnection allowing the exchange of electricity between both countries.

The contract was signed in collaboration with two consortium partners. Saudi Services for Electro Mechanic Works will work with Hitachi in Saudi Arabia while Orascom Construction will be its partner in Egypt.

It was awarded by Saudi Electricity Company and Egyptian Electricity Transmission Company. Terms of the contract were not disclosed, but Japanese media said the entire project would cost US$1.8 billion.

The work includes the supply of three HVDC converter stations in Medina and Tabuk in Saudi Arabia, and Badr in Egypt. Medina is Saudi Arabia’s fourth largest city and Tabuk is close to Neom, the kingdom's planned showcase city of sustainability. Badr is a high-growth industrial city close to Cairo and the Suez Canal. The HVDC interconnection will transport up to 3,000MW of electricity at 500 kilovolts along 1,350 kilometres using overhead power lines and a subsea cable across the Red Sea.

The power will be able to flow in multiple directions between the three terminals – from Tabuk to Badr, and simultaneously from Tabuk to Medina. The electricity flow can be controlled and reversed between the stations without interrupting the continuous flow, providing maximum flexibility, grid resilience and supply security to both countries.

The HVDC link will give Egypt access to the interconnected power grids of the Arabian Gulf, and Saudi Arabia access to those of North Africa, while strengthening grid resilience and power supply security.

Both countries have ambitious carbon-neutrality targets. Saudi Arabia is working to increase the share of natural gas and renewable energy to approximately 50% of the power mix by 2030, and Egypt intends to increase the supply of electricity from renewable sources to 42% by 2035. The interconnection directly contributes to the realization of these goals.

Saudi Minister of Energy Prince Abdulaziz Bin Salman says the kingdom's interconnection plans comply with its Vision 2030 initiative. Leveraging its strategic location while optimizing its ownership of the largest power grid in the Middle East, Saudi Arabia aims to be a regional hub for energy exchange and a prominent trader in the market.

In the longer term, the link has the potential to be part of a more broadly interconnected energy system with Europe and the eastern Mediterranean, allowing the exchange of solar power from the south and east with wind and hydro power from the north.

HVDC is considered a key technology for sustainable energy transition. Hitachi ABB Power Grids, which is headquartered in Switzerland, was involved in the North Sea Link, which was put into commercial operation earlier this month. At 720km, it is the world's longest subsea electricity cable, connecting Norway and Britain’s energy markets to enable the exchange of renewable power.

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