According to government sources, Egypt will begin its electricity interconnection project with Greece before the end of the second half of this year.
Designated as a priority initiative within the European Union, the project is expected to receive a €1 billion grant and concessional financing.
Sources told Al Arabiya Business that three European financial institutions have shown interest in funding the joint Egypt-Greece electricity transmission project. Further discussions on financing arrangements are scheduled for next month.
Last week, Egyptian Minister of Electricity Mahmoud Esmat met with representatives from the Greek energy group Copelouzos. They presented their proposed mechanisms for the project and suggested that the exchanged electricity be generated from renewable sources.
The Egypt-Greece electricity interconnection is part of a larger regional effort to improve energy security and integrate renewable energy into the power grids of Europe and the Mediterranean. The project aims to create a subsea power link between the two countries, enabling Egypt to export surplus electricity—primarily from solar and wind energy—to Greece and the broader European market.
This initiative aligns with the EU’s strategy to diversify its energy sources and reduce reliance on fossil fuels, especially amid recent geopolitical challenges affecting energy supplies. With its abundant renewable resources and strategic location, Egypt is positioning itself as a key electricity hub between Africa, the Middle East, and Europe.
In recent years, Egypt has significantly increased investments in renewable energy, including the Benban Solar Park—one of the largest in the world—and major wind farms in the Gulf of Suez. The interconnection with Greece would represent a major step in utilizing these resources to meet regional and international energy demands.