Tuesday, 8 September 2020

SFE in talks with investors, traders to develop EuroAfrica electricity link

SFE in talks with investors, energy traders to develop EuroAfrica electricity link: The Sovereign Fund of Egypt (SFE) has opened talks with European infrastructure investors and energy traders to join it in investing in the EuroAfrica transmission link and import electricity from Egypt, CEO Ayman Soliman tells Bloomberg. Egypt signed on to the USD 4 bn EuroAfrica Interconnector with Greece and Cyprus last year, and the fund is now in discussions with infrastructure investors and traders to “to find counterparts who can invest alongside the fund and develop the transmission line,” Soliman said.

What is EuroAfrica? The 2-GW transmission link will connect Egypt’s electricity grid to mainland Europe via Cyprus, making it the longest interconnector cable in the world. The first, EUR 2.5 bn phase of the project will connect Egypt, Cyprus, Crete and Greece and is set for commissioning by December 2023 with an initial capacity of 1 GW. The link “will position Egypt as a long-term renewable supply hub for Europe,” Soliman said.

The SFE is also in talks to export electricity to Africa: “We are identifying the relevant players in Africa to partner or work with and we are in talks with some sovereign funds,” Soliman said, without naming specific countries or institutions.

Read our three-part Hardhat series on the current state of the electricity sector: Part 1 | Part 2 | Part 3.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.