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.

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