Saudi Arabia and Egypt signed a $1.6 Billion deal agreement on Saturday to link their electricity grids, a project that will allow power trading between the two countries.
In Saudi Arabia most of their power consumption is used between noon and mid afternoon, that’s when air conditioners are more intensively used, while in Egypt peak time is after sunset.
After making the deal, Ahmed Moustafa Emam, Egypt’s electricity minister said that the linkage is expected to take up from 24 to 30 months to complete. Emam has said since peak hours in Egypt and Saudi fall at different times of the day, both countries will be able to divert resources as necessary to meet increased demand.
Egypt is paying around 40 percent of the cost, while Saudi Arabia will handle the other 60 percent. No surprise there! But the thing is, Egypt is literally broke! Where the hell are we getting the 40 percent from?
Apparently, Egypt and Saudi Arabia had been discussing the power linkage idea for several years now. The only reason it was delayed was because of Hosni Mubarak’s step down 2 years ago.
I think all we have to do now, is wait and see what happens next!