UK Explores Renewable Energy Imports from Egypt

Tuesday, 26 September 2023

The United Kingdom is considering a partnership with Egypt to import electricity generated from solar and wind energy sources. This initiative involves the establishment of subsea cables to facilitate the transfer of electricity from Egypt to Europe.

The forthcoming Rystad Energy’s EMEA Summit in London is set to unveil details of this ambitious plan. Carlos Diaz, Director of Renewables and Power at Rystad Energy, highlighted the increasing European demand for low-carbon electricity. He stated, "European demand for low-carbon electricity is anticipated to see significant growth in the next three years. Given the potential limitations in building infrastructure within Europe, it's imperative to explore alternative sources."

Egypt's geographical location offers an advantage for renewable energy production, with abundant sunlight and consistent high wind speeds. In 2021, Egypt boasted an operational wind power output of approximately 1.38GW, predominantly managed by the New & Renewable Energy Authority, a segment of the Ministry of Electricity and Renewable Energy. The Gulf of Suez region, with an average wind speed of 10.5m per second, facilitated Egypt in achieving a wind energy production of 1.64GW in 2022. Furthermore, Egypt's strategic position as an energy nexus in the Middle East and North Africa is underscored by its 250MW interconnector with Jordan and an 80MW connection with Sudan.

The UK aims to tap into this energy reservoir through the existing European network. Diaz elaborated, "Europe's well-established network should enable the efficient distribution of power, extending to Northern Europe and the UK."

However, it's worth noting that a similar endeavour faced challenges in December 2022. This project, which aimed to connect the UK to a Moroccan solar farm via an undersea cable, encountered delays. Xlinks, the company overseeing the project, was unable to secure a timely 'contract for difference' (CfD). CfDs are pivotal in the renewable energy sector, offering producers a fixed price for their output, thus encouraging investments in a field where returns can be unpredictable.