Egypt, Jordan move to upgrade power interconnection in strategic step toward arab electricity market

CAIRO – 4 March 2026: Egypt’s House of Representatives is reviewing a presidential decree approving a memorandum of understanding with the Arab Fund for Economic and Social Development to finance a comprehensive feasibility study for expanding the electricity interconnection between Egypt and Jordan.

The decree, No. 568 of 2025, authorizes a grant of up to 300,000 Kuwaiti dinars to support technical and economic studies aimed at increasing the capacity of the existing power link between Egypt and the Jordan.

The current interconnection, operational since October 1998, has a capacity of 400 megawatts and has played a key role in enhancing grid stability in both countries. It has enabled electricity exchange during peak demand and emergency situations, strengthening energy security and reducing the risk of outages.

Amid rapid regional developments in renewable energy and growing electricity demand, both countries are now considering increasing the transmission capacity to around 2,000 megawatts. The proposed upgrade is designed to enhance grid flexibility, optimize surplus generation capacity, and support the creation of a future Arab common electricity market.

The initiative aligns with broader regional ambitions to expand cross-border electricity trade and promote clean energy integration. The Arab Fund’s support comes under its green projects program, which aims to back environmentally sustainable infrastructure across the Arab world, including electricity interconnection projects.

The planned feasibility study will assess technical alternatives for capacity expansion, estimate investment costs and expected returns, and evaluate environmental and social impacts to ensure compliance with international standards during both construction and operation phases.

Egypt’s Ministry of Planning, Economic Development and International Cooperation will oversee implementation of the memorandum and coordinate with the Arab Fund. The Egyptian Electricity Transmission Company will serve as the executing entity, responsible for conducting the study and securing any additional financing required beyond the grant amount.

The expansion is also expected to reinforce broader regional integration, supporting electricity exchange with countries already linked to the two grids, such as Syria and Lebanon, and paving the way for deeper connectivity with Saudi Arabia and Iraq.

Lawmakers described the grant as strategically significant, not merely for its financial value but for enabling evidence-based evaluation of the project’s economic viability. The expansion is seen as strengthening Egypt’s position as a regional energy hub, boosting electricity export capacity, maximizing returns on existing energy investments, and advancing sustainable development goals at both national and regional levels.