The two countries plan to exchange 3,000 megawatts.
The capacity of the first phase being operated is 50 megawatts.
Sudan is finalizing the installment of distribution parts.
Egypt chaired on Monday the 35th Meeting of the Executive Bureau of Arab Ministerial Council of Electricity held in Cairo.
President Abdel Fatah al-Sisi revealed on Saturday that Egypt is seeking to become a regional digital hub that transmits data between Asia, Africa, and Europe.
President Abdel Fatah al-Sisi arrived to the Cyprus capital, Nicosia, on Monday.
The project will be fully delivered by 2020, with the first phase to be finished in 2019 at a capacity of 1,200 MW.