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admin · Posted: 2006-11-12, 13:25 **Egypt and Saudi power deal part of bigger plan**

A deal between Egypt and Saudi Arabia that may lead to the interconnection of their electricity systems will likely provide a more stable electrical supply to Mediterranean and Middle Eastern countries, analysts told UPI.

The move could connect Gulf countries to the world’s largest multinational power grid.
On September 27, Egypt and Saudi Arabia signed a contract to study the possibility of connecting their electrical grids. The Egyptian minister of electricity and energy said the study would cost $2.6 million, and that the contract indicated the commitment of the countries to connect their grids, according to the Saudi government-run press agency.
The agreement comes as Middle Eastern countries show a dramatic increase in demand for electricity. Between 1990 and 2003, the consumption of electricity in the region increased from 214 to 471 kilowatt hours, a rise of 120 percent. In comparison, Japan saw a 23 percent rise and the United States a 29 percent increase during the same period, according to the US Energy Information Administration, the Department of Energy’s data arm.
The connection would be part of a much larger effort by the European union"", Mediterranean countries, and Middle Eastern nations to allow the trading of electricity across the region, and it would bring Gulf Cooperation Council countries in line to join the world’s largest electrical interconnection scheme, the Mediterranean Ring project.
Countries surrounding the Mediterranean have been in discussions since 1984 to connect their power grids through the project.

North African countries are connected to Jordan, Syria, and Turkey through Egypt, and Morocco has been connected to Europe through Spain since 1997. Plans are also being discussed to connect Egypt to sub-Saharan African countries through the Nile Basin Initiative.

The effort to join grids from North Africa to Europe through Middle Eastern countries was motivated by the same reasons that drive the other sections of the Mediterranean Ring project, according to Mehdi Noorbaksh, professor of international affairs at Harrisburg University of Science and Technology in Harrisburg, PA, USA.

“The project to connect electricity in Jordan, Syria, Egypt, Turkey, and Iraq started in 1988. The sole purpose behind it was economic consideration and efficiency. The countries could share peak and non-peak time of electrical consumption, and it was estimated that making the links would save them approximately $2 billion a year,” he said. “They saved cost because they could trade power during peak consumption hours, and stability in case of blackouts in one country. If power fails in one country for any reason, electricity could be supplied to the country in trouble.”

Chuck Newton, president of the Newton-Evans Research Co., which in March released a comprehensive study of the Mediterranean Ring project, also said it makes the individual countries’ energy cheaper and more secure.

“The expectation is that fewer power plants will be required to supply electricity across the region, as there are different load requirements at different times of the year,” he said. “Costs should remain stable as a result of less capital funding required for new plants.”
With an increased reliance on foreign supplies of electricity, the entire grid’s reliability becomes essential, so European concerns over the stability of their own grids, once they are fully connected to the Mediterranean Ring, have led to the EU’s close consultation with the project.

“The EU has established a task force within EURELECTRIC to work with the Mediterranean countries to develop a grid that can safely and reliably interconnect with the European grid,” Newton said.
The union"" of the Electricity Industry, EURELECTRIC, is an organization of electric utilities within the European union"".

Meanwhile, the GCC countries - Saudi Arabia, Bahrain, Kuwait, Qatar, Abu Dhabi, Oman, and the United Arab Emirates - are well into the planning stages of interconnecting their electrical grids, according to the Newton-Evans Research Company’s report.
Connections to Iraq are also under consideration, though the current state of the Iraqi domestic power grid and political instability make planned connection through Syria and Turkey unlikely anytime soon, according to the report.

“This is definitely being developed. A connection from Iran is now occurring as well, and a likely connection to/from Syria is also in the planning stages,” Newton said.
Despite the emphasis on economic considerations, politics still influences the negotiations behind interconnection. Israel’s involvement in the project was effectively vetoed by Syria and others, Noorbaksh said.

“Without Syrian participation, Turkey cannot be connected to the system,” he said. Turkey provides a crucial link to Europe through Bulgaria.

But the project could also have a positive political impact. “Politically, it is a very important step in bringing the countries of the region together for mutual interest. The Middle Eastern countries have argued in favor of a regional market, but it has not materialized yet because of the political tensions in this part of the world,” he said. “The electrical connectivity is a right step toward more regional integration and stability in the Middle East.”

United Press International