Saudi Arabia and Egypt on Saturday signed a SR6 billion ($1.6 billion) agreement to link their electricity grids, a project that will allow power trading between the two countries.

Peak-time summer power consumption in Saudi Arabia falls between noon and mid afternoon when air conditioners are most intensively used, while in Egypt peak time is after sunset.

Linking the two will allow Saudi Arabia to export power to Egypt.

The kingdom's majority state-owned utility, Saudi Electricity Company (SEC), and Egypt's state power company Egyptian Electric Holding Company will share the cost of the 3,000-megawatts undersea transmission cable.-Reuters