GE has connected a new 500/220 kilovolt (kV) gas-insulated substation to Egypt’s national grid as part of the Egypt-Saudi Arabia Interconnection Project, Egypt Oil & Gas reports.

The new substation is located in Badr City, northeast of Cairo, and has the capacity to route 1.5 gigawatts (GW) of electricity—enough electricity to power 1 million homes, the company said in a press release

The projected was completed on behalf of the Egyptian Electricity Transmission Company (EETC).

The Egypt-Saudi Arabia Interconnection Project aims to connect the electricity grids of the two neighboring companies to create more flexibility in the regional electricity market. Upon completion, Egypt and Saudi Arabia will have the capacity to exchange 3.0 GW of electricity, Amwal Al Ghad reports.

As electricity demand peaks at different times in Egypt and Saudi Arabia, the interconnection project could help stabilize both markets, according to Amwal Al Ghad.

The transmission line will stretch 1,300 kilometers from Badr City, Egypt, to Medina and Tabuk in Saudia Arabia.

The project should become operational in 2019, Arab Finance reported in May, and cost the Egyptian government $600 million out of a total $1.6 billion.

The project includes two 500 kv AC/DC substations in Badr City, a linking station, and a 1,300 kilometer transmission line, according to Arab Finance.