RIYADH: Egypt has allocated 136.3 billion Egyptian pounds ($2.8 billion) to the electricity and renewable energy sector in its 2025-26 development plan, nearly double the 72.6 billion pounds set aside last year, according to the Ministry of Planning.
The plan emphasizes energy diversification, expanding renewable power, and strengthening the national grid to meet rising demand.
It follows a string of recent investments in Egypt’s energy sector, including financial closure agreements with Norway’s Scatec for a $600 million solar plant and a $1 billion wind project in June.
Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation. Supplied
Days later, Engie completed the 650-megawatt Red Sea Wind project ahead of schedule. Egypt has also reaffirmed its commitment to a €4 billion ($4.65 billion) undersea cable project with Greece, backed by the EU, to export renewable electricity to Europe.
“The electricity and renewable energy sector is responsible for providing electric power to all users across various production and consumption areas,” said Rania Al-Mashat, minister of planning, economic development and international cooperation.
“It contributes to achieving sustainable development goals and continuously improving the quality of services provided to citizens.”
For 2025-26, electricity and renewable energy output is projected to reach 655.6 billion pounds, climbing to 984.5 billion pounds by 2028-29. Sector production is forecast to rise from 285 billion pounds to 430 billion pounds over the same period, reflecting annual growth rates of 15 to 20 percent.
Public investment will cover 73 percent of total spending, with the private sector contributing 27 percent. Around 45 percent of the public share will come from holding companies and public enterprises. Projects under a debt swap agreement with Germany worth 830 million pounds will enhance renewable energy transmission and grid capacity.
The plan also targets near-universal electricity access, increasing coverage to 99.8 percent of the population by June 2026. Other goals include raising annual generation to 235 billion kilowatt-hours, adding 1,200 MW of thermal capacity, and reducing transmission losses to 16.5 percent from 19.6 percent in 2023/2024.
Egypt’s regional integration efforts will expand cross-border interconnection capacity to 3,900 MW by 2025/2026, up from 780 MW today. Key projects include upgraded links with Jordan, Libya, and Sudan, the Saudi interconnection, and a 1,650-km undersea cable with Greece and Cyprus.
On the renewables front, clean energy’s share of total production is set to reach nearly 20 percent by 2025-26, up from 12 percent in 2023-24. Solar and wind capacity will expand to 6,470 MW, supported by 2,900 sq. km of allocated land.
Al-Mashat stressed that the plan “focuses on diversifying energy sources and benefiting from renewable resources, alongside enhancing energy efficiency and planning to meet future demand.” She added that investments will also improve access and quality of energy services.
Private sector participation will be encouraged through land allocations, expanded licensing, and financing support via development partnerships. Current projects include the new Mallawi transformer station, rehabilitation of Matariya station, and two overhead transmission lines by Orascom and Al Nowais, financed under a €54 million debt swap with Germany’s KfW Development Bank.
Further support includes technical assistance programs with the French Development Agency worth 37 million and 33 million pounds, as well as a 125 million-pound EU-funded grid enhancement project to expand the 10th of Ramadan and Zahraa Nasr City stations.
Al-Mashat also pointed to the success of Egypt’s NWFE platform, which has attracted $4 billion in concessional financing over the past two and a half years. The funds have helped develop 4.2 GW of renewable capacity out of a 10-GW target by 2028, reinforcing Egypt’s push to become a regional energy hub.
