EGYPT UNVEILS EGP 136.3BN PLAN TO RAISE RENEWABLES SHARE TO 20% BY 2026

Egypt sets sights on becoming a regional energy hub with a record EGP 136.3bn investment in electricity and renewables for FY 2025/26.

Egypt Investment plan Electricity Green energy transition Africa Development.
Energy System
Energy System


Egypt is ramping up its ambition to become a regional energy hub with an EGP 136.3 billion investment plan for its electricity and renewable energy sector in the 2025/26 fiscal year, according to the Ministry of Planning, Economic Development, and International Cooperation.

The investment marks a bold step up from the EGP 72.6 billion allocated in FY 2024/25 and the EGP 95.8 billion actually spent in FY 2023/24, reflecting Cairo’s strategy to expand cross-border electricity trade and boost renewable energy output.

Planning and International Cooperation Minister Rania Al-Mashat said the programme aims to extend electricity coverage to 99.8% of Egyptians by June 2026, while also multiplying the country’s electricity interconnection capacity fivefold to 3,900 megawatts. This includes completing the landmark 3,000MW direct current interconnection with Saudi Arabia and advancing agreements with Cyprus and Greece for a 1,650 km submarine cable.

Al-Mashat stressed that the sector’s growth “not only enhances service delivery for citizens but also strengthens Egypt’s strategic positioning as a sustainable energy hub linking Africa, the Middle East, and Europe.”

According to the plan, 73% of the EGP 136.3bn outlay will come from public investments, while 27% will be driven by private participation. The ministry projects the sector’s output will rise to EGP 655.6bn in FY 2025/26, with a further leap to nearly EGP 1tn by 2028/29.

Among the quantitative targets are generating 235 billion kWh annually, adding 1,200 MW of thermal capacity, and cutting electricity losses to 16.5%. Renewable energy’s share of the national energy mix is expected to climb to 20% in FY 2025/26, up from about 12% in FY 2023/24.

To encourage private sector engagement, the government plans to provide serviced land, streamline licensing for energy projects, and expand technical and financial support through local and international partners.

Key international collaborations include EGP 830 million in projects with Germany’s KfW under a debt swap deal, two AFD-backed initiatives worth EGP 70 million, and EU-funded expansions of transformer stations valued at EGP 125 million. Meanwhile, Egypt’s NWFE platform has already mobilized EGP 4 billion in financing for private renewable projects with a combined capacity of 4.2 GW

Domestically, the plan will advance the relocation of electrical facilities obstructing road projects, expand transformer substations in North Sinai, and complete upgrades across several electricity stations nationwide.

With this sweeping investment plan, Egypt is positioning itself not just to meet growing domestic demand but to anchor its role as a bridge in the global green energy transition.

Comments

You must be logged in to comment.