Egypt’s ambitious energy sector expansion allocates $38 billion for electricity and renewable energy projects in fiscal year 2025/26, nearly doubling previous investments to achieve universal electricity access while positioning the nation as a regional energy hub.
The comprehensive investment strategy targets 99.8% electricity coverage nationwide while adding 1,200 megawatts of thermal generation capacity and 6,470 megawatts of combined solar and wind energy, creating an estimated 200,000 direct jobs across construction, operation, and maintenance sectors.
Economic projections indicate the energy sector’s GDP contribution will reach $430 billion by 2028/29, reflecting annual growth rates between 15-20% that support broader industrial development and improve national competitiveness through reliable power supply.
“The electricity sector underpins our economic growth and quality of life, supporting everything from household needs to industrial production,” stated Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat.
Renewable energy expansion receives priority focus, with targets to increase clean energy’s share from 12% to 20% of total generation by 2025/26, supported by 2,900 square kilometers of dedicated land allocation that enables large-scale solar and wind project development.
International partnerships provide crucial financing, including a 54 million euro debt-swap agreement with Germany’s KfW bank for transmission network upgrades, plus 125 million Egyptian pounds from the European Union for transformer station expansions that strengthen national grid capacity.
Energy efficiency improvements target reducing transmission losses from 19.6% to 16.5%, saving an estimated $800 million annually in generation costs while improving service reliability for industrial and residential consumers across the country.
Regional interconnection projects expand electricity export capacity to 3,900 megawatts through enhanced links with Sudan, Jordan, Libya, Saudi Arabia, and planned undersea connections with Cyprus and Greece, generating substantial foreign exchange earnings.
The National Program for Green Projects (NWFE) has successfully mobilized $4 billion in concessional financing over two and a half years, supporting 4.2 gigawatts of renewable capacity while advancing toward the 10 gigawatt target by 2028.
Infrastructure modernization includes replacing overhead power lines with underground cables in urban areas, upgrading transformer stations in major cities, and relocating facilities affected by road expansion projects, improving both safety and aesthetic appeal.
Private sector participation increases through streamlined licensing processes and land allocation policies that attract international investment while ensuring technology transfer and local capacity building in renewable energy project development and operation.
The energy transformation supports Egypt’s broader economic diversification goals while addressing climate commitments through reduced carbon emissions and enhanced energy security that strengthens the nation’s position in global energy markets.
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