Egypt is turning sun and wind into its next big export
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British International Investment (BII) has pledged over $300 million to Egypt’s clean energy sector, backing what could become two of the largest renewable energy projects on the African continent. But behind the figures lies a deeper shift: Egypt is rapidly building the foundation for a new kind of export economy—one powered not by fossil fuels, but by electrons and green molecules.
BII funding fuels two flagship projects
The UK’s development finance institution has committed more than $190 million to the Gulf of Suez Wind Farm, which is poised to become the largest onshore wind installation in Africa. The farm will produce enough electricity to power millions of homes and prevent over 2 million tonnes of CO₂ emissions annually.
In parallel, BII is backing Egypt’s first large-scale solar and battery storage system—a $475 million project with Norwegian firm Scatec and other global lenders. It includes 1 gigawatt of solar capacity and 200 megawatt-hours of battery storage, with BII providing a $100 million concessional loan and $15 million grant.
Beyond the grid: laying tracks for a green economy
Egypt’s clean energy push isn’t just about adding megawatts to the grid. It’s about positioning the country as a renewable powerhouse for both domestic resilience and international supply.
The projects feed into Egypt’s Vision 2030 and the NWFE platform, a cross-sector investment strategy that aligns water, food, and energy development with climate goals. But more strategically, they mark Egypt’s shift toward becoming a net exporter of renewable power and low-carbon industrial goods.
Europe is watching—and investing
The geopolitical logic is clear. With Europe under pressure to reduce its reliance on fossil fuels and find new energy partners, North Africa offers proximity, sunlight, land, and now, scale. Egypt’s neighbors—Morocco and Tunisia—are already developing subsea interconnectors with southern Europe. Egypt is now looking to join them.
Proposals for cables connecting Egypt to Greece and Cyprus could transform the country into a major electricity exporter. But energy exports alone may not be the most valuable path.
Green electrons or green industries?
Policymakers and private investors are debating whether to simply transmit renewable energy abroad or use it to power local industries. The answer could shape Egypt’s economic future.
Producing green hydrogen or ammonia for export is one path—Scatec already has a long-term offtake agreement for green ammonia headed to Germany. Another strategy involves decarbonizing heavy industry. Earlier this year, Scatec signed a deal to supply solar power and battery storage to Egyptalum, the country’s largest aluminum producer.
This kind of vertical integration—using renewables to support cleaner industrial production—could give Egypt a competitive edge, especially as European importers tighten carbon rules under mechanisms like the EU’s Carbon Border Adjustment.
Private capital is moving in
A shift is underway from dependence on development finance to increased commercial interest. Early renewables in Egypt relied heavily on DFIs like the EBRD and AfDB. Now, with regulatory frameworks and government guarantees in place, commercial lenders and Gulf investors—like Masdar and ACWA Power—are entering at scale.
“We’re at a turning point,” said Sherine Shohdy, BII’s Egypt director. “The capital appetite is growing. Investors are seeing Egypt not just as a risk, but as a leader in regional energy innovation.”
From energy exporter to energy hub
If Egypt plays its cards right, its renewable revolution could transform it from an energy consumer to a regional energy hub. That means not just shipping electrons abroad, but building green value chains at home: metals, fertilizers, hydrogen, and more.
Whether that vision materializes will depend on smart policy, infrastructure, and partnerships—but the wind is at Egypt’s back.