Egypt Greenlights Private Sector Renewable Projects in $388M Move Toward Energy Market Reform
The Egyptian Ministry of Electricity and Renewable Energy has awarded qualification certificates to four private-sector renewable energy projects, comprising both solar and wind technologies.
With a total generation capacity of 400 megawatts and a combined investment of $388 million, these projects mark a major milestone in Egypt’s strategy to liberalize its electricity market and encourage private sector involvement in clean energy.
According to the ministry’s statement, the approved companies will be responsible for constructing the power plants and directly selling the generated electricity to industrial consumers.
The electricity will be transmitted through the national grid by the Egyptian Electricity Transmission Company, which will receive a transmission fee.
Crucially, this model requires no financial contributions or guarantees from the government, reducing the public sector’s burden and empowering private entities to take a leading role in the country’s energy transition.
The selected projects include Neptune for Electricity Production and Sales, which will power the Suez Steel factory using solar energy.
AMEA Power will supply electricity from a solar station to the Suez Canal Container Terminal and Bivar Chemicals.
Meanwhile, Taqa PV will deliver energy to Ezz Steel via a hybrid solar and wind facility. Enara for Renewable Energy Services will provide electricity to both the Helwan Fertilizer Factory and the Alamein Silicon Products Complex through a similar hybrid system.
Minister of Electricity Mahmoud Esmat explained that the Electricity Utility and Consumer Protection Regulatory Agency evaluated a total of seven private-sector proposals, each aiming to build 100-megawatt renewable energy plants.
These reviews were conducted in cooperation with a global consultancy and the European Bank for Reconstruction and Development (EBRD), which also helped develop the regulatory framework and agreements enabling private sector engagement through the Power-to-Power (P2P) system.
Esmat highlighted that this initiative is a key component of a larger governmental agenda grounded in Egypt’s Electricity Law.
The law is designed to create a competitive electricity market by allowing producers, consumers, and distributors to operate in a more dynamic and open environment. This shift is expected to enhance service quality, lower electricity costs, and attract long-term investments into Egypt’s energy infrastructure, positioning the country as a regional leader in renewable energy development.