Egypt earmarks EGP 136.3 bln for electricity, renewable energy projects in FY25/26
Public investments are expected to cover 73 percent of the total funding, with private sector contributions making up the remaining 27 percent.
State-owned holding companies and public enterprises will account for around 45 percent of the public investment share.
The ministry’s plan aims to boost the sector’s output to EGP 655.6 billion in FY2025/2026, up from EGP 229 billion in FY2023/2024, with projections to reach EGP 984.5 billion by FY2028/2029.
The sector’s GDP contribution is targeted to hit EGP 285 billion this year and grow to EGP 430 billion within three years, reflecting annual growth rates ranging between 15 and 20 percent.
According to Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat, the electricity sector is a cornerstone of Egypt’s economic growth and quality of life, underpinning daily household needs, industrial production, agricultural development, trade, services, and urban expansion.
She noted that per capita electricity consumption has become a key measure of living standards and competitiveness in global economic literature.
She also emphasized that the sector’s progress relies on diversifying energy sources, expanding renewable energy, improving efficiency in traditional resources, and maintaining universal access.
The plan sets ambitious infrastructure goals for the year ahead. Egypt aims to achieve 99.8 percent electricity coverage, increase annual generation capacity to 235 billion kWh from 229 billion kWh two years ago, and add 1,200 megawatts of new thermal power generation.
Efforts are also underway to cut energy losses to 16.5 percent, down from 19.6 percent in FY2023/2024, while commissioning nine new 500 kV transformer stations and boosting electricity exports to 3,900 megawatts.
Major projects include the national programme to replace overhead power lines with underground cables, upgrades to transformer stations in 10th of Ramadan, Zahraa Nasr City, Mallawi, and El-Mataria, and relocating electricity infrastructure affected by road expansions.
The government also plans to expand grid interconnections with neighbouring countries to strengthen Egypt’s role as a regional energy hub.
This includes upgrading the Egypt–Sudan link from 80 megawatts to 300 megawatts, enhancing existing links with Jordan and Libya, completing the Egypt–Saudi Arabia interconnection with a 3,000-megawatt capacity, and advancing plans for a 1,000-megawatt undersea interconnector with Cyprus and Greece.
The strategy also places a strong emphasis on renewable energy, with a goal to raise its share to 20 percent of total generation by FY2025/2026, up from 12 percent in FY2023/2024.
This will involve expanding solar and wind energy projects, dedicating 2,900 square kilometres of land to renewable energy development, and achieving a combined solar and wind generation capacity of 6,470 megawatts.
The government is also working to attract private investment through land allocation, streamlined licensing, and concessional financing with the support of multilateral and bilateral development partners.
Development partners are playing a key role in supporting these plans. A 54 million euro debt-swap agreement with the German Development Bank (KfW) will fund transmission network upgrades for the integration of renewable energy.
The French Development Agency (AFD) is providing EGP 70 million in technical support for sector reforms, while the European Union is funding EGP 125 million in transformer station expansions in 10th of Ramadan and Zahraa Nasr City to strengthen the national grid.
The ministry also highlighted the success of its NWFE programme, a national platform for green projects. The programme has mobilized $4 billion in concessional finance over two and a half years.
This funding has already supported 4.2 gigawatts of renewable capacity, advancing Egypt toward its target of 10 gigawatts by 2028.