Egypt plans to increase renewable share in its power mix to 20% by 2026

The Egyptian Ministry of Planning, Economic Development and International Cooperation has published its reviewed electricity sector targets for the 2025/2026 fiscal year plan. The plan details investments amounting to EGP136.3bn (US$2.8bn) to reach a wide variety of capacity and electric network targets. Egypt aims to increase its electricity production to about 235 TWh (+3% from around 230 TWh in 2023/2024), through the addition of 1.2 GW of thermal generation capacity and the promotion of renewables to reach a targeted capacity of solar and wind power plants of 6,470 MW, expecting to increase its share of renewable energy in the power mix to nearly 20% in 2025 (up from 12% in 2024). 

To enhance its  regional role as an energy hub, the country aims to increase the its interconnection networks to 3.9 GW (currently at 780 MW), through the expansion and the start of new interconnection lines, including the 550 MW Egyptian-Jordanian electricity interconnection line, the 3 GW interconnection project with Saudi Arabia, the addition of capacity to the interconnection with Sudan (from 80 to 300 MW), among others. The plan also expects the activation of the signed MoU with Cyprus and Greece for electrical interconnection with a capacity of 1 GW in the first phase. 

To expand electricity coverage to 99.8% nationwide by the end of June 2026, Egypt aims to add 9 transformer substations at 500 kV and reduce its percentage of electricity loss to 16.5% in the plan year (19.6% in 2024).