Overview

Egypt possesses an abundance of land, sunny weather, and high wind speeds, making it a prime location for renewable energy projects. The Egyptian government is cognizant of the need for a sustainable energy mix to both address increasing demand and to move to a more environmentally sustainable and diverse electricity sector. The Integrated Sustainable Energy Strategy (ISES) 2035, which builds on previous national frameworks, emphasizes the importance of renewable energy as a cornerstone of Egypt’s energy transition. Egypt has revised its targets upward, now aiming to generate 42 percent of electricity from renewable sources by 2030 and over 60 percent by 2040, leveraging wind, hydropower, photovoltaic solar, and emerging technologies such as green hydrogen.

To support this shift, the European Commission contracted Cowater International to revise Egypt’s energy mix strategy through 2040, introducing more renewables and formally integrating low-carbon hydrogen into the national energy roadmap. In February 2024, Egypt’s Supreme Council of Energy approved the National Strategy for Low-Carbon Hydrogen, targeting 5–8 percent of global hydrogen trade by 2040 and projecting up to $60 billion in investment.

The private sector remains central to delivering this capacity. As of 2025, 32 Power Purchase Agreements (PPAs) have been signed with private developers to generate 1,465 megawatts (MW) of renewable energy, with additional agreements underway. Egypt continues to promote the “Build, Own, Operate” (BOO) model to attract foreign investment and accelerate deployment of solar and wind projects.

As part of the country’s plan to become an energy hub, Egypt has constructed several energy interconnectors and will continue to do so with neighboring countries. There is one interconnector with Jordan with a capacity of 450 MW, which is expected to increase to 1,110 MW. There is a smaller interconnector with Sudan with a capacity of 80 MW that started in April 2020, which is expected to increase to 300 MW by the end of 2025. A third interconnector with Libya has a current capacity of 150 MW, but there are plans to increase it to 2,000 MW. In October 2024, Egypt signed a formal agreement with Saudi Arabia to exchange electricity through a high-voltage interconnection project. Egypt and KSA did not meet the June 2025 projected timeline to operationalize Phase I, enabling aimed to transfer 1,500 MW. Phase II was supposed to be completed by early 2026, expanding the capacity to 3,000 MW. The total investment from both countries remains $1.8 billion, and the project includes 1,350 km of overhead transmis

In 2020, Egypt and Greece reaffirmed their commitment to the GREGY Interconnector, a strategic undersea cable project that will transmit 3,000 MW of renewable energy from Egypt to Europe via Crete. Backed by the European Union’s Global Gateway initiative, the project is expected to be operational by 2030, with an estimated cost of $4.5 billion. The Government of Egypt is also advancing plans for a second interconnector with Italy, with a proposed capacity of 3,000 MW. A Norwegian consulting firm completed preliminary feasibility studies in late 2024, and the route will span approximately 2,800 km from West Sohag to the Dolo substation near Venice. The project could cost up to $20 billion and aims to export green energy and hydrogen to Europe.

In addition, the GoE has signed a binding agreement with UAE-based AMEA Power to develop a third interconnection project, also targeting 3,000 MW of capacity. This initiative is part of a broader $3 billion investment package that includes solar, wind, and battery energy storage systems, with operations expected to begin by summer 2025. To update:

• 300 MWh Egypt’s first utility-scale Battery Energy Storage System in Kom Ombo, Aswan Governorate was commissioned ahead of schedule (July 2025).
• Fully integrated with AMEA’s 500 MW solar PV plant is operational since December 2024.
• The full interconnection targeting 3,000 MW is still in development.
• The wind component, 500 MW Amunet Wind Farm in Ras Ghareb, is expected to be operational by late summer 2025.
• The interconnection infrastructure itself (grid tie-in and transmission upgrades) is progressing, but no formal commissioning announcement has been made for the full 3,000 MW exchange.

The Ministry of Electricity and Renewable Energy increased Egypt’s transmission grids from 2,364 kilometers of total length of 500 KV grid in 2014 to 8,250 kilometers by the end of 2024. By the end of 2024, Egypt had a total of 35 substations of 48,000 MVA capacity—compared to 18 substations of 9.800 MVA total 500 KV capacity in 2014. There are seven existing grid control centers, and the government is adding six more, two of which were completed in early 2025. A new $53 million control center, developed in the NAC, was completed in 2024. Egypt’s distribution grid needs an estimated EGP 25 billion ($492 million) to further upgrade its distribution networks. The GoE is working to modernize 47 distribution control centers around the country. There are 19 centers under construction—14 with Schneider Electric, one with General Electric, and four with the Japan International Cooperation Agency (JICA).

As part of the GoE’s efforts to regulate energy consumption and modernize the national grid, the Ministry of Electricity and Renewable Energy has been implementing a large-scale program to replace 38 million traditional electricity meters with smart prepaid meters. As of mid-2025, approximately 12 million smart meters have been installed across residential and commercial sectors, with installations ramping up through public-private partnerships and international support. The remaining 26 million meters are scheduled to be deployed by the end of 2029, as part of Egypt’s broader digital infrastructure strategy to improve billing accuracy, reduce energy losses, and enhance consumer control over electricity usage.

Part of Egypt’s Vision 2030 is to increase local content for large-scale projects. American businesses that bid on Egyptian energy projects should have a plan for “localization” or using local Egyptian content (labor, materials, sub-contractors, etc.) to the extent possible.

The New and Renewable Energy Authority (NREA), which falls under the Ministry of Electricity, plays a strategic role in implementing the government’s renewable energy plans. This has contributed to a reduction of 1.2 million tons of CO2 emissions annually. By the end of 2024, installed capacity from renewable energy was projected to reach 8,778 MW across 8,500 square kilometers. However, this goal was not reached. By the end of 2024, 7750 MW was installed across the country. The deficit was largely due to delays in commissioning a few large-scale wind and solar projects in the Red Sea and Western Desert regions. The Egyptian government’s renewable energy plan for 2015–2023 includes 3.2 gigawatts (GW) of government projects, including 1.25 GW under BOO mechanisms and 920 MW as independent power producers (IPPs).

Producing and using electric vehicles (EVs) is a GoE priority. As there is a surplus in electricity, the government is working with the private sector to make the sub-sector price competitive. For up to 22 KW, the GoE has set a selling price of 121 Egyptian piasters ($0.024) for distribution companies, and a tariff of 169 Egyptian piasters/kwh ($0.033) without the use of place occupancy fees and 189 Egyptian piasters/kwh. ($0.038) with the use of place occupancy fees. Over 50 KW, the price might reach 375 Egyptian piasters ($0.074). Despite these plans, hard currency shortages continue to hinder EV production in Egypt, limiting investments from major automotive firms.

Wind Energy

Egypt enjoys excellent wind along the Gulf of Suez with an average wind speed of 10.5 m/sec. It is just one of 38 countries in the world with a published National Wind Atlas. Egypt’s wind-generated power capacity is expected to reach 8 GW by 2025.

Since 2001, a series of large-scale wind farms with a total capacity of 1.5 GW were established in cooperation with Germany (KFW), Denmark (DANIDA), Spain (Siemens Gamesa), and Japan (JICA).

In the Gulf of Suez, a 540 MW project is under construction with another 580 MW project awaiting financing, and a feasibility study is underway for a 200 MW project in the West Nile. The Egyptian government recently allocated 7,845 square kilometers in the Gulf of Suez region and the Nile Banks for NREA to implement additional wind energy projects. There are projects to generate 1,125 MW and private foreign direct investment to generate 500 MW for a total of 1,625 MW. The 262.5 MW Ras Ghareb wind farm project near the Gulf of Suez was expanded in early 2024, increasing capacity by an additional 50 MW. Additionally, Lekela’s West Bakr Wind Farm in the Gulf of Suez, which follows the BOO (Build, Own, and Operate) model, is expected to generate 250 MW of clean energy.

The government is working on refurbishing and repowering NREA’s wind farms in Zaafarana and Gabal El Zeit with additional pipeline capacity. As a result, the upgraded Zaafarana project is now achieving 15 percent higher energy efficiency due to the refurbishment of some of the turbines. However, the refurbishment process is still ongoing and will eventually impact the 700 turbines on this farm.

Solar Energy

Egypt’s Solar Atlas states Egypt is considered a “sun belt” country with 2,000 to 3,200 kWh/m²/year of direct solar radiation. The sun shines 10-12 hours a day from north to south with few cloudy days.

The first solar thermal power plant was built in 2011 in Kuraymat. It has a total installed capacity of 140 MW with the solar share of 20 MW based on parabolic-trough technology that is integrated with a combined-cycle power plant using natural gas. The power plant was financed by the Global Environmental Facility (GEF) and the Japan Bank for International Cooperation (JBIC). A second solar thermal plant is under construction near Aswan with a projected capacity of 200 MW. A 10 MW power plant has been operating in Siwa since 2015. The 37.5 square kilometer Benban Solar Park in Egypt’s Western Desert was completed in 2019 with financing provided by the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and other international financial institutions. Composed of 32 individual plants, each producing 20-50 MW, and four substations, the Park generates almost 1.65 GW of power and is considered the third largest worldwide. It is expected to increase generation to reach 2.2 GW with a total investment of $4.6 billion. The latest price of buying solar-produced electricity is $1.8 cents/kWh with 25 percent payment in local currency and 75 percent payment in foreign currency. This price went down from 6-7 cents/kWh, making solar energy more affordable.

Hydrogen

The Ministry of Electricity and Renewable Energy and the Ministry of Petroleum and Mineral Resources 2024 hydrogen strategy was developed by Advisian Company and funded by EBRD. The strategy proposes two development scenarios: The Central Scenario aims to generate 20 GW by 2030 and 74 GW by 2040, through $26 billion investment. This will represent 6 percent of the global hydrogen trade market. The ambitious Advanced Scenario aims to generate 8.5 percent of the global hydrogen trade market. However, Egypt’s inability to meet its existing financial obligations remains a significant hurdle to large-scale investment in new projects.

Projects Under Study

• Ataqaa pump storage power plant will have eight units, each producing 300 MW, with a total capacity of 2,400 MW ($2.9 billion).
• North Luxor pump storage power plant with a capacity of 2,000 MW ($2.45 billion).
• Armant pump storage power plant with a capacity of 2,000 MW ($2.5 billion).

Leading Sub-sectors

• Hydrogen
• Wind turbines
• Wind towers
• Photovoltaic panels and related technologies
• Concentrating solar power equipment and technologies
• Transmission grids
• Green energy
• Interconnectors
• Energy efficiency
• Electric vehicles
• Water desalination
• Hydrogen electrolyzer equipment and storage systems
   

Opportunities

In 2012, the Egyptian government approved the Egyptian Solar Plan, which includes adding 3.75 GW of solar energy by 2027: -3 GW concentrating solar thermal power (CSP) and 750 MW photovoltaics (PV). The Ministry of Electricity and Renewable Energy has signed nine MOUs worth $600 million for solar and wind projects in Egypt. According to the Wind and Solar Atlas, the East and West Nile areas have the potential to produce around 32,500 MW of wind power and 54,800 MW of solar power. Egypt is also considering financing options to conduct feasibility studies for the following projects:

• Solar-thermal power plant using CSP technology for both electricity generation and water desalination.
• Solar-thermal power plants for industrial purposes.
• Introducing PV-integrated seawater desalination plants as part of renewable-driven water security projects.
• Designing a technical-financial mechanism to promote the use of solar water heaters in Egypt’s residential sector.
• Local manufacturing of renewable energy equipment.
   

For more information on the Energy sector, contact:

Dina Bissada
Commercial Specialist
U.S. Embassy Cairo