Al-Mashat: Egypt Invests EGP 6.7 Billion to Boost Renewable Energy

Egypt is making significant strides in its renewable energy transition with the allocation of EGP 6.7 billion in public investments to integrate four major renewable energy projects into the national electricity grid by the summer of 2025. The initiative, part of the country’s "NWFE" program, aims to enhance grid stability and expand the supply of clean electricity.

Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, confirmed that these projects fall under the energy pillar of the "NWFE" program and represent a crucial step in Egypt’s commitment to sustainable energy. She highlighted that the investments have been secured through the 2024/2025 economic and social development plan, reinforcing efforts to modernize the grid and accommodate the increasing share of renewable energy.

A new progress report (Report No. 2) on the "NWFE" program, launched under the patronage of Prime Minister H.E. Dr. Mustafa Madbouly, detailed the latest developments in Egypt’s energy transition. The report outlined that the first urgent phase of the grid expansion will integrate 3,700 megawatts of solar energy, along with 2,840 megawatt-hours of battery storage. These projects are critical in strengthening the national electricity network, reducing outages, and securing energy supplies.

The upcoming renewable energy projects set for connection include the EMIYA station in Southeast Benban (1,000 megawatts), the Scatec station in Nagaa Hammadi (1,000 megawatts), the Masdar station in El-Wahat (900 megawatts), and a 500-kilovolt transformer station in the 10th of Ramadan in Sharqia Governorate. These projects will significantly contribute to Egypt’s renewable energy capacity and help advance its energy transition strategy.

Dr. Al-Mashat emphasized that these projects align with the directives of Egypt’s leadership to expand green energy initiatives, strengthen the electricity and renewable energy sectors, and drive a transformation in the country’s energy landscape. The government has set ambitious targets under the National Integrated Sustainable Energy Strategy, aiming to increase renewable energy’s share to 42% of the energy mix by 2030 and 60% by 2040. This shift is being achieved through close cooperation with the private sector, which plays a vital role in boosting investments and ensuring efficient implementation.

The report also revealed that the "NWFE" program aims to add 10 gigawatts of renewable energy capacity with total investments of $10 billion while gradually phasing out 5 gigawatts of fossil fuel power generation by 2028. The program also focuses on enhancing the electricity grid and securing necessary financial investments to support national infrastructure development.

As part of this initiative, agreements have been signed between the Egyptian Electricity Transmission Company and leading private-sector companies, including ACWA Power, Masdar, Infinity, Scatec, EMIYA Power, Orascom, and Hassan Allam Utilities, securing a total contracted capacity of 4.2 gigawatts.

Dr. Al-Mashat highlighted the success in mobilizing $4 billion in development financing for private-sector projects. This funding has been secured from key international partners, including the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), African Development Bank (AfDB), British International Investment (BII), OPEC Fund for International Development, Japan International Cooperation Agency (JICA), Green Climate Fund (GCF), and DEG (German Development Bank).

The report also detailed the progress made in phasing out outdated thermal power plants, with 1,200 megawatts already decommissioned out of the 5,000 megawatts targeted under the program. Additionally, financing has been secured for seven renewable energy projects, covering both wind and solar power.

With these strategic investments and partnerships, Egypt is positioning itself as a regional leader in clean energy development, reinforcing its commitment to sustainability, economic growth, and long-term energy security. Dr. Al-Mashat affirmed that the government remains dedicated to accelerating the green transition and ensuring that renewable energy plays a central role in the country’s future energy landscape.