European Grants Worth $150Mn Boost Egypt’s Green Energy, Power Grid Expansion

Egypt’s green energy sector has received a fresh financing boost reflecting growing European confidence in the country’s energy transition, following the signing of a new package of European grants worth nearly $150 million.

The grants provide direct support for upgrading electricity networks and expanding renewable energy capacity in Egypt, alongside dedicated financing for a green ammonia project in Ain Sokhna, a move that strengthens Cairo’s ambition to position itself as a regional hub for clean energy.

The funding was announced during the participation of Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat at the European Union conference titled *“The Future of Sustainable Energy in Egypt 2040: Cooperation for Shared Prosperity.”* The event was attended by Minister of Electricity and Renewable Energy Mahmoud Esmat, senior European officials, and representatives of international financial institutions.

According to a statement reviewed during the conference, an EU grant agreement managed by the European Investment Bank was signed for €90 million ($107.26 million). The funding targets increased investment in Egypt’s electricity grids and aims to enhance the integration of renewable energy projects into the national grid, supporting the absorption of new generation capacities planned in the coming years.

A second grant worth €35 million ($41.71 million) was also signed in favor of Norway-based Scatec to support the green ammonia project in Ain Sokhna. The project is considered one of Egypt’s flagship initiatives in the green fuels sector, reflecting the government’s strategy to localize high value-added clean energy industries and link them to global trade corridors.

Data from the Ministry of Planning indicate that the combined value of the two grants amounts to around $150 million, representing a significant addition to concessional financing and technical support packages aimed at accelerating Egypt’s energy transition.

Al-Mashat said that the shift toward sustainable, secure, and efficient energy systems is a key driver of Egypt’s comprehensive development agenda. She stressed that green energy is a central pillar of the country’s national development narrative, supporting sustainable economic growth, enhancing competitiveness, and advancing climate action and emissions reduction goals.