The European Union and Egypt have taken a major step towards deepening their strategic partnership in renewable energy through a financing package worth up to €690m aimed at modernising and expanding Egypt’s electricity transmission network.
The package combines a €600m loan from the European Investment Bank’s development arm, EIB Global, with up to €90m in grants from the European Commission.
The initiative is designed to support Egypt’s ambitious clean energy transition and strengthen the country’s ability to integrate large-scale renewable energy projects into the national grid.
The investment will help Egypt connect up to 22 gigawatts (GW) of renewable energy capacity by 2030, significantly enhancing the country’s electricity infrastructure and accelerating its transition towards sustainable energy sources.
The planned capacity is expected to generate enough electricity to power approximately 10 million households, contributing to both energy security and climate objectives.
The project aligns with Egypt’s strategy to increase the share of renewable energy in its energy mix and position itself as a regional hub for green energy production and exports.
It also supports broader EU-Egypt cooperation under their strategic partnership framework, which prioritises sustainable development, energy security, and climate action.
Officials said the financing package will facilitate the integration of solar and wind projects currently under development while improving the reliability and efficiency of the national electricity network.
The initiative is also expected to attract additional private-sector investment into Egypt’s growing renewable energy sector, creating new opportunities for economic growth and job creation while supporting the country’s long-term decarbonisation objectives.
