Egypt plans to invest EGP 136.3bn in its electricity and renewable energy sector for the fiscal year (FY) 2025/26, according to a plan outlined by the Ministry of Planning, Economic Development and International Cooperation. The ministry said the total targeted investments represent a significant increase from the EGP 72.6bn targeted for FY 2024/25 and the EGP 95.8bn in actual investments recorded in FY 2023/24. Minister of Planning and International Cooperation Rania Al-Mashat stated that the plan aims to enhance Egypt's energy capacity and increase its reliance on renewable sources, with key objectives including expanding electricity coverage to 99.8% of the population by the end of June 2026 and increasing electricity interconnection capacity to 3,900 megawatts to strengthen Egypt's position as a regional energy hub. "The electricity and renewable energy sector is responsible for providing electrical energy to all users in various productive and consumer fields," Al-Mashat said. "This contributes to achieving sustainable development goals and continuously improving the level of services provided to citizens." She added that the sector's effectiveness depends on its ability to diversify energy sources, benefit from renewable resources, and rationalise the use of traditional resources to meet future energy demands. Investment Breakdown and Targets According to the ministry's report, public investments will constitute about 73% of the total EGP 136.3bn planned for the sector in FY 2025/26, with private investments making up the remaining 27%. The plan aims to increase the output of the electricity and renewable energy sector to EGP 655.6bn, with a projected rise to EGP 984.5bn by FY 2028/29. The sector's product is targeted to reach approximately EGP 285 bn in FY 2025/26 and grow to around EGP 430bn by FY 2028/29. Key quantitative targets for the plan year include increasing the average annual generated electrical energy to about 235 billion kWh, adding 1,200 megawatts of thermal generation capacity, and reducing electricity losses to 16.5%. Key Projects and Regional Hub Ambitions The plan includes a programme to enhance Egypt's role as a regional energy hub by increasing the capacity of its electricity interconnection networks from the current 780 megawatts to 3,900 megawatts. This involves raising the capacity of the interconnection project with Sudan from 80 to 300 megawatts and completing the implementation of the 3,000-megawatt direct current interconnection project with Saudi Arabia. Additionally, the plan includes activating memorandums of understanding with Cyprus and Greece for electrical interconnection via a 1,650 km submarine cable. Domestically, targeted projects include completing the relocation of electrical facilities that conflict with road projects, expanding the Mas'aid and Baghdad 220 kV transformer substations in North Sinai, and finalising the expansion of several other electrical transformer stations. Transition to Renewable Energy and Private Sector Role A central goal of the plan is to diversify energy sources and transition towards renewable energy. The ministry aims to increase the share of renewable energy to nearly 20% of the energy mix in 2025/2026, up from about 12% in 2023/2024.This will be achieved by increasing investments in solar and wind energy and expanding land allocated for renewable energy production. The development plan also aims to incentivise private sector participation in energy projects, particularly in renewables, by providing serviced land, regularly issuing and renewing licences for electricity distribution and production, and offering technical and financial support through government initiatives and development partners. International Cooperation The plan highlights several projects funded by international partners. Three projects to boost energy capacity, with investments of EGP 830 million, are being implemented as part of a debt swap agreement with Germany's Development Bank (KfW). Other projects include technical support for the energy sector in cooperation with the French Development Agency (AFD), with investments of EGP 70 million across two initiatives, and the expansion of two electrical transformer stations with investments of EGP 125m as part of a grant provided by the European Union. The ministry also noted that its "NWFE" country platform has mobilised EGP 4 billion in development financing over two and a half years for the private sector, supporting projects with a capacity of 4.2 gigawatts and contributing to Egypt's green transition goals.
