EU Backs Egypt’s Renewable Energy Expansion With €690 Million Grid Investment
The European Union has reinforced its clean energy partnership with Egypt through a €690 million investment package aimed at modernising the country’s electricity transmission network and accelerating the integration of renewable energy into the national grid.
The financing package comprises a €600 million loan from the European Investment Bank’s development arm, EIB Global, along with €90 million in grants from the European Commission. The funds will support major upgrades to Egypt’s electricity infrastructure, enabling the grid to accommodate growing renewable energy capacity and improve overall energy efficiency.
The project is expected to help Egypt integrate up to 22 GW of renewable energy capacity by 2030, enough to supply electricity to an estimated 10 million households. It forms a key part of the country’s strategy to expand clean energy generation, strengthen energy security and position itself as a regional energy hub linking Africa, Europe and the Mediterranean.
The initiative also supports the objectives of the EU-Egypt Strategic and Comprehensive Partnership, which seeks to deepen cooperation in sustainable investment, renewable energy development and green economic growth. It is among the first major projects launched under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), designed to promote renewable energy deployment and clean technology collaboration across the Mediterranean region.
The investment comes as Egypt accelerates efforts to increase the share of renewable sources in its energy mix. The government has set an ambitious target of generating 45 per cent of its electricity from renewable sources within the next two years, supported by large-scale investments in solar, wind and energy storage projects.
Earlier this month, Egypt also announced additional funding for the expansion of its national electricity grid to strengthen infrastructure and accommodate future renewable energy projects. The move is part of a broader strategy to modernise the power sector, meet rising domestic electricity demand and enhance the country’s role in regional electricity trade.
With growing support from international financial institutions and development partners, Egypt is emerging as a key destination for renewable energy investments and a strategic player in the global transition towards cleaner and more sustainable energy systems.
