Egypt’s Minister of Planning, Dr. Rania Al-Mashat, met with Dr. Mahmoud Issa, Minister of Electricity and Renewable Energy, to discuss the investment plan for the electricity and renewable energy sector for the upcoming fiscal year 2025/2026. The meeting focused on the sector’s strategic priorities, development goals, and investments needed to foster economic growth and sustainability.
A Key Pillar for Economic Development
Dr. Rania Al-Mashat highlighted the critical role of the electricity and renewable energy sector in driving Egypt’s economic development. She emphasized that energy is the backbone of all development plans, powering industrial, service, and tourism projects, supporting the development of new urban areas, and meeting the daily needs of citizens. She also underscored the strong correlation between the growth of the electricity sector and the nation’s GDP, particularly within the manufacturing sector.
Dr. Al-Mashat also shared the government’s vision for the sector, which focuses on increasing the efficiency and sustainability of electricity production to keep pace with technological advancements and global trends. This aligns with Egypt’s long-term goal of increasing the share of renewable energy, aiming for 42% of total installed capacity from renewable sources by 2030. This ambition reflects Egypt’s commitment to transitioning to clean energy and reducing reliance on unsustainable energy sources.
Investment Focus and Strategic Objectives
The investment plan for the electricity and renewable energy sector for FY 2024/2025, valued at approximately EGP 99.9 billion, covers 48 projects aimed at improving service quality and expanding infrastructure. Dr. Al-Mashat detailed the strategic goals for FY 2025/2026, which include improving electricity services for citizens, enhancing international competitiveness, increasing private sector participation, and supporting Egypt’s green energy transition. Additionally, the plan focuses on reducing energy consumption waste and mitigating climate change impacts by shifting toward clean energy solutions.
Building Infrastructure and Attracting Investment
Dr. Mahmoud Issa, Minister of Electricity and Renewable Energy, noted that the Egyptian government has undertaken a complete overhaul of the energy infrastructure, including legislative reforms designed to attract private sector investment and financing for renewable energy projects. He emphasized the growing role of the private sector, both domestic and international, in expanding Egypt’s solar and wind energy capacities.
By the end of 2026, Egypt aims to reach 12,000 MW of renewable energy capacity, including 3,350 MW from storage batteries. The government’s long-term target is to achieve 20,000 MW of renewable energy by 2029, alongside 3,600 MW from clean nuclear energy and 2,400 MW from pumped storage. These projects will not only reduce carbon emissions but also create new job opportunities and drive economic growth, contributing to Egypt’s goal of reducing its dependence on fossil fuels.
Egypt as a Regional Energy Hub
Dr. Issa also shared the ministry’s strategy to transform Egypt into a regional energy hub, leveraging its strategic location and expanding energy infrastructure projects. He outlined several key electricity interconnection projects, including ongoing connections with neighboring countries such as Sudan, Libya, and Jordan, as well as a major interconnection project with Saudi Arabia, which is expected to be operational this year.
In addition, Egypt’s collaboration with the European Union on electricity interconnection projects, including connections with Greece and Italy, aims to achieve regional energy integration. These projects will facilitate the transmission of clean electricity across borders, ensuring energy security and sustainability for the entire region.
Supporting Sustainable Energy in Africa
Dr. Issa emphasized Egypt’s role in enhancing cooperation with African countries to promote energy integration, share technical expertise, and support renewable energy projects across the continent. This collaboration will help meet the growing demand for energy in Africa while ensuring that it is provided in a sustainable and equitable manner.
The meeting also touched upon key aspects of the 2025/2026 development plan, including its integrated approach to climate action and green economic transformation. Priority areas discussed included optimizing the use of renewable energy sources, boosting investment in green energy, and turning Egypt into a regional energy nexus. Additionally, the meeting explored how to improve electricity distribution services, ensuring that all citizens receive high-quality, competitive energy, which is vital for supporting sustainable food security, industrial, and urban development projects.
This comprehensive approach to energy development reflects Egypt’s commitment to long-term economic growth, sustainability, and regional leadership in clean energy solutions.
