As part of its ongoing efforts to optimize the use of renewable energy sources, Egypt is advancing a comprehensive strategy aimed at transforming its energy landscape. These efforts include maximizing the potential of solar, wind, and hydropower, as well as expanding green hydrogen projects.
A report published by the Cabinet’s Media Center, coinciding with the International Clean Energy Day, refelcted on Egypt’s ambitious approach to clean energy transition. The report highlights Egypt’s position as a regional leader in the clean energy sector, showcasing its efforts to integrate renewable energy into its national grid and attract global investments.
According to the International Renewable Energy Agency (IRENA), Egypt ranked first in the Arab world in 2023 in terms of renewable electricity generation capacity, with a total of 6,709 MW. This surpasses the capacities of the UAE (6,035 MW), Morocco (4,105 MW), Saudi Arabia (2,988 MW), and others in the region. The country’s total renewable energy capacity, including solar, wind, and hydropower, reached 7,633 MW in 2024, as reported by Egypt’s Ministry of Electricity and Renewable Energy.
The report also highlighted Egypt’s progress on the international stage. The country has moved up five places in the “Ernst & Young” Renewable Energy Attractiveness Index, ranking 34th in June 2024 compared to 39th in March 2015. Additionally, Egypt advanced six spots in the World Economic Forum’s Energy Transition Index, climbing to 75th in 2024 from 81st in 2018.
Fitch Ratings pointed out that Egypt’s energy market’s potential of continued growth thanks to robust renewable energy initiatives and private sector investments. The agency forecasts that non-hydro renewable sources will be the fastest-growing sector.
The International Energy Agency (IEA) affirmed that Egypt has recognized the opportunities provided by renewable energy and is translating its vision into reality with a robust strategy for sustainable energy. Egypt’s renewable energy projects reflect its determination to make this vision a reality.
Egypt’s Sustainable Energy Strategy aims to increase the share of renewables in its electricity mix to 42% by 2030, with a target of 60% by 2040. By 2024, the country had installed 7,633 MW of renewable energy capacity, with plans to reach 10,000 MW by the end of 2025. Solar energy capacity grew to 2,611 MW in 2024, up from just 140 MW in 2013/2014, marking a nearly 19-fold increase. Wind energy capacity reached 2,190 MW in 2024, up from 550 MW in 2013/2014, a fourfold increase. Hydropower capacity stood at 2,832 MW, showing a 1.1% increase from 2013/2014.
A key element of Egypt’s energy strategy is its National Low-Carbon Hydrogen Strategy, launched in August 2024. This initiative will diversify Egypt’s clean and sustainable energy sources and help reduce carbon emissions. The strategy will add $18 billion to Egypt’s GDP by 2040 and create more than 100,000 new jobs, while also securing 5-8% of the global hydrogen market.
The report also highlighted Egypt’s green hydrogen projects, noting the signing of 30 memorandums of understanding to localize green hydrogen production in the Suez Canal Economic Zone. Fourteen of these agreements have been activated, with 12 converted into framework agreements. These projects are with production capacity of 18 million tons of green hydrogen annually, with an estimated investment of $64 billion.
The report also showcased Egypt’s major clean energy projects, including the Benban Solar Park with a capacity of 1,465 MW, the Gebel El-Zeit Wind Farm with a capacity of 580 MW, and the Abydos 1 Solar Power Station with a capacity of 500 MW.
Additionally, Egypt’s “NOFEE” program aims to phase out traditional power plants with a combined capacity of 5,000 MW, having already decommissioned 1,200 MW. The program also seeks to attract private sector investments worth $10 billion to add 10,000 MW of renewable energy capacity by 2028. So far, projects with a combined capacity of 4,200 MW have been agreed upon, with $3.9 billion in financing secured by the end of 2024.
