By: Utilities Middle East

Egypt and the European Union (EU) have strengthened their renewable energy partnership through a financing package of up to €690m aimed at upgrading and expanding Egypt’s national electricity network.

The package includes a €600m loan from the European Investment Bank’s development arm, EIB Global, along with up to €90m in grants from the European Commission.

Led by the Egyptian Electricity Transmission Company (EETC), the project will support the modernisation of Egypt’s power infrastructure and help integrate up to 22 gigawatts (GW) of renewable energy capacity into the national grid by 2030.

The planned renewable energy integration is expected to provide an electricity supply equivalent to around 10 million households.

The investment forms part of broader efforts to expand renewable energy generation, strengthen electricity infrastructure and enhance Egypt’s role as a regional energy hub.

The initiative also supports the objectives of the EU-Egypt Strategic and Comprehensive Partnership, which focuses on investment mobilisation, clean energy cooperation and the development of a more sustainable and secure energy system.

Egypt’s Minister of Foreign Affairs, International Cooperation and Egyptian Expatriates, Badr Abdelatty, said the agreement reflects cooperation between Egypt and the EU to support the green transition and strengthen energy security.

He added that modernising the electricity network would help create opportunities for sustainable economic growth.

European Commissioner for the Mediterranean Dubravka Šuica said the project represents one of the first major operations under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), launched as part of the Pact for the Mediterranean.

The initiative aims to expand renewable energy and clean technology cooperation between the EU and southern Mediterranean countries.

The EU said the investment would support Egypt’s position in regional energy markets while creating opportunities for both local and European companies involved in clean energy development.

The project comes as Egypt continues to attract investment in renewable energy, including large-scale solar, wind and green hydrogen developments.