By: State information service of Egypt

Egypt plans to raise investments in the electricity and renewable energy sector to EGP 136.3 billion ($2.8 billion) in the 2025/26 fiscal year, nearly doubling the EGP 72.6 billion targeted in 2024/25, the Ministry of Planning has said in a recent report.

Public investments will account for 73 per cent of the total investments in the sector, while private investments will contribute 27 per cent. State holding companies and the public business sector represent 45 per cent of the planned public spending.

The plan targets increasing the sector’s output to EGP655.6 billion in 2025/26 and to EGP 984.5 billion by 2028/29, with annual growth of 15–20 per cent. The sector product is expected to reach EGP 285 billion in 2025/26 and EGP 430 billion by 2028/29, according to the statement.

Projects include expanding transformer substations in North Sinai, 10th of Ramadan and Zahraa Madinat Nasr, completing the relocation of facilities conflicting with road projects, converting overhead lines into underground cables, and rehabilitating the Matariya station. The plan also targets adding 1,200 megawatts of thermal generation capacity, nine 500 kV substations, and reducing electricity loss to 16.5 per cent from 19.6 per cent in 2023/24.

Electricity exports are set to rise to 3,900 megawatts in 2025/26, supported by projects with Jordan (550 MW), Libya (150 MW), and Sudan (upgraded to 300 MW), along with a 3,000 MW interconnection with Saudi Arabia. Egypt also aims to activate agreements with Cyprus and Greece to lay a 1,650km undersea cable with a capacity of 1,000 MW in its first phase.

Renewables will make up about 20 per cent of power generation in 2025/26, up from 12 per cent in 2023/24. Land allocated for solar and wind projects will expand to 2,900 sq km, targeting 6,470 MW of capacity.

The plan encourages private sector participation by offering serviced land, streamlining permits, and facilitating concessional finance.

It also features donor-funded projects, including transformer stations and overhead lines worth EGP830 million under a €54 million debt swap with Germany.