Egypt has revealed a major investment of 136.3 billion Egyptian pounds, equal to about 2.8 billion dollars, for its electricity and renewable energy sector in the 2025 to 2026 fiscal year. This plan, announced by the Ministry of Planning, Economic Development and International Cooperation, aims to double spending from the previous year, push renewable energy growth, strengthen the national grid, and position the country as a key energy hub in the region.
Record Jump in Funding
This new budget nearly doubles the 72.6 billion Egyptian pounds set for 2024 to 2025. Officials say the increase shows a strong commitment to meet growing energy needs and support economic progress.
About 73 percent of the funds will come from public sources. Holding companies and the public business sector will handle 45 percent of that share. The rest will involve private partners, creating a mix of government and business efforts to build better energy systems.
Experts point out that this level of spending aligns with global trends toward cleaner power. Recent deals, like a large solar farm project with international firms, add to the momentum. For example, a consortium plans to invest 220 million dollars in a new solar panel and battery storage factory in Egypt, set to produce enough for regional needs.
Push for More Renewable Energy
The plan sets a clear goal to raise renewable energy’s share in the total power supply to nearly 20 percent by 2025 to 2026. That is up from about 12 percent in 2023 to 2024. Wind and solar projects will play a big role in this shift.
Egypt aims to reach a combined capacity of 6,470 megawatts from wind and solar sources. This fits into longer term targets, such as hitting 42 percent renewables by 2030, which could save billions in fuel costs each year.
Recent events back this focus. In late 2023, Egypt signed a deal with China for a 10 gigawatt solar farm, expected to cut carbon emissions by 14 million tons yearly. Such steps help reduce reliance on gas and oil, which made up 90 percent of the country’s electricity in recent years.
To track progress, here is a quick look at key renewable targets:
| Year | Renewable Share Target | Key Capacity Additions |
|---|---|---|
| 2023/2024 | 12% | Baseline from existing wind and solar |
| 2025/2026 | 20% | 6,470 MW wind and solar |
| 2030 | 42% | Major expansions in clean energy projects |
Upgrades to Power Capacity and Grid
Egypt plans to boost total electricity production to around 235 billion kilowatt hours in 2025 to 2026. That marks a 3 percent rise from current forecasts. New thermal plants will add 1.2 gigawatts of capacity, while renewables get more support.
The grid will see big improvements to handle demand. Projects include expanding substations and converting overhead lines to underground cables. These changes aim to cut energy losses and improve reliability.
Logical reasoning suggests these upgrades are vital as the population grows and industries expand. Without them, blackouts could slow economic gains. Recent investments, like 1.5 billion dollars spent on transmission networks from 2017 to 2020, show Egypt’s track record in this area.
Ambitious Performance Goals
The strategy includes specific targets to measure success. Electricity access should reach 99.8 percent of the population. Energy losses in networks will drop to 16.5 percent from 19.6 percent.
Other goals cover adding nine high voltage transformer substations and increasing thermal power by 1,200 megawatts. These steps will help meet rising demand driven by urban growth and new factories.
Building Regional Energy Ties
Egypt wants to become a central player in regional energy trade. The plan boosts grid connections to 3,900 megawatts by 2025 to 2026, up from 780 megawatts now. This will allow more electricity exports to neighbors.
Stronger ties could lead to shared projects, like desalination plants powered by renewables. China’s recent pledge of 1 billion dollars in Egypt for energy and water initiatives highlights growing international interest.
This move makes sense amid global shifts. As countries cut fossil fuels, Egypt’s location offers chances to link African, Middle Eastern, and European grids.
Looking Ahead to a Greener Future
Overall, this plan positions Egypt for sustainable growth. It tackles climate challenges while creating jobs in clean tech. By 2040, renewables could make up over 60 percent of the power mix, based on current strategies.
Experts predict these investments will attract more foreign funds and tech know how. For instance, delays in nuclear projects have shifted focus to faster solar and wind builds.
What do you think about Egypt’s energy push? Share your thoughts in the comments and spread the word to friends interested in global green trends.
