Egypt and the European Union are deepening their strategic partnership in the field of renewable energy with a financing package of up to €690 million to upgrade and expand the Egyptian electricity network. The package combines a €600 million loan from the European Investment Bank’s development arm, EIB Global, with up to €90 million in grants by the European Commission.
Led by the state-owned Egyptian Electricity Transmission Company (EETC), this project aims to integrate a total of 22 gigawatts (GW) of renewable-energy capacity into the grid by 2030, enough to supply around 10 million households with electricity.
The investment supports national energy priorities and the ambition to expand renewable energy, strengthen electricity infrastructure and enhance the country’s role as a regional energy hub. It also advances the objectives of the EU-Egypt Strategic and Comprehensive Partnership, including investment mobilisation, renewable energy cooperation and the transition to a more sustainable, secure and competitive energy system.
“This agreement reflects the strength of the partnership between Egypt and the European Union and our shared determination to advance the green transition,” said Badr Abdelatty, Minister of Foreign Affairs, International Cooperation and Egyptian Expatriates. “Together with the EIB and the EU, we are taking an important step to modernise our electricity network, strengthen energy security and create new opportunities for sustainable growth. This is the kind of practical cooperation that brings real benefits to our economy and our people.”
The project is one of the first concrete operations under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, (T-MED), a flagship of the Pact for the Mediterranean, to support renewable energy and clean-tech cooperation between the European Union and its southern Mediterranean partners.
“The Pact for the Mediterranean keeps delivering,” said European Commissioner for the Mediterranean Dubravka Šuica. “Under its newly launched flagship initiative, T-MED, today we presented a major EU-supported project to strengthen and expand Egypt’s electricity infrastructure. This will reinforce Egypt’s role in the regional energy markets and create major business opportunities for local and European companies. It is another testimony of our shared commitment to sustainable growth, energy security and long-term prosperity in the Mediterranean.”
“This project is a very concrete example of what the partnership between Egypt and the European Union can achieve,” said EIB Vice-President Gelsomina Vigliotti. “By working together, Egypt, the EU and the EIB are supporting the expansion and modernisation of the electricity network, unlocking more renewable energy and strengthening the country’s role as a regional energy hub. For the EIB, this is about backing sustainable growth, greater energy resilience and better opportunities for people and businesses across the country.”
The programme includes the construction of state-of-the-art substations and the installation of advanced transmission lines to integrate solar and wind power generated in the Red Sea and Gulf of Suez regions into the national grid. The investments are expected to reduce transmission losses, improve electricity reliability, strengthen energy security and support sustainable economic development. They will also contribute to regional electricity cooperation and future clean-energy trade and integration across the Mediterranean.
The EU financing package represents 44% of the total cost of the programme, with the remaining financing provided by EETC’s own funds.
