Egypt and the European Union have taken another significant step in strengthening their cooperation on renewable energy through a financing package worth up to €690 million aimed at modernising and expanding Egypt’s electricity infrastructure. The funding combines a €600 million loan from the European Investment Bank’s development arm, EIB Global, with up to €90 million in grants provided by the European Commission. The initiative is designed to accelerate the development of a stronger clean energy grid, supporting Egypt’s long-term renewable energy ambitions while enhancing the country’s electricity transmission capabilities.
The project will be implemented under the leadership of the state-owned Egyptian Electricity Transmission Company (EETC) and is intended to enable the integration of 22 gigawatts (GW) of renewable-energy capacity into the national network by 2030. This volume of renewable generation is expected to provide enough electricity to serve approximately 10 million households. By reinforcing the clean energy grid, the investment aligns with Egypt’s national priorities to expand renewable energy deployment, improve electricity infrastructure and strengthen its position as a regional energy hub. The initiative also contributes to the objectives of the EU-Egypt Strategic and Comprehensive Partnership by promoting investment mobilisation, advancing renewable energy cooperation and supporting the transition toward 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,” he added.
The clean energy grid initiative is among the first major operations launched under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, (T-MED), which serves as a flagship programme of the Pact for the Mediterranean. The framework is intended to promote renewable energy and clean-tech cooperation between the European Union and its southern Mediterranean partners.
European Commissioner for the Mediterranean Dubravka Šuica said, “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.”
