Egypt Announces 30 GW Renewable Energy Expansion

Egypt has unveiled plans to increase its renewable energy capacity by 30 GW, targeting substantial growth in solar, wind, and green hydrogen projects. This move aims to diversify the energy mix, reduce fuel costs, and meet the country’s goal of 42 percent renewable energy by 2035.

By Giulia Interesse

Egypt’s energy sector has traditionally been reliant on fossil fuels, with natural gas and oil making up the majority of its electricity generation. Despite some progress in integrating renewable sources such as wind and solar, the overall share of renewables in Egypt’s energy mix remains relatively modest.

In a significant shift towards cleaner energy, Egypt has announced plans to add 30 gigawatts (GW) of new renewable energy capacity. This ambitious expansion, driven by the Ministry of Electricity and Renewable Energy under Minister Mahmoud Esmat, is set to diversify the country’s energy mix and reduce its dependence on traditional, carbon-intensive fuels.

In a recent meeting with Prime Minister Mostafa Madbouly, Minister Esmat outlined this comprehensive expansion plan, which includes notable investments in green hydrogen production. Additionally, Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat provided updates on 18 ongoing renewable energy projects.

The Egyptian Council of Ministers has approved a significant proposal from Dubai-based AMEA Power to integrate 2 GW of renewable energy into Egypt’s grid by the summer of 2025. This proposal includes a 500 MW expansion of the Abydos solar project and the addition of 1.5 GW from new solar and wind projects. Specifically, the development will involve 1 GW of new solar capacity and the 500 MW Amunet wind farm located in Ras Ghareb. These projects will also incorporate a battery energy storage system (BESS) to improve energy management.

Background on Egypt’s energy landscape

Egypt, the most populous country in North Africa and the Arab world, faces significant challenges due to its rapidly growing population. This demographic surge has increased energy demand considerably, straining the country’s energy infrastructure despite recent offshore natural gas discoveries. The 2014 fuel shortages highlighted these pressures, revealing that Egypt’s electricity generation capacity was struggling to meet the rising demand.

The energy sector is vital to Egypt’s economy, contributing around 13 percent to its gross domestic product (GDP). To address these challenges, Egypt has developed the Integrated Sustainable Energy Strategy (ISES), which sets out a plan for diversifying energy sources through 2035. This strategy focuses on boosting renewable energy and improving energy efficiency, supported by substantial upgrades and maintenance across the power sector.

As of 2023, the total renewable energy capacity in Egypt amounted to 6,709 megawatts (MW). The ISES aims for renewable energy to make up 42 percent of the electricity mix by 2035.

Given its favorable conditions for renewable energy—such as strong solar and wind potential—Egypt is well-positioned to meet these targets. The New and Renewable Energy Authority (NREA), established in 1986, has been instrumental in advancing wind and solar projects. Other institutions, including those under the Egyptian Electricity Holding Company (EEHC), are also working to develop biomass energy.

An analysis by the International Renewable Energy Agency (IRENA) indicates that Egypt has the potential to generate 53 percent of its electricity from renewables by 2030, a substantial increase from the 9 percent share recorded in 2014.

2035 and 2040 targets

To address the challenges of energy dependence and environmental impact, Egypt has set ambitious targets for increasing its renewable energy capacity. The country aims to achieve 42 percent of its electricity from renewable sources by 2035 and 58 percent by 2040. This strategic shift will involve a significant expansion in various types of renewable energy, with solar, wind, and hydropower respectively contributing 25 percent, 14 percent, and 2 percent of total electricity generation by 2035.

The Islamic Development Bank (IsDB) has been instrumental in supporting this transition, having funded nearly 4,000 megawatts of energy projects—representing about 14 percent of the total increase in Egypt’s energy production from 2012 to 2022. The bank’s investments, particularly in solar power, highlight its role in advancing Egypt’s shift toward more sustainable energy sources.

Egypt has seen a significant boost in solar energy, with its capacity soaring to 1,724 MW. Thanks to its advantageous location, which receives over 2,000 kWh/(m² per year) of solar irradiance, the country is well-positioned for extensive photovoltaic (PV) and concentrated solar power (CSP) projects. Investments in large-scale solar farms, such as the Benban Solar Park, are pivotal to this expansion, highlighting Egypt’s commitment to harnessing its abundant solar resources.

In terms of wind energy, Egypt is making significant progress, with its capacity reaching 1,643 MW. The Gulf of Suez and Red Sea regions, renowned for their strong and consistent wind patterns, are central to this growth. These optimal locations are crucial for establishing wind farms and further diversifying Egypt’s renewable energy portfolio.

Lastly, hydropower stands a cornerstone of Egypt’s energy strategy, with a substantial capacity of 2,832 MW. The Aswan High Dam, a historic symbol of Egypt’s expertise in harnessing water resources, has long been central to this effort, significantly bolstering the national grid. Looking ahead, Egypt aims to enhance its hydropower capabilities by optimizing existing infrastructure and exploring new projects to further strengthen this crucial energy source.

Hydrogen production and other innovation

In addition to expanding traditional renewable sources, Egypt is exploring advanced technologies like hydrogen production. Hydrogen, especially green hydrogen produced from renewable energy sources, is seen as a key component of Egypt’s future energy strategy. It has the potential to serve as a clean fuel for industries and transportation, complementing the country’s renewable energy efforts.

The integration of energy storage solutions and improvements to the electrical grid are also critical to Egypt’s renewable energy strategy. Energy storage systems, such as batteries, will help manage the intermittent nature of renewable sources like solar and wind. Upgrading the grid infrastructure will ensure that the increased renewable capacity can be efficiently transmitted and utilized across the country.

Conclusion

This initiative is crucial not only for Egypt’s national energy strategy but also within the broader global context. As countries worldwide work to meet climate goals and reduce greenhouse gas emissions, Egypt’s commitment to renewable energy aligns with global trends towards sustainable energy solutions.

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