Egypt Targets 60 Percent Renewable Electricity by 2040

The government’s strategy hinges on the Integrated Sustainable Energy Strategy (ISES) 2035, which prioritizes wind, hydropower, and photovoltaic solar power. To reach an interim milestone of 42 percent renewable generation by 2030, Egypt has already signed 32 Power Purchase Agreements with private developers. These contracts represent a shift toward high-capacity infrastructure, such as the 1.8GW Benban Solar Park and upcoming facilities from AMEA Power and the Abydos Kom Ombo Solar PV Park.

International partnerships are accelerating this expansion. In January, Egypt secured $1.8 billion in renewable deals, including major projects with Norway’s Scatec and China’s Sungrow. These agreements focus on both generation and the critical storage capacity required to stabilize the grid, with Scatec slated to develop a 1.7 GW solar plant in Minya featuring 4 GWh of battery storage. Furthermore, the European Union recently committed $788 million to upgrade Egypt’s electricity transmission network, a project managed by the Egyptian Electricity Transmission Company intended to integrate 22 GW of new capacity into the national grid.

Beyond traditional renewables, Egypt is positioning itself as a hub for the green hydrogen market. The Supreme Council of Energy approved a National Strategy for Low-Carbon Hydrogen in early 2024, and initial production has already commenced at a pilot 100-MW facility in the Suez Canal Economic Zone. By combining favorable solar irradiance—reaching up to 3,200 kWh per square meter—with sustained foreign investment, the state aims to transform its industrial sector while expanding its footprint in regional energy markets.