Egypt aims to save $4.1 billion annually in fuel costs by expanding its renewable energy capacity by 30 gigawatts, as announced by the government.
This initiative is a key component of Egypt’s strategy to boost sustainable electricity generation and reduce reliance on traditional energy sources.
Prime Minister Mostafa Madbouly chaired a meeting with officials to review ongoing renewable energy projects. Attendees included Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation; Mahmoud Esmat, Minister of Electricity and Renewable Energy; Hassan Al-Khatib, Minister of Investment and Foreign Trade; and other significant figures.
Esmat outlined Egypt’s current and future renewable energy capacities under the Integrated and Sustainable Energy Strategy.
The country aims to achieve 42 percent renewable electricity generation by 2035 and 58 percent by 2040. He also discussed the necessary capacities for hydrogen production and the role of renewable energy, hydropower, and storage in the national energy mix.
Al-Mashat updated attendees on concessional financing from development partners supporting the renewable energy sector.
She highlighted that 18 projects are underway, funded through the Nexus of Water, Food, and Energy (NWFE) program, which also focuses on enhancing the electrical grid’s capacity.
Launched in 2022, the NWFE program aims to mobilize $14.7 billion for nine projects addressing climate change impacts in water, food, and energy sectors.
Madbouly stressed the importance of these discussions for monitoring the progress of Egypt’s renewable energy initiatives, which are central to the country’s long-term energy strategy.
In June, Egypt’s sovereign fund signed four agreements totaling $33 billion with European developers to advance green ammonia projects.
The agreements include:
- An $11 billion deal with DAI Infrastructure for a green ammonia project at East Port Said.
- A $4.25 billion agreement with Ocior Energy for a green ammonia project at Al-Sokhna Port, aimed at European markets.
- A $3.46 billion partnership between Arab Energy and Voltalia to develop another green ammonia project at Al-Sokhna Port.
- A $14 billion agreement with British Petroleum, Masdar, Hassan Allam Utilities, and Infinity Power Holding for a green ammonia project at Al-Sokhna Port.
