The Ministry of Planning, Economic Development and International Cooperation reviewed the electricity sector targets for the 2025/2026 fiscal year plan in a report.
In this context, Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, pointed out that the electricity and renewable energy sector is responsible for providing electrical energy to all users in various productive and consumer fields. This contributes to achieving sustainable development goals and continuously improving the level of services provided to citizens.
Electrical energy is an essential necessity for meeting the basic daily living requirements of citizens and for powering all development projects, whether in agriculture, industry, trade, services, housing, or the development of urban communities and new land reclamation areas.
Al-Mashat added that given the sector’s importance and its direct link to GDP growth rates, it has become common in economic literature to use per capita electrical energy as a primary measure for a citizen’s well-being and the national economy’s progress and international competitiveness.
The sector’s effectiveness in achieving its targets now depends on its ability to diversify energy sources and benefit from renewable resources, in addition to rationalizing the efficiency of traditional resources, planning well to meet future developments in energy demand, and continuing to improve the quality and availability of services for all citizens and regions.
Regarding the sector’s development vision, H.E. Dr. Al-Mashat mentioned that its dimensions are to develop and improve electrical energy to enhance its efficiency and ability to keep pace with technological and knowledge advancements. This paves the way for providing energy at competitive prices to all users in a sustainable and environmentally friendly manner to improve citizens’ quality of life.
Egypt’s 2030 vision aims to enable the electricity sector to meet development needs for energy resources and to organize the efficient use of various sources, whether traditional or renewable. This will contribute effectively to driving economic growth and improving the environmental system.
Total Investments in the Electricity and Renewable Energy Sector
Minister Al-Mashat highlighted the sector’s investments, stating that the 2025/2026 plan targets total investments for the electricity and renewable energy sector of EGP 136.3 billion, compared to EGP 72.6 billion in targeted investments for 2024/2025 and actual investments of EGP 95.8 billion in 2023/2024. Public investments constitute about 73% of the total investments for the electricity sector in 2025/2026, compared to 27% from private investments. Specialized holding companies and the public business sector account for about 45% of the total targeted public investments.
The report from the Ministry of Planning, Economic Development and International Cooperation also indicated the sector’s targets in the plan. The plan aims to increase the output of the electricity and renewable energy sector to EGP 655.6 billion, and it is expected to gradually increase to EGP 984.5 billion by 2028/2029, with an annual growth rate ranging from 15% to 20%. As for the sector’s product, the 2025/2026 plan aims to record about EGP 285 billion and reach about EGP 430 billion by 2028/2029, with annual growth rates ranging from 15% to 20%.
Key Projects Targeted for Implementation
The report outlined the projects targeted in the 2025/2026 plan. The plan’s objectives include a wide range of projects, whose selection considered their consistency with the strategic directions and development priorities of the plan, as well as their reliance on the standards and determinants outlined in the plan preparation guide. This ensures good governance of public investments.
These projects fall under several programs. One is to continue providing and improving the quality of electricity supply and ensuring its sustainability. This program aims to achieve comprehensive electricity supply for all urban communities, residential areas, and economic activities while improving the quality of supply services to ensure their sustainability and maximize their expected returns. Another is a program to improve the quality of electricity utility services (interconnection, transmission, and distribution services).
Targeted projects include completing the relocation and conversion of electrical facilities that conflict with road projects, expanding the Mas’aid and Baghdad 220 kV transformer substations in North Sinai Governorate, completing the national project to convert overhead lines into underground cables, as well as finalizing the expansion of the 10th of Ramadan and Zahraa Madinat Nasr electrical transformer stations, completing the construction of the new Minya el-Kamh electrical transformer station, and rehabilitating the Matariya transformer station.
In this context, the plan also targets quantitative performance indicators: increasing the percentage of residents benefiting from electricity services to 99.8%, increasing the average annual generated electrical energy to about 235 billion kWh in 2025/2026, compared to 229 billion kWh in 2023/2024. The plan also aims to add 1,200 megawatts of thermal generation capacity, reduce the percentage of electricity loss to 16.5% in the plan year, compared to about 19.6% in 2023/2024, add 9 transformer substations at 500 kV, and increase Egypt’s electricity exports to 3,900 megawatts.
Egypt as a Regional Energy Hub
The report underscored the program to enhance Egypt’s regional role as an energy hub. The plan’s targets in this regard include increasing the capacity of electricity interconnection networks to about 3,900 megawatts in 2025/2026, compared to the current capacity of 780 megawatts.
This includes: the Egyptian-Jordanian electricity interconnection line with a capacity of 550 megawatts, with Libya with a capacity of 150 megawatts, and also raising the capacity of the interconnection project with Sudan from 80 to 300 megawatts, and completing the implementation of the electrical interconnection project between Egypt and Saudi Arabia through direct current interconnection lines with a capacity of 3,000 megawatts. In addition, the plan includes completing the activation of the signed memorandums of understanding with Cyprus and Greece for electrical interconnection by laying a 1,650 km submarine cable from Egypt across the Mediterranean to Cyprus and then to Greece with a capacity of 1,000 megawatts in the first phase.
Transition Towards Renewable Energy
The report also pointed to the program for diversifying energy sources and the gradual transition to environmentally friendly renewable energy. The plan aims to increase the share of renewable energy to nearly 20% in 2025/2026, compared to about 12% in 2023/2024. This will be achieved by increasing investments directed at developing solar and wind energy, expanding the land allocated for producing renewable energy to 2,900 square kilometers, and reaching the targeted capacities for solar and wind power plants of 6,470 megawatts. In addition, there is a program to enhance private sector participation in electricity and renewable energy sector projects.
The development plan aims to incentivize the private sector to participate effectively in all energy projects, especially renewable energy. This is done by providing serviced land for energy projects, expanding the issuance and regular renewal of licenses for electricity distribution and production, and providing technical and financial support through technical assistance and concessional financing within the framework of government initiatives and multilateral or bilateral development partners.
Fostering Private Sector Participation
The plan report indicated promoted private sector participation in energy projects, particularly renewable energy, by providing serviced lands for energy projects, expanding the granting and regular renewal of permits for electricity distribution and production, and providing technical and financial support through technical assistance and concessional financing within the framework of government initiatives and multilateral or bilateral development partners.
The sector’s projects include a number of projects funded by development grants, including the completion of the construction of the new Minya el-Kamh electrical transformer station, the rehabilitation of the Matariya electrical transformer station, and the construction of the Orascom and Nuweiba overhead electrical lines, with investments of EGP 830 million. This is through a debt swap financing agreement totaling 54 million euros with the German Development Bank, with the aim of developing the transmission network for renewable energy programs in the electricity transmission network and strengthening the network.
In addition, the report mentioned the completion of technical support for the development of the energy sector in cooperation with the French Development Agency, with investments of EGP 37 million, and the completion of technical support for the implementation of the main reform procedures for the electricity and renewable energy sector in cooperation with the French Development Agency, with investments of EGP 33 million. This is within the framework of a grant provided as part of the partnership with the French Development Agency, as well as the expansion of the electrical transformer stations (10th of Ramadan and Zahraa Madinat Nasr) within the national electricity grid support project with investments of EGP 125 million. This is part of the grant provided by the European Union, with the aim of strengthening and expanding the national electricity grid at both the extra-high and high voltages.
It is worth noting that the Ministry of Planning, Economic Development and International Cooperation, through the “NWFE” program country platform, has succeeded in mobilizing EGP 4 billion in development financing over two and a half years for the local and foreign private sector. This contributes to increasing foreign direct investments in the renewable energy sector and strengthens Egypt’s position as a regional energy hub. These funds have helped finance projects with a capacity of 4.2 gigawatts, out of a total of 10 gigawatts targeted by the program until 2028, which supports Egypt’s efforts in the field of renewable energy and the green transition and achieves the updated national targets regarding increasing the renewable energy mix.
