Egypt and the European Union (EU) are strengthening their strategic partnership in renewable energy through a financing package of up to €690 million to upgrade and expand Egypt’s electricity transmission network, noted a press release by the EU.
The package includes a €600 million loan from the European Investment Bank’s development arm, EIB Global, alongside grants of up to €90 million provided by the European Commission.
The grid upgrade project, led by the Egyptian Electricity Transmission Company (EETC), seeks to integrate approximately 22 gigawatts (GW) of renewable energy capacity into the national grid by 2030. This capacity is expected to generate enough electricity to cover the needs of almost 10 million households.
The investment aligns with Egypt’s national energy priorities, supporting renewable expansion, stronger electricity infrastructure, and the country’s role as a regional hub. It also advances the EU‑Egypt Strategic and Comprehensive Partnership by mobilising investment, fostering renewable cooperation, and driving the transition toward a more sustainable, secure, and competitive energy system, noted the statement.
The programme includes the construction of substations and the installation of advanced transmission lines to integrate solar and wind power generated in the Red Sea and Gulf of Suez regions into the national grid. The investments are expected to reduce transmission losses, improve electricity reliability, strengthen energy security and support sustainable economic development.
The EU financing package accounts for 44% of the programme’s total cost, with the remainder covered by EETC’s own funds.
This partnership builds on a pipeline of EU‑backed renewable investments in Egypt, including the $150 million EIB‑financed Obelisk solar PV plant with battery storage, capable of delivering up to 1 GW of clean power. At the same time, initiatives such as the Nexus of Water, Food and Energy (NWFE) platform and the Green Economy Financing Facility, supported by more than €23 million in EU grants, are mobilising investment and driving private‑sector projects in renewables and energy efficiency
