The European Union has strengthened its energy partnership with Egypt through an €690 million (US$800.6 million) clean-energy investment aimed at upgrading and expanding the country’s electricity grid to support the integration of renewable energy.
The financing package includes a €600 million loan from the European Investment Bank’s development arm, EIB Global, alongside €90 million in grants from the European Commission, according to a statement released on Tuesday.
The project, to be implemented by the Egyptian Electricity Transmission Company (EETC), is expected to enable Egypt’s national grid to integrate 22 gigawatts (GW) of renewable energy capacity by 2030, enough to supply electricity to around 10 million households.
The investment is part of Egypt’s wider strategy to expand renewable energy, modernise electricity infrastructure and strengthen its position as a regional energy hub connecting Africa, Europe and the Mediterranean.
The initiative also supports the objectives of the EU-Egypt Strategic and Comprehensive Partnership, which focuses on investment, renewable energy cooperation and the development of a more sustainable and secure energy system.
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The project is among the first major initiatives launched under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), a flagship programme under the Pact for the Mediterranean aimed at expanding renewable energy development and clean technology cooperation between the European Union and its southern Mediterranean partners.
Egyptian Foreign Minister Badr Abdelatty said the agreement reflected the strength of cooperation between Egypt and the EU and demonstrated a shared commitment to advancing the green transition.
He said the project would help modernise Egypt’s electricity network, improve energy security and create new opportunities for sustainable economic growth.
European Commissioner for the Mediterranean Dubravka Šuica said the investment would strengthen Egypt’s role in regional energy markets while creating opportunities for European and local businesses.
She added that the initiative represented a commitment to sustainable development, energy security and long-term prosperity across the Mediterranean region.
EIB Vice-President Gelsomina Vigliotti said the partnership would support the expansion and modernisation of Egypt’s electricity network, unlock additional renewable energy capacity and strengthen the country’s energy resilience.
The investment comes as Egypt accelerates efforts to increase the role of renewable sources in its energy mix. The government has set a target of raising renewable energy’s contribution to electricity generation to 45 percent within the next two years.
Earlier this month, Egypt signed a separate protocol agreement to finance the development of its national electricity grid, allocating EGP 60 billion to strengthen infrastructure and accommodate additional renewable energy capacity.
The agreement was signed by Electricity and Renewable Energy Minister Mahmoud Esmat, Planning and Economic Development Minister Ahmed Rostom, and Finance Minister Ahmed Kouchouk. The funding will support the Egyptian Electricity Transmission Company in expanding its operational and financial capacity.
Egyptian President Abdel Fattah el-Sisi has also reviewed plans to accelerate energy projects, including solar power expansion and battery storage systems, as part of efforts to reinforce the national electricity network.
The government says the renewable energy push is designed not only to meet rising domestic demand but also to position Egypt as a major player in regional electricity trade and clean-energy cooperation.
