Egypt took another step in its energy transition strategy after securing a financial package of up to €690 million to expand and modernize its electricity transmission network. The initiative includes a €600 million loan from the European Investment Bank (EIB Global) and up to €90 million in grants from the European Commission .
The program, which will be executed by the state-owned Egyptian Electricity Transmission Company (EETC) , seeks to prepare the country's electrical infrastructure to incorporate 22 GW of new renewable capacity by 2030 , a volume capable of supplying approximately 10 million homes .
The investment aligns with Egypt's national energy strategy, which aims to increase the share of clean energy sources, strengthen the transmission network, and reinforce its role as an energy platform for the region. At the same time, it represents one of the key projects undertaken within the framework of the Comprehensive Strategic Partnership between Egypt and the European Union.
“This agreement reflects the strength of cooperation between Egypt and the European Union and our shared determination to advance the energy transition,” said Minister of Foreign Affairs, International Cooperation and Egyptians Abroad, Badr Abdelatty , when announcing the initiative.
The first major project of the Mediterranean energy agenda
The operation will become one of the first materializations of the Trans-Mediterranean Cooperation Initiative on Renewable Energies and Clean Technologies (T-MED) , considered one of the flagship projects of the new Pact for the Mediterranean promoted by Brussels.
The European Commission emphasized that the expansion of the Egyptian grid will not only allow for greater integration of renewable energy, but will also open up opportunities for industrial development and economic cooperation between both sides of the Mediterranean.
The European Commissioner for the Mediterranean, Dubravka Šuica , stated that the project will strengthen Egypt's position within regional energy markets and contribute to generating new business opportunities for European and local companies linked to energy infrastructure and clean technologies.
Substations, transmission lines and more solar and wind power
The program includes the construction of new high-tech substations and the deployment of advanced transmission lines to transport electricity generated by future solar and wind farms located in the Red Sea and Gulf of Suez areas, two of the country's main renewable energy hubs.
Authorities expect these projects to reduce grid losses, increase the reliability of the electricity supply, and improve national energy security. Furthermore, they will facilitate greater integration of electricity markets and future clean energy exchanges among Mediterranean countries.
For the European Investment Bank , the initiative is a key piece in accelerating the modernization of the Egyptian electricity system and supporting the growth of renewable energy on a large scale.
A bid to turn Egypt into a regional energy hub
The financial scheme anticipates that the resources provided by the European Union will represent approximately 44% of the total cost of the program , while the remainder will be covered by EETC's own funds.
The phase supported by the EIB will take place between 2027 and 2030 , with the Egyptian government acting as borrower through the Central Bank of Egypt and the state-owned transmission company leading the execution of the works.
Beyond the expansion of the electrical infrastructure, the project sends a clear signal to the market: Egypt seeks to become one of the main clean energy hubs in the Mediterranean, relying on a combination of solar and wind resources, new transmission networks, and growing cooperation with Europe to attract long-term investments.