Egypt Plans to Double Power Sector Investment to $7.6 Billion
Egypt will dramatically increase investment in the electricity and renewable energy sector to EGP 136.3 billion ($7.6 billion) in the 2025-2026 fiscal year, nearly doubling the EGP 72.6 billion allocated in 2024-2025.
Public investments will account for 73% of the total, with private contributions representing 27%. State holding companies and the public business sector will handle 45% of planned public spending. The Ministry of Planning expects the sector’s output to reach EGP 655.6 billion in 2025-2026 and EGP 984.5 billion by 2028-2029, supported by annual growth of 15-20%.
Major projects planned include expanding transformer substations in North Sinai, 10th of Ramadan and Zahraa Madinat Nasr, relocating facilities conflicting with road projects, converting overhead lines into underground cables, and rehabilitating the Matariya station. The plan also calls for 1,200 MW of new thermal capacity, nine 500 kV substations, and reducing electricity loss to 16.5% from 19.6%.
Egypt’s electricity export ambitions are substantial, with 3,900 MW expected in 2025-2026. This includes projects with Jordan (550 MW), Libya (150 MW), and Sudan (300 MW), alongside a massive 3,000 MW interconnection with Saudi Arabia. Egypt also plans to advance agreements with Cyprus and Greece to lay a 1,650 km undersea cable.
Renewable energy will play an increasingly important role, accounting for 20% of power generation in 2025-2026, up from 12% in 2023-2024. The country has allocated 2,900 km² for solar and wind projects targeting 6,470 MW of capacity.
Source: energycapitalpower.com
