Egypt signs $1.16bn protocol to upgrade power grid for renewables

Egypt has signed a tripartite protocol among the ministries of finance, planning, and electricity to allocate EGP 60bn ($1.16bn) to strengthen and develop the national electricity grid to accommodate growing renewable energy capacity, according to a June 14 cabinet statement cited by Al Ahram.

The agreement is designed to provide dedicated funding for the Egyptian Electricity Transmission Company. The aim is to support its financial and operational capabilities as the country accelerates its clean energy transition.

PM Mostafa Madbouly said the drive to expand renewable energy projects and maximise their contribution to the energy mix forms part of the state's strategy to shift towards a green economy and achieve sustainable development.

Electricity Minister Mahmoud Esmat said enhancing the grid enables the network to absorb new generating capacity from renewables, meet rising demand, and handle higher load levels. He noted the need to accelerate the integration of solar and wind projects to reach the government's target of 45% renewables in the energy mix by 2028.

Finance Minister Ahmed Kouchouk said the government supports the renewable energy transition, including grid infrastructure development, to secure reliable electricity for citizens and investors alike and attract inflows across productive, industrial, and export sectors.

Planning Minister Ahmed Rostom said the protocol aligns the country’s fiscal and investment policies, calling the injection a strategic infrastructure investment and a pillar for attracting both foreign and domestic capital, while engaging the private sector as a core development partner.