Egypt signs agreement to finance major renewable energy projects

Egyptian state-owned Tahya Misr Holding for Investment and Development has signed a protocol with the Ministries of Electricity and Renewable Energy and Finance to fund a series of renewable energy projects, according to a May 3 statement cited by Al Masry Al Youm. 

The projects include large-scale wind power developments in the Gulf of Suez and Red Sea regions, including North Gulf of Suez, South Ras Shukeir, Jabal El Galala, and Northwest Zafarana, with a combined capacity of 4,750MW. The plan also covers standalone battery energy storage systems with a capacity of 4,000MWh in areas including South Cairo, Damanhour, and Wadi El-Natrun.

Tahya Misr Holding is a state-led investment vehicle established to manage the commercial assets of the Tahya Misr Fund. 

Electricity Minister Mahmoud Essmat said Tahya Misr Holding will provide financing and oversee implementation, with the generated electricity priced in Egyptian pounds in line with the prevailing accounting rates applied to other developers. He added that agreements will be signed between the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority with the selected developer, with projects expected to be completed and connected to the national grid within two years.

Essmat noted the importance of integrating battery storage systems into renewable-based electricity networks to enhance efficiency and ensure grid stability, particularly during peak demand periods. The agreement aligns with the government's strategy to expand renewable energy use, reduce reliance on fossil fuels, and upgrade grid capacity. Egypt aims to increase the share of renewables in its energy mix to 45% by 2028 under its national energy strategy.