Fitch expects strong expansion in Egypt’s renewable energy capacity by 2035

Fitch Ratings said it is optimistic about Egypt’s power sector between 2025 and 2035, projecting significant growth in electricity generation capacity driven by large investments in renewable energy projects, according to a report on Egypt's infrastructure cited by Al Ahram on May 20.

The outlook praises Egypt’s broader strategy to diversify energy sources and strengthen long-term sustainability goals. According to the agency, Egypt’s power generation capacity is expected to increase substantially over the coming decade, supported by expanding investments in renewable sources and government efforts to accelerate energy development.

Fitch expected that the non-hydropower renewable energy capacity would rise from 6.7GW to 30.6GW by 2035. The projected expansion is expected to be largely driven by rapid growth in onshore wind and solar energy projects. Wind power capacity is expected to increase from 3.2GW to 13.6GW during the period, while solar energy capacity is projected to rise from 3.4GW to 16.9GW. 

The report linked the anticipated growth to faster licensing procedures, favourable regulatory reforms, including the use of Egypt’s golden licence mechanism, and stronger international investment flows. Fitch also expects solar energy to become the largest contributor to Egypt’s renewable energy capacity. By 2035, solar projects are projected to account for 44.4% of total non-hydropower renewable capacity and around 25.1% of the country’s total electricity generation capacity.

Egypt's renewable energy policy aims to source at least 42% of its domestic electricity from clean energy by 2030. To achieve this, the government is working to add capacity to the national grid while executing a national low-carbon strategy designed to transform the country into a major regional hub for green hydrogen and ammonia exports.