Egypt has secured significant European funding to strengthen its electricity transmission network as the country advances plans to expand renewable energy production and improve grid infrastructure.
The Egypt Renewable Energy Grid project received support through a financial package worth up to €690 million, announced during the EU-Egypt Association Council meeting in Luxembourg. The agreement marks one of the first major projects launched under the Strategic and Comprehensive Partnership established between Egypt and the European Union in 2024.
The funding package combines a €600 million loan from EIB Global with up to €90 million in grants provided by the European Commission.
Officials said the investment represents the first concrete initiative under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, known as T-MED.
The project focuses on strengthening Egypt’s electricity transmission system rather than directly funding power exports to Europe.
The Egyptian Electricity Transmission Company (EETC) will use the financing to build substations and high-voltage transmission lines across the country.
These upgrades are designed to connect renewable energy projects located in the Red Sea and Gulf of Suez regions to the national electricity network.
Authorities expect the infrastructure improvements to support the integration of up to 22 gigawatts of renewable energy capacity by 2030.
According to project estimates, that level of capacity could provide electricity for approximately 10 million households.
European funding will cover about 44 percent of the overall project cost, while EETC will finance the remaining share using its own resources.
The implementation period for the EIB-supported phase is expected to run from 2027 through 2030. Financing will be arranged through borrowing mechanisms involving the Central Bank of Egypt.
While the new funding strengthens Egypt’s domestic network, it does not directly finance the proposed GREGY interconnection project.
The GREGY project is a separate initiative that aims to connect Egypt and Greece through a high-voltage direct current cable running across the Mediterranean Sea.
The proposed cable would stretch approximately 1,000 kilometers and carry up to 3 gigawatts of electricity between the two countries.
Developed by Elica Interconnector, a company linked to Greece’s Copelouzos Group, the project has received political support from Egypt, Greece, and the European Union.
If completed, it could become one of the first large-scale electricity corridors transporting renewable energy from North Africa into European markets.
Energy experts note that strengthening domestic transmission infrastructure is a necessary step before large-scale exports can become possible.
Electricity generated by solar and wind projects must first be moved efficiently within Egypt before it can be transmitted abroad.
The government has continued investing in related energy infrastructure projects.
In July, Egypt’s Cabinet approved an additional €37 million package under the Nexus of Water, Food and Energy program.
That funding includes a €35 million investment grant from the European Union and €2 million in technical cooperation support from the European Bank for Reconstruction and Development.
At the same time, an Egyptian-Emirati consortium committed approximately EGP20 billion, or about $391 million, to develop a 500-kilovolt transmission line connecting renewable energy projects in the Gulf of Suez region.
Renewable power generation is also expanding rapidly.
The African Development Bank recently approved financing of up to $66 million for the first phase of the Dandara solar project in Qena Governorate.
The project will include a 500-megawatt solar facility and 100 megawatt-hours of battery storage capacity.
Officials expect the project to become fully operational in early 2028.
Once completed, it is projected to generate approximately 1,373 gigawatt-hours of electricity annually.
Egypt’s Ministry of Electricity and Renewable Energy has stated that 2,500 megawatts of renewable generation capacity are expected to connect to the national grid during 2026.
The country is working toward a target of obtaining 42 percent of its electricity from renewable sources by 2030.
Minister of Electricity and Renewable Energy Mahmoud Esmat recently highlighted Egypt’s broader regional energy strategy.
Speaking to ambassadors and diplomatic representatives, he discussed electricity interconnection projects involving Sudan, Libya, Jordan, and Saudi Arabia, as well as planned links with Greece and Italy.
The Egypt Renewable Energy Grid investment reflects the country’s long-term strategy to modernize its electricity system, support clean energy development, and position itself as a potential regional energy hub.
Whether future export connections move forward or not, the infrastructure now being developed will play a central role in strengthening Egypt’s domestic energy network and supporting its renewable energy ambitions.
