EU and EIB back Egypt’s €690 million grid upgrade to accelerate its energy transition

Egypt is set to accelerate its clean energy ambitions after securing a €690 million financing package from the European Union and the European Investment Bank (EIB) to modernize and expand its electricity transmission network.

The investment, announced as part of the growing EU–Egypt strategic partnership, combines a €600 million loan from EIB Global, the EIB’s development arm, with €90 million in grants from the European Commission. The project will be implemented by the Egyptian Electricity Transmission Company (EETC) and is expected to support the integration of 22 gigawatts (GW) of renewable energy capacity into Egypt’s national grid by 2030, enough electricity to power approximately 10 million households.

The initiative supports Egypt’s broader efforts to expand renewable energy generation, strengthen its electricity infrastructure, and enhance its role as a regional energy hub. It also aligns with the objectives of the EU-Egypt Strategic and Comprehensive Partnership, which focuses on mobilizing investment, advancing renewable energy cooperation, and building a more sustainable and resilient energy system.

The project is among the first major investments launched under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), a flagship program under the Pact for the Mediterranean designed to deepen renewable energy collaboration and clean technology development between the EU and Southern Mediterranean countries.

Commenting on the agreement, Egyptian Minister of Foreign Affairs Badr Abdelatty said the project reflects the strength of the relationship between Egypt and the European Union and their shared commitment to advancing the green transition.

“This agreement reflects the strength of the partnership between Egypt and the European Union and our shared determination to advance the green transition,” he said.

Abdelatty added that the investment would help modernize Egypt’s electricity infrastructure, strengthen energy security, and unlock new opportunities for sustainable economic growth.

European Commissioner for the Mediterranean Dubravka Šuica described the initiative as a significant step in reinforcing Egypt’s electricity infrastructure and expanding regional energy cooperation.

“Under its newly launched flagship initiative, T-MED, today we presented a major EU-supported project to strengthen and expand Egypt’s electricity infrastructure,” she said.

According to Šuica, the project is expected to strengthen Egypt’s position in regional energy markets while creating new opportunities for both local and European companies operating across the energy value chain.

EIB Vice-President Gelsomina Vigliotti said the financing demonstrates how international partnerships can help accelerate energy transition efforts while supporting long-term economic development.

“By working together, Egypt, the EU, and the EIB are supporting the expansion and modernization of the electricity network, unlocking more renewable energy, and strengthening the country’s role as a regional energy hub,” she said.

The latest agreement builds on Egypt’s ongoing investments in grid modernization. Earlier this month, the government signed a protocol agreement worth EGP60 billion to finance projects aimed at strengthening and expanding the national electricity grid to accommodate additional renewable energy capacity.

The agreement was signed by Minister of Electricity and Renewable Energy Mahmoud Esmat, Minister of Planning and Economic Development Ahmed Rostom, and Minister of Finance Ahmed Kouchouk. The funding is intended to enhance the financial and operational capabilities of the Egyptian Electricity Transmission Company and support the country’s renewable energy targets.

The announcement also comes as President Abdel Fattah El-Sisi reviews progress on the second phase of national energy projects aimed at reinforcing Egypt’s electricity infrastructure. Discussions have focused on accelerating the rollout of solar energy projects and energy storage systems to support the growing share of renewables in the country’s energy mix.

Egypt aims to increase renewable energy to 45% of its electricity generation mix within the next two years, a goal that will require significant investments in transmission infrastructure, grid flexibility, and storage capacity.