The EU and Egypt have presented a €690 million package backed by the European Investment Bank and the European Commission to modernise and expand Egypt’s national electricity grid, with construction planned to start in 2027.
The funding includes a €600 million loan from the European Investment Bank and up to €90 million in grants from the Commission, the Commission announced on Monday.
It said the project is being presented as the first flagship operation under its Trans-Mediterranean Renewable Energy and Clean Tech Cooperation initiative, known as T-MED.
Total expected public and private investment linked to the project is €1.6 billion.
The plan was presented on the margins of the 11th EU-Egypt Association Council in Luxembourg.
The project is intended to help Egypt integrate 22 gigawatts (GW) of renewable energy into its grid by 2030 — a level described as enough to power 10 million homes in the country by the Commission.
Upgrades in the Red Sea and Gulf of Suez regions
Critical substations and transmission lines in the Red Sea and Gulf of Suez regions are set to be upgraded, with the aim of reducing energy losses and improving grid reliability, the Commission said.
It added that the project is expected to deliver 10.4 GW of renewable power, supporting Egypt’s move away from fossil fuels in line with the country’s 2040 targets. First renewable energy flows are expected by 2028.
The project was presented by Commissioner for the Mediterranean Dubravka Šuica and Egypt’s Foreign Affairs Minister Badr Abdelatty, alongside European Investment Bank President Nadia Calviño and Vice-President Gelsomina Vigliotti.
“Today we presented a major EU-supported project to strengthen and expand Egypt's electricity infrastructure,” Šuica said.
