Minister of Planning, Economic Development, and International Cooperation Discusses with the Minister of Electricity and Renewable Energy the Investment Plan for the Electricity and Renewable Energy Sector for the New Fiscal Year 2025/2026

Dr. Rania Al-Mashat: The electricity and energy sector is a key pillar for achieving economic development and driving growth across various sectors

Dr. Mahmoud Esmat: The state has completely rebuilt the infrastructure and enhanced the legislative framework that supports the private sector

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, met with Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, to discuss the investment plan for the electricity and renewable energy sector for the new fiscal year 2025/2026.

During the meeting, H.E . Dr. Rania Al-Mashat highlighted the economic importance of the electricity and renewable energy sector. The sector’s significance lies in the fact that electricity forms the foundation for all economic and social development plans, as it powers industrial, service, and tourism projects and contributes to the development of new urban communities and reclaimed agricultural areas. Moreover, it is directly linked to the living conditions of citizens. H.E. Dr. Al-Mashat emphasized the close relationship between the growth of the electricity sector and GDP, especially in the manufacturing sector.

H.E. Minister Al-Mashat also outlined the sector’s developmental vision, which focuses on improving the efficiency of electricity and enabling it to keep pace with technological advancements and knowledge development. This vision aims to provide energy at competitive prices in a sustainable and environmentally compatible manner, improving the quality of life for citizens.

H.E. Dr. Al-Mashat referred to the government’s plan to expand and develop renewable energy to reach 42% of the installed capacity from renewable energy sources by 2030, which demonstrates Egypt's commitment to accelerating the transition to clean energy and increasing the use of renewable sources to reduce dependence on unsustainable energy.

H.E. Minister Al-Mashat explained that the investment plan for the Ministry of Electricity and Renewable Energy for the current fiscal year 2024/2025 includes directing public investments of approximately 99.9 billion Egyptian pounds to implement 48 projects.

 H.E. Dr. Al-Mashat noted that the strategic objectives of the investment plan for the next fiscal year 2025/2026 include improving the quality of electricity services provided to citizens, enhancing international competitiveness, increasing private sector participation in the electricity sector, creating an investment-friendly environment, and promoting the role of the electricity sector in resource sustainability and addressing climate change through a shift to clean energy, as well as improving consumption efficiency and reducing losses in the electricity sector.

Dr. Mahmoud Esmat stated that the government has undertaken a comprehensive process to rebuild infrastructure and enhance the legislative framework to encourage the private sector and international financing bodies to implement renewable energy projects, making Egypt one of the most attractive countries for investment in this field.

He highlighted the increase in the country’s capacity in both solar and wind energy, relying on both local and foreign private sector involvement. By the end of 2026, Egypt's renewable energy capacity is expected to reach approximately 12,000 MW, along with 3,350 MW of storage batteries. By the end of 2029, the goal is to reach 20,000 MW of renewable energy capacity, 3,600 MW of clean nuclear energy, and 2,400 MW from pumped storage.

Dr. Esmat emphasized that these projects will not only help reduce carbon emissions but also create new job opportunities, drive economic growth, and help the country reduce its dependence on fossil fuels. They will also contribute to achieving Egypt's Vision 2030 and the National Energy Strategy 2040, which has been updated by the government to reflect the country’s direction toward renewable energy and sustainability.

Dr. Esmat further explained that the ministry's strategy aims to make Egypt a regional energy hub linking the energy markets of Africa, Europe, and the Middle East, thanks to its strategic location and essential infrastructure projects. He pointed out the existing electricity interconnection projects with neighboring countries, such as Sudan, Libya, and Jordan, and the ongoing project to interconnect with Saudi Arabia, which is expected to be operational this year. He also highlighted the shared vision with the European Union countries for electricity interconnection, emphasizing that the electricity interconnection projects between Egypt and Greece, and Egypt and Italy, are among the key initiatives aimed at achieving regional energy integration. These projects facilitate the transmission of clean electricity across borders, helping to meet the energy needs of countries and ensuring the stability of electrical grids. Furthermore, Egypt is working to strengthen cooperation with African countries to achieve energy integration, transfer technical expertise, and support renewable energy projects across the continent to meet the increasing energy demand in a sustainable and equitable manner.

The meeting also touched on several key points, including the foundational elements of the 2025/2026 economic and social development plan, the integrated methodology for preparing the plan, and the mechanisms for supporting climate action and the transition to a green economy as a main focus of development plans. Additionally, the investment priorities for the electricity and renewable energy sector for the upcoming fiscal year 2025/2026 were reviewed. These priorities include optimizing the use of renewable energy sources to maximize the benefits from natural resources, attracting investments within the green economy transition, turning Egypt into a key hub for electricity interconnection in light of its importance as an energy regional center, and enhancing the development of electricity distribution services to ensure high-quality, competitive electricity access for all citizens. Furthermore, the importance of improving electricity transmission networks to support sustainable development projects was emphasized, particularly in securing electricity for food security, industrial, and urban development initiatives.