Photo courtesy of Egyptian cabinet.
The agreement is part of Egypt’s plan to become an energy transmission and exchange hub. It also aims to improve electrical interconnectivity between Asia, Africa, and Europe and enhance the operational performance and efficiency of Egypt’s national electricity grid and the quality of its electricity supply.
Egyptian Minister of Electricity and Renewable Energy Mahmoud Esmat and Jordan’s Minister of Energy and Mineral Resources Saleh Al-Kharabsheh attended the signing ceremony.
The contract renewal is based on a previously signed memorandum of understanding between the electricity ministries in Egypt and Jordan, whereby Egypt supplies Jordan with electricity, according to the statement.
Egypt earmarked EGP 136.3 million for investments in the electricity and renewable energy sector during FY2025/2026. The country aims to achieve 99.8 percent electricity coverage, increase annual generation capacity to 235 billion kWh, from 229 billion kWh two years ago, and add 1,200 megawatts of new thermal power generation.
Al-Kharabsheh explained that Egypt and Jordan are working on increasing the capacity of the connection line between them to 2,000 megawatts, as part of the electricity interconnection between Arab countries project.
Esmat, for his part, confirmed Egypt’s plan to improve energy interconnection with neighboring countries. He noted that the agreement with Jordan will contribute to increasing and stabilizing the electricity supply between the two countries. The agreement also yields economic returns, he added.
Moreover, Esmat noted that Egypt transferred to Jordan 306 million kWh (valued at $28.2 million) in 2025.
Egypt, he stated, has completed the first phase of an electricity interconnection project, with a capacity of 1,500 MW, with Saudi Arabia. The second phase of the project with the same capacity is expected to be completed during 2Q 2026, according to Esmat.
Egypt is also carrying out projects to export electricity from renewable sources to Italy and Greece.
Investments in the national grid have become increasingly urgent as electricity peak loads rise and Egypt transitions to renewable energy. The European Bank for Reconstruction and Development (EBRD) and the EU recently backed the country’s green power shift with a €200 million grid upgrade financing package.
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