Egypt and the European Union (EU) have agreed on a financing package worth up to 690 million euros to modernize and expand the country’s electricity transmission network, supporting the integration of 22 gigawatts (GW) of renewable energy capacity by 2030 and reinforcing Egypt’s ambitions to become a regional clean-energy hub.
The financing package comprises a 600 million euro loan from the European Investment Bank (EIB) ‘s development arm, EIB Global, and up to 90 million euros in grants from the European Commission.
The project, to be implemented by the state-owned Egyptian Electricity Transmission Company (EETC), is designed to strengthen the national grid and facilitate the integration of large-scale solar and wind energy projects into the electricity network.
According to the EU and EIB, the planned renewable-energy capacity is sufficient to provide electricity to around 10 million households by 2030.
The initiative forms part of Egypt’s broader strategy to expand renewable energy generation, improve energy security, and enhance the resilience of its electricity infrastructure. It also supports the objectives of the EU-Egypt Strategic and Comprehensive Partnership, which seeks to mobilize investments and deepen cooperation in the energy sector.
Foreign Minister Badr Abdelatty said the agreement reflects the growing partnership between Egypt and the EU in advancing the green transition, noting that the project will contribute to modernizing the electricity network, strengthening energy security, and supporting sustainable economic growth.
The project is among the first major investments launched under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), a flagship programme of the Pact for the Mediterranean aimed at promoting renewable-energy and clean-technology cooperation between the EU and its southern Mediterranean partners.
European Commissioner for the Mediterranean Dubravka Šuica said the project would strengthen Egypt’s position in regional energy markets while creating business opportunities for both Egyptian and European companies.
For her part, EIB Vice-President Gelsomina Vigliotti said the investment demonstrates the potential of EU-Egypt cooperation to accelerate renewable-energy deployment, modernize electricity infrastructure, and support sustainable economic development.
The programme includes the construction of new substations and the installation of advanced transmission lines to connect solar and wind projects in the Red Sea and Gulf of Suez regions to the national grid.
The investments are expected to reduce transmission losses, improve grid reliability, strengthen energy security, and support future cross-border electricity trade and clean-energy integration across the Mediterranean region.
The EU-backed financing package will cover 44 percent of the programme’s total cost, while the remaining funding will be provided by EETC. The EIB-supported phase is scheduled to be implemented between 2027 and 2030, with the Egyptian government acting as borrower through the Central Bank of Egypt.
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