Photo courtesy of Egypt’s Ministry of Electricity and Renewable Energy
China Southern Power Grid International (CSGI) is an investment and construction subsidiary of China Southern Power Grid, one of China's two main state-owned electricity grid firms.
CSGI operates in electricity transmission and distribution, pumped-storage hydroelectric power generation, energy control systems, and energy integration.
The two sides discussed potential cooperation in energy planning, integrating and maximizing renewable energy use, proposing smart distribution systems, solutions to utilize energy storage systems, and technology.
Egypt is looking to integrate renewable energy sources into the grid and stabilize it in preparation for times of high demand.
Egypt and China discussed implementing advanced digital solutions to safeguard energy control and transition from traditional to smart grids, as well as developing control centres and providing technical assistance, as per Egypt's national energy transition plan.
The plan aims to accelerate the shift to cleaner energy and enhance sustainability in industrial production through developing energy storage capacity and transmission networks to improve the efficiency of the electricity system.
This meeting aligns with Egypt's recent efforts to ensure electricity supply amid rising consumption and ongoing regional volatility, to position itself as a renewable energy hub and expand its energy sector while attracting foreign investors.
This will also help the country prepare for an expected six to seven percent increase in electricity use this summer.
The state is planning on increasing the use of renewable energy and the share of clean energy in the country's electricity mix to 45 percent by 2028.
Egypt is moving forward with plans to accelerate and diversify electricity generation to support a greener economic transition. Most recently, through advancing the peaceful use of nuclear energy through the Dabaa nuclear power plant.
Egypt has installed the reactor pressure vessel, one of the plant's most important components. This expedited the project's transition to a more advanced stage of construction.
Approximately 2,500 megawatts of renewable energy capacity are expected to be added to the national grid in 2026, alongside efforts to improve the efficiency of power generation units.
A study of the grid is also potentially the work of Egypt’s Egyptian Electricity Transmission Company (EETC) and the CSGI to review reliance on renewable energy sources and energy storage batteries to reduce fossil fuel use.
Developing and enhancing the national grid is part of the state’s plan to increase its capacity to absorb renewable energy and utilize natural resources such as wind and solar power, Electricity Minister Mahmoud Esmat said.
Egypt launched its “Sun of Industry” initiative to diversify electricity sources and support wider solar energy use. The initiative aims to install solar power stations on the rooftops of about 7,000 factories across various governorates for on-site electricity generation.
Egypt has been eying Chinese investments in renewable energy projects and solar and wind energy components industries, boosting cooperation with other Chinese firms such as TBEA in August 2025 and Golden Concord Group (GCL) in February 2026.
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