Egypt and the European Union (EU) are strengthening their strategic partnership in the field of renewable energy through a financing package of up to EUR690m aimed at upgrading and expanding the Egyptian electricity network. The package consists of a EUR600m loan from the European Investment Bank (EIB) combined with up to EUR90m in grants from the European Commission (EIB press release, 15/06/2026).
Led by the state-owned Egyptian Electricity Transmission Company (EETC), the project seeks to integrate a total of 22 GW of renewable energy capacity into the national grid by 2030, enough to supply approximately 10 million households with electricity, according to the press release.
The programme includes the construction of substations and the deployment of transmission lines to connect solar and wind power generated in the Red Sea and Gulf of Suez regions to the national electricity grid.
The investment is intended to support national energy priorities, including the expansion of renewable energy capacity, the strengthening of electricity infrastructure, and the reinforcement of Egypt’s role as a regional energy hub.
The EU financing package accounts for 44% of the total programme cost, while the remaining funding will be provided by EETC’s own resources. The phase supported by the EIB is scheduled for implementation between 2027 and 2030.
The project is among the first concrete initiatives under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), a programme of the Pact for the Mediterranean, aimed at promoting cooperation on renewable energy and clean technologies between the EU and its southern Mediterranean partners.
Egypt is also advancing its ambition to become an electricity exporter to Europe, notably through the development of the GREGY interconnection project, which aims to transmit 3 GW of renewable electricity to Europe via a submarine HVDC cable. The GREGY project is the second electricity link between Egypt and Greece, alongside EuroAfrica. Both projects, however, remain at the planning stage as of mid-2026 (Enerdata Global Energy Research).