Egypt plans to replace low-efficiency conventional power stations with 700 megawatts of clean electricity from solar, wind and hydropower sources this year, according to an official familiar with the renewable energy portfolio at the Ministry of Electricity and Renewable Energy.
The transition is part of a broader government push to diversify Egypt’s energy mix and reduce dependence on imported fuel as natural gas output declines.
Investments required for the 700 MW capacity range between $650 million and $750 million, the official said, requesting anonymity due to the sensitivity of the discussions. The high upfront cost of renewable projects is expected to be financed in partnership with foreign investors.
Last week, the government signed agreements with Norway’s Scatec ASA and China’s Sungrow Power Supply Co. to develop two renewable energy projects worth more than $1.8 billion. The plans include a massive 1.7 gigawatt solar power station, with output to be distributed across Minya, Qena and Alexandria governorates.
Egypt’s national grid currently operates between 48,000 and 49,000 MW in conventional capacity, covering roughly 85% of domestic demand, the source said.
Gas crunch drives energy shift
Efforts to pivot toward renewables began three years ago, but electricity supply shortages delayed implementation. “We will begin the replacement plan in 2025 with 1,050 megawatts,” the official said.
By the end of 2025, renewable sources had contributed about 8,860 MW to the grid—around 18% of domestic consumption. The government aims to raise that share to 42% by 2030, and 65% by 2040.
The official added that a government committee is monitoring the transition and expects annual reductions in imported fuel use—gas and fuel oil—by about 5%. Egypt’s conventional plants require approximately 3.2 billion cubic feet of gas and 6,000–7,000 tons of mazut per day.
The push to scale up renewables comes as Egypt grapples with falling domestic gas output since 2023, which has forced electricity rationing and disrupted industrial activity.
Currently, the national grid handles around 33,000 MW per day—6,000 to 7,000 MW below peak summer demand, the official said. The Energy Ministry projects a 4% rise in electricity consumption by the end of 2026.
To meet this, the ministry plans to add new renewable and conventional units.
