Egypt has announced a substantial investment plan totaling EGP 136.3 billion for its electricity and renewable energy sectors in the fiscal year 2025/26. The allocation, disclosed by the Ministry of Planning, Economic Development and International Cooperation, represents an 87.7 percent increase from the previous year’s budget of EGP 72.6 billion, reflecting the state’s intensified focus on energy infrastructure development. According to official documents, 73 percent of the funding will come from public investment sources, while 27 percent will be financed by the private sector.
The ministry stated that the plan targets enhancing national electricity output, reducing losses in the distribution network, and expanding cross-border energy connectivity. The government aims to raise electricity coverage to 99.8 percent of the population by June 2026. Egypt plans to generate approximately 235 billion kilowatt-hours of electrical energy during the fiscal year. The strategy includes the addition of 1,200 megawatts of new thermal generation capacity and upgrades to existing systems aimed at reducing power losses to 16.5 percent.
The sector’s total output is projected to reach EGP 655.6 billion by the end of FY 2025/26, with a long-term projection of EGP 984.5 billion by FY 2028/29. Its contribution to GDP is forecast to increase from around EGP 285 billion this year to nearly EGP 430 billion over the same period. Planned projects include the development and upgrading of power transmission and transformer stations in multiple regions, including North Sinai. The Mas’aid and Baghdad 220 kV substations are slated for expansion, alongside technical enhancements to the El-Tebbin 500/220/66 kV and East Ismailia 500 kV substations.
Power generation to reach 235 billion kWh under new plan
The government also plans to relocate several electrical installations that obstruct infrastructure and road development projects. On the regional interconnection front, Egypt is working to increase its energy exchange capacity to 3,900 megawatts. The interconnection line with Sudan is being upgraded from 80 megawatts to 300 megawatts. Meanwhile, construction is ongoing on the high-voltage direct current interconnection project with Saudi Arabia, which will have a capacity of 3,000 megawatts.
The country is also moving forward with electricity linkage agreements with Cyprus and Greece, including the planned 1,650-kilometre submarine cable connecting the eastern Mediterranean’s power grids. This investment plan is part of Egypt’s national sustainable development strategy and falls within its broader economic and infrastructure reform agenda. The energy sector remains a critical component of the country’s development priorities, especially as domestic electricity demand continues to rise and new industrial zones come online.
Renewable energy integration remains part of long-term plans
The Ministry of Planning emphasized that the FY 2025/26 allocations are designed to improve the reliability and efficiency of the national grid, expand renewable energy integration, and support economic growth through stable electricity supply. The plan does not include unapproved or speculative projects and is aligned with the government’s current financial and technical capabilities. No figures were disclosed regarding the specific proportion of funding allocated to renewable sources such as solar or wind, though the ministry noted that these sources remain integrated into the broader strategy.
The ministry confirmed that the disclosed investments form part of a phased, multi-year approach with implementation timelines set in accordance with approved technical and feasibility studies. The total investment earmarked for electricity and renewable energy constitutes a significant share of Egypt’s overall public investment plan for the fiscal year, which stands at EGP 1.5 trillion. The energy allocation accounts for more than 9 percent of this total, reflecting its priority within the state budget. – By Content Syndication Services.