Egypt’s energy officials engage with Chinese counterparts to boost renewable capacity through grid modernisation, pumped-storage hydropower, and technology transfer, while balancing its evolving 2040 targets and reliance on natural gas.
Egypt’s Electricity and Renewable Energy Minister Mahmoud Esmat has recently engaged in high-level discussions with a delegation from China Southern Power Grid International (CSGI) to deepen bilateral cooperation in accelerating the nation’s energy transition. The talks, held at the ministry’s headquarters in the New Administrative Capital, focused on enhancing electricity transmission and distribution systems, pumped-storage hydropower development, energy control systems, and integrating renewable energy into the national grid.
Central to these discussions was the advancement of energy planning systems and pumped-storage projects, integral to supporting grid stability and efficiency as Egypt expands its renewable energy capacity. Highlighting innovative strides, the meeting reviewed a pilot loss-reduction project in Abu Rawash conducted in partnership with the South Cairo Electricity Distribution Company. This initiative leverages advanced Chinese technologies, delivering a bespoke solution for Egypt’s local grid characterized by improved operational efficiency and reduced energy losses. Both sides considered scaling this approach as a model for upgrading distribution networks nation-wide, emphasising technology transfer and tailoring network infrastructure to smart monitoring, line restructuring, and load optimisation.
Pumped-storage hydropower was underlined by Esmat as a critical clean energy resource. The technology is seen as instrumental in ensuring the continuity and stability of the national grid amidst Egypt’s ongoing shift away from fossil fuels and towards renewables. The minister reaffirmed the government’s strategy to modernise the electricity grid progressively into a smart, flexible network capable of managing the increasing volumes of renewable generation added annually.
These moves align with Egypt’s ambitious national energy strategy, which targets increasing the share of clean and renewable energy to over 42% by 2030 and more than 65% by 2040. Esmat emphasised a comprehensive governmental plan to enhance service quality, boost energy efficiency, rationalise consumption, and reduce technical losses , all executed in collaboration with domestic and international partners employing cutting-edge technologies.
However, recent developments have introduced some complexity to Egypt’s renewable ambitions. In October 2024, the government revised its 2040 renewable target downward from 58% to 40%, signalling a renewed focus on natural gas. This adjustment comes amid efforts to restore confidence among international oil companies affected by prior financial difficulties, including currency shortages and unpaid arrears. Petroleum Minister Karim Badawi stressed the importance of expanding natural gas exploration and investment to sustain energy security and economic stability. This recalibration reflects Egypt’s dual-track approach: accelerating renewables while pragmatically maintaining natural gas as a crucial transitional fuel.
Nonetheless, Egypt’s commitment to renewable energy remains firm. In June 2025, Egypt achieved financial closure with the Norwegian company Scatec for a landmark 1 GW solar power plant, representing a $600 million investment, and signed a power purchase agreement for a separate 900 MW wind project in the Gulf of Suez, which is anticipated to attract further investments upwards of $1 billion. These projects are part of the government’s broader plan to hit the 42% renewable electricity generation target by 2030, a goal reiterated by Prime Minister Mostafa Madbouly at COP29. Madbouly, however, cautioned that without significant international financial support, sustaining this trajectory remains challenging amid financial constraints and earlier infrastructural setbacks such as power outages tied to fluctuating gas production.
Alongside these initiatives, international energy companies are expanding their footprint in Egypt’s renewables sector. For instance, French utility Engie recently completed Africa’s largest wind farm, the 650 MW Red Sea Wind Energy project, ahead of schedule. This development alone is expected to supply power to over a million households annually and reduce Egypt’s reliance on imported liquefied natural gas. Engie plans further projects in Egypt, targeting solar, wind, battery, and hybrid systems as part of its 95 GW renewable capacity ambitions by 2030 across the MENA region.
At the grassroots level, Egypt is also advancing smaller-scale solar projects funded by international grants, such as two solar power stations worth approximately $20.6 million supported by the European Union. These projects complement the country’s strategic vision by harnessing its high solar irradiation and vast desert landscapes to cement its role as a regional renewable energy hub.
Budgetary allocations reflect the government’s prioritisation of renewable infrastructure, with nearly $2 billion earmarked for 48 renewable projects in the fiscal year 2024/25. Egypt’s natural resource endowments, solar radiance averaging 9-11 hours daily, and strong wind speeds especially around the Gulf of Suez, position it favourably to expand capacity rapidly. According to reports, over 17 GW of private sector renewable projects are currently under construction or development through 2030, leveraging build-own-operate models to attract investment and operational expertise.
In summary, while Egypt faces the intricate balance of maintaining energy security through natural gas and actively pursuing renewable energy expansion, the recent ministerial talks with China underscore a strategic thrust to modernise grid infrastructure through international cooperation and technology transfer. The integration of pumped-storage hydropower and cutting-edge loss-reduction technologies is vital to enabling a stable grid capable of accommodating higher shares of renewables. Egypt’s diversified approach, combining ambitious renewable projects with pragmatic natural gas utilisation, reflects the complexities of its energy landscape and its aspiration to lead regional industrial decarbonisation efforts. The country’s success will depend heavily on sustained international support, investment flow, and adaptive policy implementation amid a rapidly evolving global energy context.
- https://egyptian-gazette.com/business/electricity-min-chinese-delegation-discuss-cooperation-in-renewable-energy/ – Please view link – unable to able to access data
- https://www.reuters.com/sustainability/climate-energy/egypt-cuts-2040-renewable-energy-target-40-keeps-focus-natural-gas-2024-10-20/ – In October 2024, Egypt revised its renewable energy target for 2040, lowering it from 58% to 40%, indicating a renewed emphasis on natural gas as a core component of its future energy strategy. This shift comes amid efforts to rebuild confidence with international oil firms hurt by previous operational slowdowns due to Egypt’s hard currency shortages and unpaid arrears. Petroleum Minister Karim Badawi stated at the Mediterranean Energy Conference 2024 that the focus remains on expanding natural gas exploration and investment to boost energy security and economic stability.
- https://www.reuters.com/sustainability/climate-energy/egypt-signs-financial-closure-deal-with-norways-scatec-1-gw-solar-plant-2025-06-15/ – In June 2025, Egypt finalized a financial closure agreement with Norwegian renewable energy company Scatec for the development of a 1 gigawatt (GW) solar power plant. This agreement enables the project to proceed to its construction phase and involves an investment of $600 million. Additionally, the Egyptian government signed a power purchase agreement with Scatec for a separate 900 megawatt (MW) wind energy project in the Gulf of Suez, which is expected to attract $1 billion in investment. These developments are part of Egypt’s broader strategy to boost renewable energy, with a goal of generating 42% of its electricity from renewable sources by 2030. Currently, the country’s electricity mix is dominated by natural gas, while solar, wind, and hydropower account for just 11.5%.
- https://www.reuters.com/business/energy/egypt-reaffirms-42-renewable-energy-goal-2030-urges-international-help-2024-11-12/ – At the COP29 conference, Egyptian Prime Minister Mostafa Madbouly reaffirmed Egypt’s goal to have renewable energy constitute 42% of the country’s electricity generation mix by 2030. However, he emphasized that this target is at risk without increased international support. Currently, renewable sources like solar, wind, and hydropower account for only 11.5% of Egypt’s power mix. The country has largely depended on natural gas, which was defended as a transitional fuel during COP27. Yet, financial challenges and declining gas production led to power outages in the past year, prompting Egypt to seek more foreign investment in renewables. Although an ambitious plan was introduced to raise renewable energy to 58% by 2040, conflicting statements from ministries have created uncertainty. Madbouly urged developed countries to honor their climate finance pledges, warning that without adequate backing, developing nations’ climate commitments may remain unfulfilled.
- https://www.reuters.com/sustainability/climate-energy/engie-targets-speedy-renewables-growth-mideast-north-africa-2025-07-01/ – French utility Engie has accelerated its renewable energy expansion by completing Africa’s largest wind farm—the 650 MW Red Sea Wind Energy project in Egypt—four months ahead of schedule. This project is expected to provide electricity to over a million households annually and support Egypt in reducing its reliance on imported liquefied natural gas. With permitting challenges slowing projects in Europe and U.S. offshore wind leases on pause, Engie is prioritizing the Middle East and North Africa (MENA) to reach its goal of 95 GW renewable capacity by 2030, up from 51 GW currently. Engie’s managing director for the region, François Xavier Boul, highlighted the region’s rapid economic growth, increasing energy demand, and supportive administrative processes as key incentives for investment. Engie is targeting further projects in Egypt, Morocco, UAE, and Saudi Arabia, focusing on solar, wind, battery, and hybrid energy systems. In addition to the Red Sea project, Engie has a 900+ MW site under development in Egypt and a preliminary agreement with Morocco’s OCP to explore renewables and green hydrogen initiatives starting in 2026. Ownership of the Red Sea Wind Energy project is shared between Engie (35%), Orascom Construction (25%), Toyota Tsusho (20%), and Eurus Energy (20%).
- https://www.reuters.com/sustainability/egypt-build-solar-power-stations-worth-20-mln-2024-04-15/ – Egypt has announced plans to construct two solar power stations valued at approximately $20.6 million, funded by a grant from the European Union. The first project, based at the Assiut Oil Refining Company, will cost around 550 million Egyptian pounds and is expected to deliver a 10-megawatt capacity within 11 months. The second project will be developed at the Egyptian General Petroleum Corporation (EGPC), with a 6.5-megawatt capacity and an investment of 500 million Egyptian pounds. These initiatives align with Egypt’s strategic goal to increase its renewable energy share in electricity generation to 42% by 2030, five years earlier than previously planned. Egypt aims to leverage its high solar irradiation and desert landscape to become a regional renewable energy hub, although it faces strong competition from other countries in North Africa and the Middle East.
- https://www.amcham.org.eg/publications/industry-insight/issue/100/clean-energy – Egypt has allocated EGP 99.9 billion (USD 1.97 billion) for 48 renewable energy projects in the FY 2024/25 budget. According to the January 2025 NREAmeter report, there were 20 megawatts (MW) of public sector projects and 17.3 GW of private sector projects under construction and under development through 2030, the latter being developed under a build, own, operate (BOO) model. Egypt’s abundant land, strong winds, and high solar radiation make it an ideal hub for renewable energy. The country is considered a sun belt nation, with 9-11 hours of daily sunlight and 2,000-3,000 kWh/m² of direct solar radiation annually. The World Bank’s Solar Atlas estimates Egypt’s solar capacity at 52.3 GW, particularly in the East and West Nile regions. Average wind speeds reach 10.5 meters per second (m/sec) along the Gulf of Suez and 7.5 m/sec along the Nile banks in the Eastern and Western deserts. The World Bank’s Global Wind Atlas estimates Egypt’s wind power potential at 31.2 GW. ISES 2035 incorporates the Egyptian Solar Plan, launched in 2012 as a strategy to add 3.5 GW of solar energy (2.8 GW concentrated solar power (CSP) and 700 MW photovoltaic (PV)) by 2027.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative was published on November 28, 2025, and there are no indications of it being recycled or republished from earlier sources. The Egyptian Gazette is a reputable publication, and the content appears original.
Quotes check
Score:
10
Notes:
No direct quotes were identified in the provided text, suggesting the content is original or paraphrased. The absence of direct quotes supports the originality of the narrative.
Source reliability
Score:
9
Notes:
The Egyptian Gazette is the oldest English-language daily newspaper in the Middle East, first published on January 26, 1880. It is part of El Tahrir Printing and Publishing House, a reputable organisation. However, the article does not provide specific author information, which slightly reduces the reliability score.
Plausability check
Score:
10
Notes:
The narrative aligns with Egypt’s ongoing efforts to enhance renewable energy integration and modernise its electricity grid. The focus on cooperation with China Southern Power Grid International (CSGI) is consistent with previous reports on Egypt’s energy initiatives. The absence of specific dates or figures does not significantly impact the plausibility of the content.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is original, published recently, and aligns with Egypt’s known energy strategies. The source is reputable, and the content is plausible without significant discrepancies.
