Egypt and the European Union have announced a major financing package worth up to €690 million aimed at upgrading and expanding the Egyptian electricity network to support the country’s growing renewable energy ambitions. The clean energy grid investment combines a €600 million loan from EIB Global, the development arm of the European Investment Bank, with up to €90 million in grants from the European Commission. The state-owned Egyptian Electricity Transmission Company (EETC) will lead the initiative, which targets the integration of 22 gigawatts of renewable energy capacity into the national grid by 2030 — enough to power approximately 10 million households.
The programme involves the construction of state-of-the-art substations and the installation of advanced transmission lines designed to channel solar and wind power generated in the Red Sea and Gulf of Suez regions into the national grid. These upgrades to electricity infrastructure are expected to reduce transmission losses, improve reliability and bolster energy security across the country. The clean energy grid investment also supports Egypt’s broader strategic goal of becoming a regional clean-energy hub and advancing sustainable economic development.
This initiative represents one of the first concrete operations under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, known as the T-MED initiative, a flagship programme within the Pact for the Mediterranean. The T-MED initiative is designed to strengthen renewable energy and clean-technology cooperation between the European Union and its southern Mediterranean partners, contributing to the EU’s Global Gateway strategy.
H.E. Badr Abdelatty, Minister of Foreign Affairs, International Cooperation and Egyptian Expatriates, said: “This agreement reflects the strength of the partnership between Egypt and the European Union and our shared determination to advance the green transition. Together with the EIB and the EU, we are taking an important step to modernise our electricity network, strengthen energy security and create new opportunities for sustainable growth. This is the kind of practical cooperation that brings real benefits to our economy and our people.”
European Commissioner for the Mediterranean Dubravka Šuica stated: “The Pact for the Mediterranean keeps delivering. Under its newly launched flagship initiative, T-MED, today we presented a major EU-supported project to strengthen and expand Egypt’s electricity infrastructure. This will reinforce Egypt’s role in the regional energy markets and create major business opportunities for local and European companies. It is another testimony of our shared commitment to sustainable growth, energy security and long-term prosperity in the Mediterranean.”
EIB Vice-President Gelsomina Vigliotti added: “This project is a very concrete example of what the partnership between Egypt and the European Union can achieve. By working together, Egypt, the EU and the EIB are supporting the expansion and modernisation of the electricity network, unlocking more renewable energy and strengthening the country’s role as a regional energy hub. For the EIB, this is about backing sustainable growth, greater energy resilience and better opportunities for people and businesses across the country.”
The EU financing package covers 44% of the total programme cost, with the remaining share funded through EETC’s own resources. This shared financing structure underscores the joint commitment of Egypt and its European partners to deliver long-term investment in clean, reliable and resilient energy infrastructure. The EIB Global-supported phase of the programme is scheduled for implementation between 2027 and 2030. The government of Egypt will serve as borrower through the Central Bank of Egypt, while EETC will lead the execution of the project as part of wider efforts to modernise the national electricity system. The investments will also contribute to regional electricity cooperation and future clean-energy trade and integration across the Mediterranean, reinforcing Egypt’s position in regional renewable energy markets.