Egypt Allocates EGP 18.15 Billion to Purchase Electricity from Solar and Wind

Egypt allocates EGP 18.15 billion to purchase electricity from solar and wind energy 

Egypt Allocates EGP 18.15 Billion to Purchase Electricity from Solar and Wind

The Egyptian Ministry of Electricity and Renewable Energy has raised its estimate for the purchase of electricity generated from renewable sources to EGP 18.15 billion during the 2025-2026 fiscal year, an expected increase of more than 10%, or EGP 1.65 billion, compared to the previous fiscal year's purchases of EGP 16.5 billion. This increase is driven by the addition of new capacity to the national grid and the impact of the liberalization of the Egyptian pound's exchange rate, which increased the cost of purchases, partly paid in dollars.

New Projects and Added Value

The Ministry attributes this increase in the value of purchases to the entry into service of three major projects, which added a total of 1,006 megawatts to the grid. These projects include the 500 MW Abydos solar plant owned by the Emirati company AMEA Power, a 306 MW wind farm owned by a consortium of Orascom Construction, Japan's Toyota, and France's Engie, and a 200 MW solar project in Kom Ombo owned by Saudi Arabia's ACWA Power. Connecting these plants will increase the amount of energy purchased from the private sector, which had already risen by 20% year-on-year during 2024-2025.

Impact of Foreign Exchange Liberalization and Future Trends

A government official attributes the increase in the bill to the liberalization of the Egyptian pound's exchange rate in March 2024. This led to an increase in the dollar exchange rate against the Egyptian pound from EGP 31 to EGP 49, directly impacting the cost of purchasing energy, as approximately 25% of the contract value is paid in dollars. The Egyptian Electricity Transmission Company (EETC) is responsible for purchasing energy from investors and connecting their projects to the national grid.

The Egyptian government is working to strengthen its position as a regional energy trading hub, aiming to increase the share of renewable energy to 42% of the total energy mix by 2030. This goal was emphasized by Minister of Electricity Mahmoud Esmat in his recent discussions with the Emirati company Masdar to accelerate the implementation of existing projects.