European Union Commits EUR 690 Million to Egypt Grid Upgrade Project
The package includes a EUR 600 million European Investment Bank loan and EUR 90 million in European Commission grants.
A EUR 690 million financing package from the European Union will support upgrades to Egypt's electricity transmission network and enable the integration of 22 GW of new renewable energy capacity by 2030.
The package represents the largest single European Union investment in clean energy infrastructure in the country to date. The funding consists of a EUR 600 million loan from European Investment Bank Global and EUR 90 million in grants from the European Commission.
It marks the first project to be implemented under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, which serves as the energy pillar of the EU's Pact for the Mediterranean. The Egyptian Electricity Transmission Company will use the financing to build new substations and high-voltage transmission lines, allowing solar and wind energy generated in the Red Sea and Gulf of Suez regions to be connected to the national grid.
European Union financing will cover 44% of the programme's overall cost, with the Egyptian Electricity Transmission Company providing the remainder from its own resources. The European Investment Bank-backed phase is scheduled to run from 2027 to 2030, with the Central Bank of Egypt acting on behalf of the government as borrower.
The announcement coincided with the EU-Egypt Association Council meeting in Luxembourg, the first since the signing of the Strategic and Comprehensive Partnership between Egypt and the European Union in 2024. The Trans-Mediterranean initiative falls under the EU's Global Gateway programme, which aims to mobilise up to EUR 300 billion in infrastructure investment worldwide by 2027. Grid investments have accelerated in recent years.
The European Bank for Reconstruction and Development committed EUR 200 million to grid upgrades in 2025. According to the bank, more than 10 GW of renewable power purchase agreements have been signed in Egypt, with nearly 6 GW reaching financial close and attracting more than EUR 4.3 billion in private investment.
