EU grants €125 M to support renewable energy in Egypt

CAIRO – 10 February 2026:  The European Union (EU) has signed two grants totaling €125 million to strengthen renewable energy capabilities in Egypt and support the green ammonia project in Ain Sokhna.

The EU has committed a €90 million grant, managed by the European Investment Bank, to enhance investments in Egypt’s electricity network and advance renewable energy capacities.

Additionally, a €35 million grant has been allocated to the Norwegian company Scatec to support the green ammonia project in Ain Sokhna.

Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, stressed that transitioning to sustainable, secure, and efficient energy systems is essential for driving comprehensive development in Egypt. This aligns with the country's national development agenda focused on achieving sustainable economic growth, enhancing the economy's competitiveness, and meeting climate action objectives.

She noted that Egypt has adopted an ambitious energy strategy through 2040, which emphasizes the expansion of renewable energy sources, improvement of energy efficiency, and optimization of diverse resources. This strategy strengthens Egypt’s role as a regional energy hub in the Eastern Mediterranean and supports the achievement of sustainable development goals.

The Minister also highlighted that the strategic and comprehensive partnership launched between Egypt and the EU in March 2024 marked a significant milestone in bilateral relations. This partnership represents the highest level of collaboration the EU establishes with countries worldwide, with the energy sector playing a central role. The partnership includes integrated funding packages, investment guarantees, and technical support.

She emphasized the critical role of the Ministry of Planning, Economic Development, and International Cooperation in coordinating international partnerships and ensuring that investments align with Egypt's national priorities, especially the energy sector transformation. This involves close collaboration with key European funding institutions, notably the European Investment Bank and the European Bank for Reconstruction and Development.

In this context, the Minister presented the NWFE platform as a leading national model for integrating the water, food, and energy sectors. Over the past three years, the platform successfully mobilized approximately $5 billion to implement renewable energy projects totaling 4.2 GW through private sector investments, reinforcing Egypt’s position as a regional leader in climate finance and green development.

She also underscored the significance of the “European Sustainable Development Fund Plus” (EFSD+) in promoting European investments in Egypt, particularly in renewable energy, green hydrogen, energy efficiency, and the modernization of electricity networks, alongside the T-MED initiative for Mediterranean cooperation in clean energy and technology.

The Minister concluded by stressing that the transformation of the energy sector is a fundamental component of Egypt’s national development strategy. This strategy integrates economic policies, investments in human capital, private sector empowerment, and green transformation, ensuring inclusive and sustainable growth while enhancing the resilience of Egypt’s economy to global shocks.