CAIRO - 16 June 2026: The European Union is allocating €690 million to support the modernization of Egypt’s electricity transmission network and help connect 22 GW of new renewable energy capacity to the national grid by 2030, according to an EU statement.
The financing package includes a €600 million loan from EIB Global and €90 million in grants from the European Commission. It represents the first concrete project under T-Med, the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, which the EU has described as the energy flagship of its new Pact for the Mediterranean.
The Egyptian Electricity Transmission Company (EETC) will use the funds to develop new substations and high-voltage transmission lines, enabling solar and wind power generated in the Red Sea and Gulf of Suez regions to be transferred to the national grid.
Badr Abdelatty, Minister of Foreign Affairs, International Cooperation and Egyptian Expatriates, said the agreement reflects the strength of Egypt’s partnership with the European Union and their shared commitment to supporting the green transition.
He added that cooperation with the EIB and the EU represents a key step toward upgrading Egypt’s electricity infrastructure, enhancing energy security, and opening new opportunities for sustainable growth.
According to the statement, EU funding will cover 44 percent of the total program cost, while EETC will finance the remaining share through its own resources.
The EIB-backed phase of the project is expected to run from 2027 to 2030, with the Egyptian government acting as the borrower through the Central Bank of Egypt.
The announcement came on the sidelines of the EU-Egypt Association Council meeting in Luxembourg, the first such meeting since Egypt and the EU signed their Strategic and Comprehensive Partnership in 2024.
EU High Representative Kaja Kallas said the talks focused on six strategic priorities: trade, investment, energy, green transition, migration, and people-to-people relations.
T-Med falls under the EU’s Global Gateway strategy and serves as the bloc’s energy cooperation platform in the Mediterranean. Global Gateway aims to mobilize up to €300 billion in infrastructure financing worldwide by 2027.
In 2024, the EU pledged a €7.4 billion package of loans, grants, and investments to Egypt through 2027 as part of the Strategic and Comprehensive Partnership.
The latest grid financing package is considered the largest concrete clean energy investment announced since that framework was signed. European institutions have also continued to support Egypt’s power grid, with the European Bank for Reconstruction and Development committing €200 million last year to help finance grid upgrades.
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