Industry
Insight
CLEAN ENERGY
New incentives and a
favorable regulatory
environment have
accelerated projects for
renewable energy, green
hydrogen and ammonia.
Khaled Sewelam
Director, Research and Publications
Amira Sheha
Senior Research Manager
Farah Zayed
Senior Economic Researcher
Shahd Atef
Economic Researcher
Kate Durham
Editor and Senior Head of Corporate
Publications
Nessim Nawar
Creative Manager
Marina Emad
Graphic Designer, Team Leader
Monica Mokhles
Senior Graphic Designer
Nourhan Elbakry
Graphic Designer
Naglaa Qady
Graphic Designer
Hani Elias
Production Supervisor
Amany Kassem
Director, Business Development
Sara Amer
Business Development Coordinator
Malaka Mashhour
Business Development Coordinator
Omar Zain
Business Development Coordinator
Aly Zayed
Business Development Coordinator
* * * * *
© 2025 American Chamber of
Commerce in Egypt (AmCham
Egypt). All rights reserved.
Unauthorized reproduction,
copying, remailing, storage or
website posting is prohibited.
This publication is produced
by AmCham Egypt’s Research
Department. The data is current
as of April 20, 2025, and has
been verified to the best of the
publisher’s ability.
IN THIS REPORT
11 OIL & GAS
The government is
encouraging more exploration
for traditional fuels, looking to
meet local and export demand
during the transition to more
sustainable energy sources.
18
REGIONAL ENERGY
COLLABORATION
Egypt is moving forward
with regional partnerships
to enhance energy
infrastructure, security, and
trade.
24 ATTRACTING FINANCE
AND INVESTMENTS
Foreign investments, public-
private partnerships, and other
financing mechanisms are
crucial for growing the energy
sector.
CLEAN ENERGY
The transition to clean energy is a critical element of Egypt’s sustainable
development. Increasing the use of renewable sources like wind and solar power
will help the country meet its energy needs and adapt to climate change. And as
the waste-to-energy (WtE) and green hydrogen and ammonia sectors scale up,
Egypt can market itself as an exporter of clean electricity and green fuels.
The Ministry of Electricity and Renewable Energy’s Integrated Sustainable
Energy Strategy 2035 (ISES 2035), adopted in 2016, sets the foundation for Egypt’s
transition to a more sustainable energy landscape and positions the country as
an energy hub connecting Europe, Asia, and Africa. The ISES 2035 document
aims to increase the share of renewable energy in the energy mix to 42% by 2030
and 60% by 2040.
Solar, wind, and hydropower accounted for 11.6% of Egypt’s energy mix in 2023,
according to the energy research company Enerdata. In October 2024, the new
Minister of Petroleum and Mineral Resources (MPMR) announced a revised goal
for Egypt to generate 40% of its electricity from renewable sources by 2040,
however, an updated ISES has not yet been issued.
Clean Energy
Industry Insight .3
As of 2023, Egypt’s total renewable energy capacity
stood at 6.7 gigawatts (GW), including hydropower,
solar, wind, and bioenergy projects. According to the
most recent New and Renewable Energy Authority
(NREA) Annual Report, the authority’s renewable
energy projects had an installed capacity of 1.6 GW,
generating more than 4,000 gigawatt-hours (GWh) of
energy in 2023. That same year, private sector projects
had nearly 2 GW of installed capacity producing more
than 6,590 GWh.
In July 2024, the government announced Egypt
had a combined installed capacity of 4.6 GW for wind
and solar energy and 2.8 GW of hydroelectric energy
capacity.
In an October 2024 report, the Economist Intelligence
Unit (EIU) forecast Egypt would have a total renewable
energy capacity of 7 GW by the end of the year.
The Africa Solar Industry Association ranked Egypt
second on the continent, after South Africa, in terms
of installed solar capacity at the end of 2024. Egypt
accounted for 28.6% of Africa’s total solar energy.
Egypt has allocated EGP 99.9 billion (USD 1.97 billion) for
48 renewable energy projects in the FY 2024/25 budget.
According to the January 2025 NREAmeter report, there
were 20 megawatts (MW) of public sector projects and
17.3 GW of private sector projects under construction
and under development through 2030, the latter being
developed under a build, own, operate (BOO) model.
Renewable Energy Market
Sources: EIU, Enerdata, ISES 2035
Share of Renewables in Egypt’s Energy Mix
Actual (2023)
Total share: 11.6%
Total share: 42%
2030 Targets
Solar: 2%
Hydropower: 6.6%
Wind: 14%
Hydropower: 2%
Solar: 26%
Wind: 3%
Power Sector Indicators
2020
2021
2022
2023
Capacity (MW)
Total renewable energy
5,933.5
6,257.5
6,321.5
6,709.0
Hydropower
2,832.0
2,832.0
2,832.0
2,832.0
Solar energy
1,643.0
1,663.0
1,724.0
1,856.0
Wind power
1,380.0
1,640.0
1,643.0
1,890.0
Bioenergy
79.0
123.0
123.0
131.0
Generation (terawatt hours, TWh)
Total renewable energy
24.6
24.7
24.2
24.7
Hydropower
14.9
14.3
13.3
13.8
Solar energy
4.5
5.1
5.4
5.2
Wind power
5.2
5.4
5.5
5.7
Sources: EMIS, CEIC, International Renewable Energy Agency (IRENA), Energy Institute
4. AmCham Egypt
Source: EIU
40.4%
29.7%
29.0%
0.9%
Hydropower
Wind
Solar
Other non-hydro renewables
Egypt’s Renewable Energy Capacity (2024)
Total: 7,013 MW
Source: EIU
13,484
13,497
13,511
13,524
13,538
14,985
15,000
15,075
10,915
11,285
12,087
14,627
17,038
20,889
25,704
48,040
2022
2023e
2024f
2025f
2026f
2027f
2028f
2033f
Hydropower
Non-hydropower
Electricity Generated from Renewables (GWh)
Egypt’s abundant land, strong winds, and high solar
radiation make it an ideal hub for renewable energy.
The country is considered a sun belt nation, with
9-11 hours of daily sunlight and 2,000-3,000 kWh/m²
of direct solar radiation annually. The World Bank’s
Solar Atlas estimates Egypt’s solar capacity at 52.3
GW, particularly in the East and West Nile regions.
Average wind speeds reach 10.5 meters per second
(m/sec) along the Gulf of Suez and 7.5 m/sec along
the Nile banks in the Eastern and Western deserts.
The World Bank’s Global Wind Atlas estimates
Egypt’s wind power potential at 31.2 GW.
ISES 2035 incorporates the Egyptian Solar Plan,
launched in 2012 as a strategy to add 3.5 GW of
solar energy (2.8 GW concentrated solar power
(CSP) and 700 MW photovoltaic (PV)) by 2027. The
plan introduced mechanisms such as a competitive
bidding process for solar projects, feed-in tariffs,
and third-party access schemes to encourage
investment.
Solar and Wind Power
Clean Energy
Industry Insight .5
Source: EIU
6,280
7,218
7,984
9,515
11,430
14,493
18,322
35,170
1,640
1,885
2,085
2,485
2,985
3,785
4,785
9,185
2022e
2023e
2024f
2025f
2026f
2027f
2028f
2033f
Generation (GWh)
Capacity (MW)
Wind Generation and Capacity
Source: EIU
20
40
60
80
100
120
140
240
2022e
2023e
2024f
2025f
2026f
2027f
2028f
2033f
Other Non-Hydro Renewables Capacity (MW)
Source: EIU
4,635
4,057
4,104
5,111
5,608
6,396
7,382
12,849
1,704
1,836
2,036
2,536
3,036
3,736
4,536
8,536
2022e
2023e
2024f
2025f
2026f
2027f
2028f
2033f
Generation (GWh)
Capacity (MW)
Solar Generation and Capacity
6. AmCham Egypt
Major Solar and Wind Energy projects
ACWA Power (Saudi Arabia)
Scatec (Norway)
AMEA Power (UAE)
Infinity Power (Egypt) and Masdar (UAE)
• Wind Farm (2 GW)
o Investment: SAR 8.6 billion (USD 2.3 billion)
o Location: South Hurghada
o Status: Power Purchase Agreement (PPA) signed
with Egyptian Electricity Transmission Company
(EETC) in February 2025, financial close due in 2026
• Wind Farm (1.1 GW)
o Investment: USD 1.2 billion
o Location: Gulf of Suez
o Partner: Hassan Allam Utilities
o Status: Financial close reached, commercial
operations expected in Q2 2027
• Obelisk Solar Project (1 GW)
o Investment: USD 600 million
o Location: Nagaa Hammadi, Qena
o Status: Announced in September 2024, received
Golden License granting expedited approvals in
December 2024
• Egyptalum Solar Project (1.1 GW) with BESS (200 MWh)
o Investment: USD 650 million
o Location: Nagaa Hammadi, Qena
o Status: 25-year corporate PPA with Egyptian
Aluminum Company (Egyptalum) signed in March
2025. Construction is to begin within 12 months.
• Abydos Solar PV Power Plant (500 MW)
o Investment: USD 500 million
o Location: Kom Ombo, Aswan
o Status: Commissioned in December 2024, with
PPA signed with the EETC in 2019
• Battery Energy Storage Systems (BESS) extension
to Abydos (300 MWh)
o Status: Project announced in September
2024, billed as Egypt’s first utility-scale BESS
solution
• Solar PV Power Plant (1,000 MW) and BESS (600 MWh)
o Investment: USD 850 million (combined with the
300 MWh BESS expansion for Abydos)
o Location: Benban, Aswan
o Status: Project announced in September 2024,
planned to be the largest solar-plus-BESS project
in Africa
• Amunet Wind Farm (500 MW)
o Investment: USD 709 million
o Location: Ras Ghareb, Red Sea
o Status: Expected to start commercial operations
in Q2 2025. PPA signed with the EETC in 2019
• Wind Farm (200 MW)
o Investment: USD 212 million
o Location: Ras Ghareb, Gulf of Suez
o Status: Agreement finalized in August 2024, with
PPA signed with EETC
Infinity Power, Masdar, and Hassan Allam Utilities (Egypt)
Source: News outlets
Solar
Total investments: USD 1 billion
• Solar Power Plant (900 MW) and Battery Storage
(600 MWh)
o Location: Dakhla Oasis, New Valley Governorate
o Status: 20 sq km of land secured, expected
completion in H2 2025
• Solar Power Plant (300 MW) and Battery Storage
(60 MWh)
o Location: Benban Solar Park, Aswan
o Status: Expected completion before the end of 2025
Wind
• Wind Farm (10 GW)
o Investment: USD 11 billion
o Location: Sohag
o Status: Signed land access agreement in May 2024
Green Hydrogen
o Investment: USD 15 billion
o Location: Suez Canal Economic Zone (SCZone)
o Partner: bp
o Status: Expected to be fully operational by 2034
Clean Energy
Industry Insight .7
In November 2024, Egypt’s TAQA Arabia and
France’s
Voltalia
signed
a
memorandum
of
understanding (MoU) to repower the Zafarana wind
farm, collaborating with the Egyptian Electricity
Transmission Company (EETC) and NREA. The project
will combine 1.1 GW of wind and 2.1 GW of solar power,
with studies concluding by December 2025.
In December, Dubai-based Alcazar Energy and the
government agreed to establish a USD 2.5 billion hybrid
renewable energy project in Zafarana. The project will
generate 2 GW of solar and 1.1 GW of wind energy.
In January 2025, Egyptian companies Korra Energi
and SolarizEgypt agreed to implement solar energy
projects totaling 100 MW. These projects, valued at
USD 50 million, will focus on serving the tourism and
industrial sectors.
In February, Egypt and Saudi Arabia signed an
executive plan for cooperation in energy efficiency,
which includes establishing a joint entity for energy
efficiency projects and exchanging expertise.
The NWFE Program, launched in 2022, integrates
climate projects with a unified national vision to
transition
Egypt’s
renewable
energy
landscape.
The program includes nine priority projects under
three pillars—water, food, and energy—selected in
line with Egypt’s National Climate Change Strategy
(NCCS) 2050 and the National Agenda for Sustainable
Development: Egypt Vision 2030. The European Bank
for Reconstruction and Development (EBRD) is the
partner for the energy pillar.
The energy pillar aims to decommission 5 GW of
thermal power plants and attract USD 10 billion in
investments to develop 10 GW of renewable energy
projects between 2023 and 2028. Since its launch,
this program has attracted over USD 4.5 billion in
concessional financing for private sector-led projects
that will add 4.7 GW of renewable energy capacity. The
program is expected to reduce 17 million tons of CO₂
emissions and save USD 1.2 billion in fuel costs annually.
The Ministry of Planning, Economic Development,
and International Cooperation’s FY 2024/25 economic
and social development plan includes EGP 6.7 billion
(USD 132.7 million) in public investments for four
renewable energy projects expected to be integrated
into the national grid by summer 2025. The first phase
of these projects, part of the NWFE’s energy pillar, will
introduce 3.7 GW of solar energy and battery storage
capacity of 2.8 GWh.
Nexus of Water, Food and Energy (NWFE) Program
In August 2024, Egypt launched its National Low
Carbon Hydrogen Strategy, aiming to capture 5-8%
of the global hydrogen market by 2040. Egypt could
produce up to 5.8 million metric tons per annum
(MTPA) of green hydrogen, requiring USD 60 billion in
investment.
The country will focus on green and blue hydrogen,
retrofitting existing gray hydrogen plants with carbon
capture technology. The country also plans limited
biohydrogen production from biomass and waste.
If fully implemented, the strategy could boost
Egypt’s GDP by USD 10-18 billion by 2040. The National
Council for Green Hydrogen and its Derivatives will
monitor progress and propose updates to align with
global trends.
Green Hydrogen and Ammonia
8. AmCham Egypt
Source: EIU
National Low Carbon Hydrogen Strategy Scenarios
On January 28, Law 2 of 2024 came into effect, regulating
incentives offered for projects related to green hydrogen
and its derivatives. Under the law, projects that produce
green hydrogen and ammonia, as well as desalination
and renewable energy projects that directly support that
production are eligible for a Golden License, tax rebates
and exemptions, discounts on land and port usage fees,
relaxed customs requirements, and other benefits.
In February 2024, the government signed seven
agreements with international developers to implement
green hydrogen, green ammonia, and renewable energy
projects in the Suez Canal Economic Zone (SCZone),
valued at over USD 40 billion over the next decade. The
projects will involve investments of USD 12 billion for the
pilot phase and USD 29 billion for the first phase.
The USD 417 million Egypt Green integrated hydrogen
plant, located in the SCZone, started official operations
in June. Established by partners Fertiglobe (UAE), Scatec
(Norway), Orascom Construction (Egypt), and The
Sovereign Fund of Egypt, the plant supplies feedstock
for Fertiglobe’s two ammonia plants in Ain Sokhna. In
July, Fertiglobe won a contract worth EUR 397 million
(USD 433.6 million) to supply green ammonia to the
European Union starting in 2027.
Central Scenario
Implementation
Green Scenario (more ambitious)
2030
1.5 MTPA
1.4 MTPA
19 GW
USD 10 billion
5.8 MTPA
3.8 MTPA
72 GW
USD 24 billion
2040
Green hydrogen and derivatives production
Green hydrogen and derivatives exports
Investments needed in electrolyzers
Installed capacity of renewables needed
2030
3.2 MTPA
2.8 MTPA
41 GW
USD 22 billion
9.2 MTPA
5.6 MTPA
114 GW
USD 34 billion
2040
Green hydrogen and derivatives production
Green hydrogen and derivatives exports
Investments needed in electrolyzers
Installed capacity of renewables needed
Pilot Phase (until 2030)
Full Market Implementation (2040+) Consolidation of Egypt’s hydrogen leadership.
Scale-up Phase (2030-2040) Cost reduction and expansion to GW-scale production.
Initial projects, governance framework,
and investment incentives.