Egypt to Expand Renewable Energy Capacity by 750 MW with USD 700 Million Wind and Solar Projects

The Egyptian Ministry of Electricity and Renewable Energy plans to increase its electrical capacity by 750 MW with two new renewable energy projects, set for completion by the end of 2024, according to media reports.

The projects, involving wind and solar energy, require a total investment of USD 700 million. The first project, a 250 MW wind energy installation, will begin operations this August. This initiative is a collaboration between Orascom Construction, Toyota, and Engie, and is located in the Gulf of Suez near Ras Gharib. Additionally, a 500-megawatt solar power station, developed by the Emirati company Al-Nowais in Kom Ombo, Aswan governorate, is expected to be operational by October.

It may be noted that Egypt has been actively expanding its clean energy sector to diversify its energy sources and meet growing electricity demand. The country has set ambitious goals for increasing the share of renewable energy in its energy mix, targeting 42 percent of electricity generation from renewable sources by 2035. Key developments include the Benban Solar Park in Aswan, one of the world's largest solar parks with a total capacity of 1.8 GW, and the Gabal El-Zeit wind farm, which leverages strong wind corridors along the Gulf of Suez and has a capacity of 580 MW.

These projects, along with investments in nuclear and hydropower, reflect Egypt's commitment to a sustainable energy future. The government has introduced various policies and incentives to attract investment in renewable energy, including feed-in tariffs, tax exemptions, and streamlined regulatory processes. Collaborations with international organisations and foreign investors, such as the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), further bolster Egypt’s efforts to become a regional hub for renewable energy.