Egypt’s NWFE program has secured $4 billion in concessional financing from key development partners to advance its renewable energy sector. This major funding will help the country expand its clean energy capacity and reduce its reliance on fossil fuels, according to a report from the Ministry of Planning, Economic Development, and International Cooperation.
As part of the National Framework for Energy (NWFE) program, Egypt aims to add 10 gigawatts (GW) of renewable energy to its grid, with a total investment of $10 billion. In parallel, the country plans to phase out 5 GW of fossil fuel-based power by 2028. These steps align with Egypt’s broader energy goals and contribute to its sustainable growth.
The report highlights strong partnerships between Egypt’s Ministry of Planning, the European Bank for Reconstruction and Development (EBRD), the Ministry of Electricity and Renewable Energy, and other national entities. These collaborations have led to power purchase agreements (PPAs) for 4.2 GW, signed with private sector leaders, including Saudi Arabia’s ACWA Power, UAE’s AMEA Power, and Norway’s Scatec.
In line with its energy transition, Egypt has already decommissioned 1,200 megawatts (MW) of inefficient thermal power plants. This is part of a larger plan to phase out 5,000 MW of fossil fuel-based power generation.
The country has also secured funding to complete the financial closure of seven renewable energy projects, including solar and wind power initiatives. These projects are key to Egypt’s clean energy transition.
To improve the national electricity grid, Egypt is receiving concessional financing for smart grid development. A €53 million project, partially funded by a €3 million grant, will increase the capacity of the Abees Transformer Station and stabilize the grid in New Abu Qir City. The project will also enhance the transmission of renewable energy from the Red Sea region to Egypt’s northern coastal areas.
In addition, Egypt has signed agreements to modernize its electricity distribution infrastructure. This includes a €60 million investment from the French Development Agency (AFD) for the Alexandria Regional Control Center, with €10 million in grant funding from the European Union (EU).
Egypt’s energy transition is a key component of the country’s National Climate Strategy 2050. The goal is to reduce carbon dioxide (CO₂) emissions by 17 million tons annually, in line with global Sustainable Development Goals (SDGs) on clean energy and climate action.
The move towards renewable energy is also expected to save Egypt $1.2 billion each year. This comes from reducing the country’s dependence on fossil fuels for power generation.
With these bold steps, Egypt is solidifying its position as a regional leader in clean energy and taking significant strides toward a sustainable, low-carbon future.