Egypt, EU sign €125 mln in grants to boost renewables, green ammonia
Egypt and the European Union on Tuesday signed grant agreements worth €125 million to support renewable energy investments and a green ammonia project, the Ministry of Planning said.
The agreements were signed on the sidelines of an EU-organised conference on Egypt’s Sustainable Energy Outlook 2040 attended by Egypt’s Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat and Minister of Electricity and Renewable Energy Mahmoud Esmat.
Under the deals, the EU will provide a €90 million grant, managed by the European Investment Bank (EIB), to support upgrades to Egypt’s electricity grid and expand renewable energy capacity. A separate €35 million grant will go to Norway’s Scatec to support a green ammonia project in Ain Sokhna.
Speaking at the conference, Al-Mashat said the transition to secure, efficient and sustainable energy systems was a key pillar of Egypt’s broader development strategy, aimed at promoting long-term economic growth while meeting climate goals.
She said the agreements reflected the depth of the strategic partnership between Egypt and the EU, particularly as global economic and energy shifts increase the need to balance growth, energy security and emissions reduction.
Egypt has adopted an ambitious energy strategy through 2040 focused on expanding renewable energy, improving energy efficiency and maximising the use of diverse resources, Al-Mashat said, adding that the plan supports Egypt’s goal of becoming a regional energy hub in the eastern Mediterranean.
She also highlighted the comprehensive strategic partnership launched between Egypt and the EU in March 2024, noting that energy is a central pillar of the framework, supported by concessional financing, investment guarantees and technical assistance.
Al-Mashat said Egypt’s NWFE Platform, which integrates water, food and energy projects, has mobilised around $5 billion over three years to develop 4.2 gigawatts of renewable energy capacity through private-sector investment.
She added that European financing tools, including the European Fund for Sustainable Development Plus (EFSD+) and the EU’s T-MED Initiative, are playing an important role in attracting investment into renewable energy, green hydrogen, energy efficiency and power grid upgrades in Egypt.
Attribution: Amwal Al Ghad English