Egypt signs renewable power deals for SCZONE projects
Egypt signed two agreements on Wednesday to supply renewable electricity to projects in the Suez Canal Economic Zone (SCZONE), as it seeks to decarbonise ports and industrial zones while expanding the use of clean energy in manufacturing and logistics.
Prime Minister Moustafa Madbouly witnessed the signing ceremony at the Cabinet headquarters in the New Capital, alongside Electricity and Renewable Energy Minister Mahmoud Esmat, and SCZONE Chairman Waleid Gamal El-Dien.
The agreements were signed between the New and Renewable Energy Authority (NREA), SCZONE Infrastructure Company, and Suez Canal Container Terminal (SCCT), according to a government statement.
Under the first agreement, SCZONE Infrastructure Company will use its electricity distribution network to supply renewable electricity generated by NREA-owned plants to industrial and commercial customers operating within the economic zone. The electricity will be transmitted through Egypt’s national grid.
The second agreement provides for the sale of renewable electricity from NREA facilities to Suez Canal Container Terminal under a one-year power purchase agreement, enabling the terminal to source clean electricity for its operations at East Port Said Port.
The agreements are intended to reduce carbon emissions from port operations and support environmental sustainability while helping companies meet increasingly stringent global trade and supply chain requirements, the statement said.
Prime Minister Moustafa Madbouly said the agreements reflect Egypt’s commitment to expanding the use of clean energy through partnerships between the government and the private sector.
“They represent a successful model of cooperation to advance Egypt’s green transition and improve the efficiency of ports and industrial zones,” he said.
Electricity Minister Mahmoud Esmat said expanding renewable energy supplies to industry would enhance the competitiveness of Egyptian exports as international markets increasingly require lower-carbon products.
He said Egypt remains on track to raise the share of renewable and clean energy in its electricity generation mix to 45 per cent within the next two years, supported by accelerated investments in solar and wind projects and partnerships with the private sector.
SCZONE Chairman Waleid Gamal El-Dien said the agreements form part of SCZONE’s strategy to integrate sustainability into the development and operation of its ports and industrial zones.
He said expanding the use of renewable energy would help reduce the carbon footprint of logistics operations while strengthening SCZONE’s position as a sustainable industrial and logistics hub linking markets in Asia, Africa and Europe.
Suez Canal Container Terminal, operated by APM Terminals, a unit of Denmark’s A.P. Moller-Maersk, manages the main container terminal at East Port Said Port. The terminal completed an expansion in 2025, according to the statement.
The agreements also support Egypt’s National Climate Change Strategy 2050 and align with Maersk’s target of achieving net-zero greenhouse gas emissions by 2040.
Attribution: Amwal Al Ghad English