EU and Egypt Launch €690 Million Electricity Grid Upgrade

The European Union and Egypt announced a €690 million financing package to modernize and expand Egypt's national electricity transmission network. The agreement, unveiled during the EU-Egypt Association Council meeting in Luxembourg, represents the largest EU clean energy infrastructure project in Egypt and serves as the first primary operation under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative.

The funding consists of a €600 million loan from EIB Global and up to €90 million in grants from the European Commission. The state-owned Egyptian Electricity Transmission Company will lead the project and provide the remaining 56% of total costs, while the Central Bank of Egypt will serve as the borrower for the EIB-backed construction phase scheduled between 2027 and 2030.

Infrastructure work will focus on installing high-voltage lines and substations to connect wind and solar power from the Red Sea and Gulf of Suez regions to the national grid. The project aims to integrate 22 gigawatts of renewable energy capacity by 2030, which officials estimate could potentially power 10 million households. This initiative is part of the broader EU-Egypt Strategic and Comprehensive Partnership to advance the green transition and strengthen Egypt's role as a regional energy hub.