EU Commission and Egypt present major electricity grid project
On the margins of the 11th EU-Egypt Association Council in Luxembourg today, the EU Commission present the first flagship operation under the Trans-Mediterranean Renewable Energy and Clean Tech Cooperation (T-MED) worth a total of €690 million (€600 million loan by the European Investment Bank and up to €90 million grants by the Commission) to modernise and expand Egypt’s national electricity grid. The total expected public and private investment for this project amounts to €1.6 billion, and it will advance the objectives of the EU-Egypt Strategic and Comprehensive Partnership.
It will help Egypt integrate 22 GW of renewable energy by 2030 – enough to power 10 million homes in the country. The initiative will upgrade critical substations and transmission lines in the Red Sea and Gulf of Suez regions, reducing energy losses and improving grid reliability. Furthermore, by delivering 10.4 GW of renewable power, the project will support Egypt’s transition away from fossil fuels, in line with the country’s own 2040 targets, while creating opportunities for European companies in the fields of grid infrastructure and clean energy technologies. Construction is planned to start in 2027, with first renewable energy flows expected by 2028.
The project will be presented this afternoon by Dubravka Šuica, Commissioner for the Mediterranean, and Egypt Foreign Affairs Minister Badr Abdelatty, together with President and Vice-President of the European Investment Bank, Nadia Calviño and Gelsomina Vigliotti. Commissioner Dubravka Šuica said: “The Pact for the Mediterranean keeps delivering. Under its newly launched flagship initiative, T-MED, today we presented a major EU-supported project to strengthen and expand Egypt’s electricity infrastructure. This will reinforce Egypt’s role in the regional energy markets and create major business opportunities for local and European companies. It is another testimony of our shared commitment to sustainable growth, energy security and long-term prosperity in the Mediterranean.”