Egypt’s Integrated and Sustainable Energy Strategy until 2040 aims to secure electricity supply, diversify energy sources and maximise the share of renewable energy sources (RES) in the energy mix to reach 42 per cent by 2030 and over 65 per cent by 2040. The 2030 target includes 22 per cent from solar, 14 per cent from wind, 4 per cent from concentrated solar and 2 per cent from hydropower. In comparison, by June 2024, the share of RES (including hydro) in the total capacity was only around 11 per cent (or 6.8 GW), which is projected to increase to around 13 per cent (or 8.3 GW) by June 2025. Another 4.6 GW and 12.2 GW of RES are under construction and development, respectively, which, if completed, are likely to take the RES share to over 30 per cent. This capacity (16.8 GW) is almost entirely being developed by the private sector (except 20 MW).
The government is committed to increasing the electricity prices and fuel products, and achieving cost-recovery levels by December 2025 through a gradual plan to remove energy subsidies. Egypt had postponed electricity price liberalisation in 2022 due to Covid-19 and its impact. Further, the renewable energy sector received policy support, including the government’s latest national low-carbon hydrogen strategy, which requires at least 19 GW and 72 GW of RES capacity by 2030 and 2040 to produce 1.5 million tonnes (mt) and 5.8 mt of green hydrogen annually by 2030 and 2040 respectively, most of which will be exported. Additionally, the issuance of the Green Hydrogen Project Incentives Law aims to incentivise investments in the RES sector for green hydrogen and facilitate private-to-private renewables (as the market is moving away from the single-buyer model).
It is, however, essential to ensure greater investment in grid infrastructure and the provision of non-discriminatory access to the transmission network. For this, the government is undertaking reforms and restructuring the sector. In April 2025, the Ministry of Electricity and Renewable Energy officially announced that the Egyptian Electricity Transmission Company (EETC) has finally become an independent operator of the electricity transmission grid, separating it from its parent company, the Egyptian Electricity Holding Company (EEHC). In particular, following the launch of the economic reform programme with the support of the International Monetary Fund in 2016, Egypt introduced legislative amendments in the same year that aim to transform the state from a sole market player to a market regulator and unbundle generation, transmission and distribution activities to promote private sector participation. Initially, the state’s electricity companies were given eight years to complete the transition to a market regulator by 2023. However, in 2020, the deadline was extended by another two years till 2025.
On April 29, 2025, the Ordinary General Assembly of EEHC and EETC approved opening financial statements of the two companies as of July 1, 2024, after completing the separation process, based on the balances shown in the companies’ financial statements as of June 30, 2024. The General Assembly decided to assign the Board of Directors of each company to quickly complete the prescribed procedures in accordance with the findings of the report of the Separation Committee formed by Prime Ministerial Decree No. 1607 of 2024, including the preparation of the necessary contract models to regulate and govern contractual relations between the companies, in coordination with EETC and the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA). Separately, the Extraordinary General Assembly of the two companies approved amending the articles of association for each of them, in accordance with the provisions of the Electricity Law No. 87 of 2015, its executive regulations and amendments, and the Joint Stock Companies Law No. 159 of 1981 and its executive regulations and amendments, as part of completing unbundling procedures.
The decisions issued by the two companies’ general assemblies are the culmination of the efforts made over the past few months to segregate EETC as a network operator and to establish clear, specific and comprehensive controls that ensure the creation of a climate conducive to attracting local and foreign private investments in new renewable energy fields. It aims to ensure continuity and stability of the national electricity grid in a way that guarantees the sustainability of energy.
Post this segregation, EETC will exclusively undertake the activities of electricity transmission and network operation, and will be committed to allowing electricity producers to use its networks without discrimination, to supply electricity to distributors and consumers in return for a fee, in accordance with specific rules and standards approved by EgyptERA. It will also be committed to managing and maintaining the transmission network, implementing electricity transmission projects at extra and high voltages, regulating the procedures for buying and selling electricity.
This will ensure a level playing field and preserve the interests of electricity producers and consumers, help achieve efficiency and stability, as well as expand the injection of new investments, in line with the Electricity Law, thereby achieving the state’s goals for sustainable development.