Egypt has secured an $800 million financing package backed by the European Union to modernize and expand its electricity transmission network, reinforcing the country’s position as one of Africa’s fastest-growing clean energy markets.

The funding package combines a €600 million ($697 million) loan from EIB Global, the development arm of the European Investment Bank, with up to €90 million ($104 million) in grants from the European Commission. The investment will be implemented through the state-owned Egyptian Electricity Transmission Company (EETC).

The project is designed to integrate 22 gigawatts of renewable energy capacity into Egypt’s national grid by 2030, enough electricity to power roughly 10 million households.

Strengthening Egypt’s position as a regional energy hub

The investment comes as Egypt accelerates efforts to diversify its energy mix and expand renewable power generation. By strengthening transmission infrastructure, the country aims to improve grid reliability, enhance energy security and support large-scale solar and wind projects.

The initiative also aligns with Egypt’s broader strategy of becoming a regional energy hub connecting Africa, Europe and the Middle East through cross-border electricity and energy trade.

Foreign Minister Badr Abdelatty described the agreement as a significant step toward modernizing Egypt’s electricity network while creating new opportunities for sustainable economic growth and investment.

EU-Egypt partnership gains momentum

The deal represents one of the first major projects under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), a flagship program under the Pact for the Mediterranean.

European Commissioner for the Mediterranean Dubravka Šuica said the project demonstrates the European Union’s commitment to supporting sustainable growth, energy security and long-term prosperity across the Mediterranean region.

The investment is also expected to create business opportunities for Egyptian and European companies involved in power infrastructure, renewable energy development and clean technology.

Accelerating the green transition

As global demand for clean energy infrastructure rises, Egypt is emerging as a key destination for renewable energy investment.

The latest EU-backed financing package underscores growing international confidence in the country’s energy transition strategy while supporting its target of significantly increasing renewable energy capacity over the coming decade.

For investors and policymakers, the agreement signals a deeper EU-Egypt partnership focused on clean energy, sustainable development and long-term economic competitiveness across the Mediterranean and Africa.