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Egypt aiming for massive expansion in solar power capacity over next decade
Egypt aiming for massive expansion in solar power capacity over next decade
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Egypt aiming for massive expansion in solar power capacity over next decade
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28th April 2026
By: Reuters
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Egypt was opting big time for solar photovoltaic (PV) energy, to both expand and diversify its energy matrix, UK-based data analysis and intelligence company GlobalData has highlighted, in its most recent report, “Egypt Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035”. The country was accelerating its deployment of solar PV power, from a total capacity of some 2.9 GW last year to a target of 34.3 GW by 2035. (Egyptian solar PV capacity had been less than 2 GW in 2020.)
“Over the next decade, Egypt is expected to prioritise large-scale solar deployment as the central driver of its power sector expansion,” highlighted GlobalData power analyst Mohammed Ziauddin. “Beyond domestic demand, solar is also expected to play a broader strategic role in enabling green hydrogen production and supporting cross-border electricity trade initiatives, positioning the country as a regional clean energy hub. Alongside sustained reliance on natural gas and the introduction of nuclear power, this approach is expected to support a diversified and resilient electricity system while strengthening long-term energy security and export potential.”
Egypt had excellence solar resources. To exploit these, the country had adopted a series of legislative, policy and regulatory frameworks to encourage the development of solar PV plants. For example, the Renewable Energy Law, and the Electricity Law, had opened the country’s market to independent power producers. Incentives had been brought in, including lower taxes and customs duties, and access to land provided. Projects were further supported by long-term power purchase agreements and sovereign guarantees. And investors could opt for build-own-operate models for their projects. All these initiatives have greatly boosted investor confidence.
These laws, policies and incentives also applied to wind energy projects. The country had strong wind resources in the Gulf of Suez and Red Sea, and, last year, had a total wind power capacity of about 3 GW. The aim was to increase this to some 15.1 GW by 2035. The country was expected to achieve a total renewable energy capacity of 49.7 GW by that year.
Baseload capacity and flexible generation would continue to be provided by natural gas. Gas-fired generating capacity would remain stable at 45 GW to 50 GW throughout this period. This would be augmented by a further diversification of Egypt’s energy mix – nuclear power. When the El Dabaa nuclear power plant came into full operation, it was expected to add a further 4.4 GW to the grid, also by 2035.
Edited by Reuters
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