Egypt is accelerating the transformation of its power sector, with solar PV expected to become the country’s fastest growing source of electricity generation over the next decade.
According to GlobalData, Egypt’s solar PV capacity is forecast to increase from approximately 2.9GW in 2025 to around 34.3GW by 2035. The growth marks a significant shift for a market historically dominated by natural gas fired generation, particularly large combined cycle power plants.
The findings were published in the company’s latest report titled “Egypt Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035”.
Egypt’s cumulative renewable power capacity is expected to reach nearly 49.7GW by 2035, with solar PV accounting for the majority of new additions. The expansion reflects the country’s strong focus on utility scale renewable deployment, supported by high solar irradiation levels and an expanding pipeline of large projects.
The growth of the solar sector has been supported by a broad policy and investment framework introduced over recent years. Regulatory reforms, including the Renewable Energy Law and Electricity Law, opened the market to independent power producers and created a more attractive investment environment.
Government incentives such as tax reductions, lower customs duties, and improved land access have strengthened project economics. Long term power purchase agreements, sovereign guarantees, and wider adoption of build own operate models have also increased investor confidence and accelerated project development.
Egypt has further strengthened renewable deployment through initiatives such as the Nexus of Water, Food and Energy platform, which has mobilised international financing for large scale projects. Fast track approval mechanisms, including the Golden License, have reduced regulatory timelines and improved project execution.
Battery energy storage is also becoming increasingly integrated into new solar developments, helping improve grid stability and manage peak electricity demand more effectively.
Mohammed Ziauddin said solar PV is emerging as the dominant growth driver in Egypt’s power sector due to strong resource availability, improving project economics, and sustained policy support.
He noted that the scalability and cost competitiveness of solar technology make it well positioned to meet rising electricity demand while complementary technologies continue to support grid reliability.
Alongside solar, Egypt’s wind energy sector is also expected to record steady growth. Wind power capacity is projected to increase from approximately 3GW in 2025 to around 15.1GW by 2035, supported by strong wind resources in the Gulf of Suez and Red Sea regions.
Despite the rapid growth of renewables, thermal power will continue to play a central role in Egypt’s electricity system. Natural gas fired generation capacity is expected to remain broadly stable at between 45GW and 50GW through 2035, maintaining its role in providing baseload and flexible power generation.
Nuclear energy is also expected to become part of Egypt’s future energy mix through the El Dabaa Nuclear Power Plant, which is projected to contribute around 4.4GW of capacity by 2035.
Ziauddin said Egypt’s long term strategy positions solar energy not only as a solution for domestic electricity demand, but also as a key enabler for green hydrogen production and cross border electricity trade.
He added that the combination of large scale solar deployment, continued natural gas generation, and the introduction of nuclear power is expected to support a more diversified and resilient electricity system while strengthening Egypt’s long term energy security and export potential.
Author: Bryan Groenendaal
April 18, 2026
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