Zohr gas field

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Egypt's energy consumption by sources

This article describes the energy and electricity production, consumption, and import in Egypt.

Electricity

Electricity generation in Egypt in terawatt-hours

The electricity sector in Egypt has evolved from full state control to a diversified energy mix, incorporating natural gas, renewables, and nuclear power, with increasing private sector involvement and regional interconnection. While fossil fuels still dominate, generating 88% of Egypt's electricity in 2023, hydropower contributes 7%, and wind and solar account for 5%, a rise from 1% in 2015 but still below the global average of 13% and Africa's 6%.[1]

Egypt remains Africa's largest producer of gas-fired electricity, accounting for 45% of the continent's total in 2022.[1] Despite its reliance on fossil fuels, Egypt's per capita carbon emissions remain below the global average.[1]

Egypt's electricity demand has more than doubled over the past two decades, driven by rapid population growth and industrial expansion. This surge has primarily been met by natural gas, which made up 84% of Egypt's electricity mix in 2023.[1] To reduce its dependence on fossil fuels, Egypt has set a target of 42% renewable electricity by 2030.[1] Egypt is also expanding its nuclear energy sector, with construction of the El Dabaa Nuclear Power Plant underway through a partnership with Russia's Rosatom.[2]

Electricity access in Egypt reached 100% by 2016, ensuring universal coverage.[3]

Energy in Egypt[4]
Population Primary energy
(TWh)		 Production
(TWh)		 Export
(TWh)		 Electricity
(TWh)		 CO2-emission
(Mt)
200472.646627527188141
200775.47782957153111169
200881.518221,018180116174
200983.008371,026174123175
201286.42138188
Change 2004-0914.3%27%36%145%40%25%
Mtoe = 11.63 TWh, Prim. energy includes energy losses

Petroleum

Crude oil

Oil refining in Alexandria

Egypt has the sixth-largest proved oil reserves in Africa. Over half of these reserves are offshore reserves. Although Egypt is not a member of OPEC, it is a member of the Organization of Arab Petroleum Exporting Countries.[5]

As of 2005, Egypt's proven oil reserves were estimated at 3.7 billion bbl (590 million m3), of which 2.9 billion bbl (460 million m3) was crude oil and 0.8 billion bbl (130 million m3) were natural gas liquids.[5] Oil production in 2005 was 696,000 barrels per day (110,700 m3/d), (down from 922,000 barrels per day (146,600 m3/d) in 1996), of which crude oil accounted for 554,000 barrels per day (88,100 m3/d).[5]

The National oil company is the Egyptian General Petroleum Corporation, which oversees upstream exploration, production, and partnerships with international energy companies including Eni, BP, and APA Corporation.

Egypt is estimated to hold 12,446 million barrels (1,980 million cubic metres) initial recoverable liquid reserves. After decades of production, it is estimated that the country has approximately 1,888.9 million bbl (300 million m3) recoverable oil remaining, as of January 2011. These figures indicate that 83% of Egypt's recoverable oil reserves have been depleted.[6][7] However, subsequent discoveries, enhanced recovery techniques, and reassessments of mature fields have modestly improved reserve estimates and slowed depletion rates. Based on current reserve and production levels, Egypt retains roughly 9 years of proven oil reserves at present consumption rates, excluding future discoveries and unproven resources.[8]

Recent government and industry reports indicate renewed exploration success. In 2025, EGPC announced AI-assisted discoveries in the Western Desert that added approximately 62.4 million barrels of oil equivalent in new reserves. The company also reported additional recoverable reserves and increased output from mature fields using advanced drilling and reservoir technologies.[9]

Joint ventures between EGPC and Eni subsidiaries increased combined petroleum liquids production above 110,000 bpd in 2025 through developments in Sinai and the Western Desert.[10]

Shale oil

The Safaga-Quseir area of the Eastern Desert is estimated to have reserves equivalent about 4.5 million barrels (720×10^3 m3) of in-place shale oil and the Abu Tartour area of the Western Desert is estimated to have about 1.2 million barrels (190×10^3 m3) of in-place shale oil. The Middle Jurassic Khatatba Formation is widespread across the northern Western Desert, particularly in the Abu Gharadig and Shoushan basins, with thicknesses. It is highly rich in organic matter, with Total Organic Carbon (TOC) values commonly averaging around 4%, but ranging from 1 to over 21% (locally up to 32.5% in some shales/coal-rich interval). The organic matter is dominated by a mixture of algal Type II (oil-prone) and Type III (gas-prone) kerogens, indicating potential for both liquid and gaseous hydrocarbons. The formation is generally mature and within the peak oil generation window 0.76%-1.08%Ro, though it reaches the wet gas window in deeper parts of the basin. ranging from 1,000 to 2,000 feet (approx. 300–600 meters).[11][12]

Apache Corporation, using substantial assets acquired in 2010 from BP after the Deepwater Horizon disaster, is the major operator in the Western Desert,[13] often in joint ventures with Egyptian General Petroleum Corporation (EGPC) such as Khalda Petroleum Company and Qarun Petroleum Company. In 1996 Apache merged with Phoenix Resources, which had made the Qarun discovery in 1994, and took over operations of the Qarun Concession in Egypt.[14]

Apache has developed about 18% of the 10 million acres it controls, in 2012 running a score of rigs; drilling about 200 development and injection wells; and about 50 exploration wells with a success rate of about 55%. Plans for 2013 included an investment of about $1 billion in development and exploration.[15] On 29 August 2013 Apache announced sale of a 1/3 share of its Egyptian assets to Sinopec for $3.1 billion effective 1 January 2014; Apache would continue to be the operator.[16]

Oil shale

Oil shale resources in Egypt were first identified in the 1940s during phosphate mining operations in the Safaga–Quseir area along the Red Sea coast in the Eastern Desert. Since then, geological surveys and research studies have confirmed that Egypt possesses significant unconventional hydrocarbon resources, including oil shale deposits in the Eastern Desert, Western Desert, Nile Valley, and Sinai Peninsula.[17]

The principal oil shale deposits in Egypt are located in the Safaga–Quseir region of the Eastern Desert, Abu Tartour in the Western Desert, Abu Zenima in western Sinai, and several formations associated with the Duwi and Dakhla geological formations. The oil shale in the Red Sea area is considered particularly promising because of its relatively high organic content and favorable kerogen composition.[18]

Modern geological assessments indicate that the Quseir–Safaga deposits contain some of the richest oil shale resources in Egypt. Recent studies estimate reserves in the region at roughly 9 billion tons of oil shale with potentially recoverable shale oil resources equivalent to approximately 4.5 billion barrels of extractable crude oil. Organic carbon content in some horizons reaches more than 20%, making these deposits among the most attractive unconventional hydrocarbon resources in the country.[19]

Additional historical estimates for Egypt's total shale oil in place range between 16 and 17 billion barrels distributed across several regions, including Quseir-Safaga (4.5 billion barrels), Abu Tartour (1.2 billion barrels), Zog El Behar (2.5 billion barrels), Gabal Duwi (4.8 billion barrels), Abu Sheyala (1 billion barrels), and West Youns (2 billion barrels). However, these figures refer largely to geological resources rather than economically recoverable reserves.[20]

The Abu Tartour area in the Western Desert remains important because oil shale occurs alongside Egypt's large phosphate deposits. Oil shale extraction there has long been considered a possible byproduct of phosphate mining operations. Abu Tartour itself is a major mining and transport hub connected to the Red Sea through the Safaga Mining Port and associated railway infrastructure.[20]

Despite the large geological resource base, Egypt has not yet developed commercial-scale oil shale production. Most deposits remain technically immature and require advanced extraction technologies such as retorting, underground mining, or unconventional hydraulic fracturing methods. Geological studies show that much of Egypt's oil shale remains thermally immature, meaning the organic matter has not naturally generated large quantities of liquid hydrocarbons yet.[18]

In recent years, Egypt has increasingly studied unconventional hydrocarbon resources as part of a broader energy diversification strategy. A 2025 review of Egypt's unconventional hydrocarbon sector identified oil shale, shale gas, fractured basement reservoirs, and tight carbonate formations as potential future contributors to domestic energy security.[21]

Egypt has also explored unconventional oil development techniques in the Western Desert. International companies and the Egyptian General Petroleum Corporation have investigated shale and tight-oil formations such as the Abu Roash "F" formation in the Badr field using horizontal drilling and hydraulic fracturing technologies similar to those used in North American shale plays.[22]

However, large-scale oil shale development in Egypt continues to face substantial challenges such as High extraction and processing costs compared with conventional oil and natural gas, significant water and energy requirements for shale processing, environmental concerns related to mining, waste disposal, and emissions, competition from cheaper renewable energy sources such as solar and wind, and Egypt's growing emphasis on offshore natural gas production, especially after major Mediterranean gas discoveries such as the Zohr field.[23]

As of 2026, oil shale in Egypt is still regarded primarily as a long-term strategic energy resource rather than an actively exploited commercial fuel source. Current government energy policy remains more heavily focused on natural gas production, renewable energy expansion, petrochemical development, and energy infrastructure modernization.[17]

Natural gas

A map of natural gas fields in Egypt

Egypt has long pursued the expansion of its natural gas industry, leveraging its significant reserves to meet both domestic demand and international export obligations. By 2005, Egypt's proven natural gas reserves were estimated at 66 trillion cubic feet, ranking third in Africa.[24] Production continued to grow, reaching 2 trillion cubic feet by 2013, with domestic consumption accounting for nearly 1.9 trillion cubic feet.[25]

The Arab Gas Pipeline was developed to facilitate exports to Jordan, Syria, and Lebanon, with a planned total length of 1,200 km, offering the potential to extend gas deliveries to Europe.[26] Egypt developed its liquefied natural gas (LNG) infrastructure, with the Damietta and Idku LNG plants operated by Egyptian LNG and SEGAS LNG, making it a key supplier to international markets.[27]

In the 2000s, foreign investment played a crucial role in the expansion of Egypt's gas industry. BP, Eni, and Gas Natural Fenosa developed major LNG export facilities, but rising domestic consumption led to reduced exports, idling much of Egypt's LNG capacity.[28] By 2014, Egypt shifted its energy strategy to prioritize domestic demand, which significantly curtailed gas exports. As part of efforts to address supply shortages, Egypt signed an agreement with Israel to import 7 billion cubic meters annually from the Leviathan field over 15 years, with gas transported via an underwater pipeline.[29]

In March 2015, BP announced a $12 billion investment to develop offshore gas fields in Egypt's West Nile Delta, a project expected to contribute one-quarter of Egypt's total gas output.[28] BP planned to extract and process gas onshore, with production beginning in 2017. The investment included the Atoll field, which commenced production in 2018 and delivered approximately 300 million standard cubic feet per day (mmscfd) to Egypt's national grid. BP also expanded operations in the North Damietta concession, where production from the Qattameya discovery began in 2020.[30]

The discovery of the Zohr gas field in 2015 marked a major milestone in Egypt's energy sector. Located 190 km north of Port Said in the Shorouk Block, Zohr was discovered by the Italian oil giant Eni, holding an estimated 30 trillion cubic feet of natural gas across 100 square kilometers.[31] Development of Zohr progressed at record speed, with production beginning in December 2017, making it one of the fastest deepwater gas field developments in history. By August 2019, Zohr's output reached 2.7 billion cubic feet per day, significantly boosting Egypt's energy independence.[32]

Despite these successes, Egypt's gas sector encountered challenges in the 2020s, as technical issues at Zohr led to production declines, impacting domestic supply. To mitigate the shortfall, Egypt secured agreements with Cyprus to import gas from the Cronos and Aphrodite fields, routing it to liquefaction plants in Idku and Damietta for re-export to Europe.[33]

In February 2025, Egypt signed a $3 billion LNG deal with Shell and TotalEnergies for 60 cargoes of LNG, securing critical energy supplies for both domestic consumption and export markets.[34] Meanwhile, Egypt has embarked on efforts to revitalize Zohr's production, with plans to drill new wells and boost output by 220 million cubic feet per day. A significant purchase of LNG was reported to be imminent in June 2025, with analysts noting the implications for Egypt's reliance on imports as opposed to its own LNG production.[35]

In January 2026, Israel and Egypt signed a multibillion-dollar expansion of their existing natural gas agreements, aimed at strengthening regional energy cooperation and securing supply lines to the Mediterranean.[36] The agreement facilitates a significant increase in gas flow from Israel's Leviathan and Tamar offshore fields to Egyptian liquefaction plants in Idku and Damietta.[37] This expansion is specifically designed to boost natural gas exports to European markets as part of a broader strategy to reduce Europe's reliance on Russian energy.[38]

In April 2026, Eni announced a major offshore gas and condensate discovery after drilling the Denise W‑1 exploration well in the Temsah ‌Concession in the Eastern Mediterranean containing an estimated 2 trillion cubic feet (Tcf) of gas and approximately 130 million barrels of condensates, reinforcing Egypt's role as a regional energy hub. The find follows a 20-year extension of the Temsah Concession, signed in July 2025.[39][40][41]

The well is located less than 10 km from existing infrastructure, facilitating rapid, low-cost "fast-track" development. It aims to boost Egypt's domestic reserves, with potential to supply roughly 8% to 10% of Egypt's total natural gas needs when fully operational. The discovery is operated by Petrobel (a joint venture between Eni and Egyptian General Petroleum Corporation), with BP holding a 50% stake.[39][40][41]

Egypt's long-term strategy continues to focus on maximizing natural gas exports while ensuring stable domestic supply, with ongoing exploration efforts and new investments aimed at reinforcing its position as a regional energy hub.

Current total production of natural gas in Egypt

As of July 2024, the total production of natural gas in Egypt was stated to be 5.7 billion cubic feet per day.[42]

Nuclear power

Research Reactor (ETRR-2) in Inshas, Egypt

Egypt has considered the development of civilian nuclear energy since the 1950s as part of a long-term strategy to diversify electricity generation and reduce dependence on fossil fuels. Early proposals for nuclear power plants emerged in 1964 with plans for a 150 MWe reactor, followed in 1974 by a proposal for a 600 MWe plant. In 1976, Egypt established the Nuclear Power Plants Authority (NPPA) to oversee the development of nuclear electricity generation, and in 1983 the El Dabaa site on the Mediterranean coast in Matrouh Governorate was officially selected for Egypt's first nuclear power station.[43]

Egypt's nuclear ambitions slowed significantly after the 1986 Chernobyl disaster, leading to the suspension of many planned projects. Nevertheless, the country maintained its nuclear research infrastructure, including the operation of research reactors at the Inshas Nuclear Research Center.[44][45]

In 2006, Egypt formally revived its civilian nuclear energy program and announced plans to construct a large nuclear power station at El Dabaa. Initial estimates placed the project cost at approximately US$25 billion (2015-2017), although later expansions and technological upgrades increased projected costs substantially to US$30 billion (2023-2025). In March 2008, Egypt and Russia signed a framework agreement on the peaceful uses of nuclear energy, laying the foundation for long-term cooperation in the nuclear sector.[43][44][45]

In June 2009, the Nuclear Power Plants Authority signed an eight-year contract with the Australian engineering firm WorleyParsons to provide technical consulting and project support for the El Dabaa nuclear project. However, political instability following the Egyptian Revolution of 2011 temporarily halted implementation. During this period, land disputes and local protests also delayed construction activity at the El Dabaa site.[45]

On 7 November 2013, Interim President Adly Mansour announced the official restart of Egypt's nuclear energy program and reaffirmed plans to construct the El Dabaa Nuclear Power Plant. The Egyptian armed forces subsequently secured the project site and restored state control over the allocated land in Marsa Matrouh Governorate.[46]

A major breakthrough occurred in November 2015 when Egypt and Rosatom signed intergovernmental agreements for the construction of the El Dabaa Nuclear Power Plant. The agreements included reactor construction, nuclear fuel supply, operational support, personnel training, and a Russian state loan covering a large portion of project financing.[47][48][49][50]

The El Dabaa Nuclear Power Plant is now the centerpiece of Egypt's civilian nuclear energy strategy and the largest nuclear construction project in Africa and the Middle East. The plant is located approximately 135 kilometers west of Alexandria on Egypt's Mediterranean coast and is designed to contain four Russian VVER-1200 Generation III+ reactors with a combined installed capacity of 4.8 GW.[51]

Construction officially began in July 2022 following years of preparatory work, licensing procedures, and infrastructure development. Despite delays caused by the COVID-19 pandemic and supply-chain disruptions linked to the Russia-Ukraine war, construction accelerated significantly during 2023–2025.[52] By late 2025, Egyptian and Russian officials reported overall project completion exceeding 38%, with major progress achieved in reactor foundations, turbine buildings, cooling systems, and supporting infrastructure.[53]

According to current schedules announced by Egyptian authorities and Rosatom, the first reactor unit is expected to begin operations in the second half of 2028, while the remaining units are planned to enter service sequentially between 2029 and 2030. Once fully operational, the station is expected to generate approximately 37 TWh of electricity annuall, provide reliable low-carbon electricity for an estimated 20–25 million people, and cover 10% of Egypt's total electricity demand.[54]

The El Dabaa project also has broader economic and industrial objectives. Egypt aims to localize portions of the nuclear supply chain, increase domestic manufacturing participation, and train a new generation of Egyptian nuclear engineers and technicians. Over 30,000 of Egyptian workers and engineers are currently involved in the project, while specialized nuclear training programs have expanded in cooperation with Russian institutions as of early 2026. The project significantly increases local participation, targeting 20–35% Egyptian content across its four units.[51]

In parallel with the development of El Dabaa, Egypt has begun exploring next-generation nuclear technologies, particularly small modular reactors (SMRs). In 2026, Egyptian officials and Rosatom representatives confirmed discussions regarding technical and economic studies for possible SMR deployment in Egypt.[55]

Small modular reactors represent a newer class of nuclear technology characterized by smaller generating units — typically under 300 MW — that can be factory-manufactured and assembled modularly at project sites. Unlike traditional gigawatt-scale nuclear stations, SMRs allow gradual expansion of generation capacity with lower upfront capital requirements and potentially shorter construction times.[55]

Renewable energy

Hydropower

The power plant of the Aswan High Dam, with the dam in the background

The majority of Egypt's electricity supply is generated from thermal and hydropower stations.[56] The five main hydroelectric generating stations operating in Egypt are the Aswan Low Dam, the Esna Dam, the Aswan High Dam, the Naga Hamady Barrages, and the Asyut Barrage hydropower plant which was inaugurated and added as a fifth station in 2018.[57][58]

Almost all hydroelectric generation in Egypt comes from the Aswan High Dam. The Aswan High Dam has a theoretical generating capacity of 2.1GW through twelve 175 MW turbines; however, the dam is rarely able to operate at full design capacity due to low water levels. An ongoing refurbishment program is being enacted to not only increase the generating capacity of the dam to 2.4GW, but also extend the operational life of the turbines by about 40-50 years.[56][59][60]

As part of this modernization effort, Siemens Energy and Egypt's Hydro Plants Production Company began upgrading transformers and power systems at the High Dam, Aswan I, and Aswan II hydropower complexes. The upgrades are expected to add roughly 300 MW of additional capacity to the national grid and improve efficiency and grid stability. These efforts are expected to improve operational efficiency and provide an estimated $269 million in annual fuel savings.[60][61]

According to the Egyptian Electricity Holding Company's 2023/2024 annual report, Egypt's hydroelectric plants generated approximately 15.1 TWh of electricity during the fiscal year, with the Aswan High Dam accounting for the majority of total hydroelectric generation. Combined installed hydropower capacity from the High Dam, Aswan I, Aswan II, Esna, Nagaa Hammadi, and Asyut stations now exceeds 2.8 GW.[62]

Egypt's total electricity generation has increased substantially over the past decade due to rapid population growth, industrial expansion, and urbanization. National electricity generation reached approximately 218.5 TWh in 2024, compared with about 157 TWh in 2011. Installed generation capacity rose to more than 63 GW in 2024.[63]

Although hydropower once represented a major share of Egypt's electricity production, its contribution has steadily declined because virtually all economically viable Nile hydropower sites have already been developed while electricity demand has continued rising rapidly. Hydropower contributed roughly 12–13% of installed electricity capacity in the late 2000s, but by 2024 hydroelectricity accounted for only around 7% of Egypt's total electricity generation.[64]

Most new generating capacity added in Egypt since the mid-2010s has come from natural gas combined-cycle plants, large-scale solar parks such as the Benban Solar Park, and wind farms in the Gulf of Suez region. Egypt's current energy strategy aims for renewables — including solar, wind, and hydropower — to supply 42% of electricity generation by 2030 and 65% by 2040.

One factor influencing Egypt's future hydropower outlook is the ongoing operation of the Grand Ethiopian Renaissance Dam on the Blue Nile in Ethiopia. Egyptian officials and analysts continue to monitor potential impacts on Nile water flow and downstream hydropower generation at Aswan, particularly during drought periods. Although no catastrophic reduction in electricity generation has occurred so far, long-term hydrological uncertainties remain important for Egyptian water and energy planning.

The Attaqa Mountain Pumped Storage Power Plant is a proposed 2.4 GW pumped-storage hydroelectric project located on Attaqa Mountain approximately 15 km west of Suez City at the northern edge of the Red Sea mountain range near Ain Sokhna. Also known as the Mount Attaqa or Gebel Attaqa Pumped Storage Project, it is designed to become the first large-scale pumped-storage hydropower facility in Egypt and one of the largest projects of its type in the Middle East and Africa.[65]

The project is being developed by the Hydro Power Projects Executive Authority (HPPEA) under Egypt's Ministry of Electricity and Renewable Energy as part of the country's broader strategy to diversify energy sources, stabilize the national grid, and support the rapid expansion of renewable energy generation. The project is intended primarily as a large-scale electricity storage system rather than a conventional hydroelectric dam. It will store surplus electricity generated during periods of low demand — especially from solar and wind farms — by pumping water from a lower reservoir to a higher artificial reservoir located on Attaqa Mountain. During peak electricity demand, the stored water will be released downhill through turbines to generate electricity and support grid stability.[65]

The facility is planned to have a total installed generating capacity of 2,400 MW using six reversible 400 MW pump-turbine units housed in an underground powerhouse. The system will utilize two reservoirs — an upper and lower basin — each with approximately 7.3 million cubic meters of active water storage capacity. Water will travel between the reservoirs through six high-pressure penstocks under a maximum hydraulic head of approximately 600 meters. The total project area is estimated at roughly 168,000 square meters, and the overall investment cost remains estimated at approximately US$2.7 billion, although inflation, currency fluctuations, and rising construction costs may increase the final figure substantially.[65]

Initial feasibility studies for a smaller 2.1 GW version of the project were completed in 1998 by Swedish engineering consultancy SWECO with support from the Swedish International Development Cooperation Agency. The Egyptian Electricity Authority and HPPEA approved the studies in June 1998, but implementation remained delayed for many years due to financing and infrastructure challenges.[65]

Momentum returned in March 2015 when Egypt signed a memorandum of understanding with Sinohydro, a subsidiary of PowerChina, to build and help finance the project. Sinohydro later became the engineering, procurement, and construction contractor for the planned facility. In 2017, a consortium consisting of French engineering company Artelia and Swedish consultancy AFRY (formerly AF Consult) was appointed as owner's engineer. Their responsibilities included project management, engineering review, construction supervision, quality control, and commissioning support.[65]

By 2019, the Export-Import Bank of China had reportedly agreed to provide approximately US$2.6 billion in financing for the project. During the same period, Egypt's Ministry of Electricity and Renewable Energy negotiated additional land allocations required for reservoirs, tunnels, and associated infrastructure. Early site preparation work was carried out by Egyptian contractors, including access roads to the mountain plateau, drilling works, and water infrastructure. However, the full-scale construction phase never commenced as originally scheduled.[65]

The project was initially expected to enter operation around 2024, but financing difficulties and changing economic conditions significantly delayed implementation. By 2024–2025, Egyptian government officials confirmed that the project would be reoffered to international investors after Sinohydro failed to finalize the necessary financing arrangements. According to reports published in 2025, Egypt reopened discussions with multiple international companies from India, China, and Europe regarding possible participation in the project. Government officials indicated that the state declined requests to provide sovereign participation in financing, preferring instead to seek alternative investment structures and partnerships.[65]

The renewed interest in the Attaqa project reflects Egypt's growing need for grid-scale energy storage. Although Egypt currently possesses a significant electricity generation surplus — estimated at approximately 15 GW above peak demand — the country is rapidly expanding renewable energy capacity, especially solar and wind generation. Pumped-storage facilities such as Attaqa are increasingly viewed as strategically important for balancing intermittent renewable energy production and maintaining grid reliability.[65]

In parallel with the Attaqa project, Egypt has also completed feasibility studies for two additional pumped-storage hydropower projects in Upper Egypt near Qena and Luxor. Combined generating capacity for these projects is estimated at approximately 2 GW with total projected investments of roughly US$2.5 billion.[65]

The only remaining major undeveloped hydroelectric concept in Egypt is the Qattara Depression project. The proposal, discussed for decades, envisioned channeling Mediterranean seawater into the depression to create an artificial inland sea and generate hydroelectricity from the elevation difference between sea level and the depression floor.[66]

Depending on the engineering design, estimates for potential generating capacity historically ranged from approximately 670 MW to nearly 6.8 GW. However, despite repeated technical studies since the twentieth century, the project has never moved beyond the conceptual stage because of extremely high capital costs, technical challenges, environmental risks, and uncertain economic returns.[66]

In 2016, the Egyptian government formed a specialized ministerial committee under Cabinet Decree No. 3433 to evaluate alternative development scenarios for the Qattara Depression. After extensive studies, the committee rejected the large-scale seawater flooding proposal in May 2026 and concluded that several major development scenarios were economically and environmentally unfeasible.[66]

The committee identified substantial environmental risks associated with filling the depression using Mediterranean seawater. These risks include saltwater intrusion into groundwater aquifers, increased soil salinity, damage to agricultural lands, and threats to freshwater wells used by local communities. The studies also warned of potentially severe impacts on the ecosystems of the Siwa Oasis, including its wetlands, salt lakes, sulfur springs, sand dunes, biodiversity, and wildlife habitats.[66]

Government assessments additionally noted that the Qattara region overlaps with dozens of oil and gas development and exploration blocks in Egypt's Western Desert. Flooding the depression would require relocation of pipelines and infrastructure, complicate petroleum extraction activities, and potentially reduce access to valuable hydrocarbon and mineral resources. The state also concluded that electricity generated from the project would likely be significantly more expensive than electricity produced from modern solar, wind, and natural gas facilities.[66]

As a result, Egypt's current renewable energy expansion strategy has shifted decisively toward solar and wind power rather than new large-scale hydropower developments. The government now considers the Qattara Depression primarily from an environmental and regional development perspective rather than as a realistic near-term electricity megaproject.[66]

Solar

Egypt has a high solar availability as a result of its hot desert climate. Photovoltaic systems are used in remote areas for water pumping, desalination, rural clinics, telecommunications, rural village electrification, etc.[67] The proposed large-scale solar power project Desertec also involves Egypt.

In some areas, the country receives over 4,000 hours of sunshine per year, which is among the highest quantities registered in the world. Due to the sharp population growth and a series of blackouts during the summer caused by a supply shortage, Egyptian demand for solar energy is increasing.

In 2019, Egypt completed one of the biggest solar installations in the world, Benban Solar Park, which generates 1.8 GW to power 1 million homes.[68][69][70]

In 2021, Egypt signed contracts worth $700 million with the Kom Ombo Solar Energy Complex which would create 10,000 jobs. The contracts include 32 solar energy projects.[71]

In 2024, Egypt embarked on a major renewable energy initiative by announcing the construction of two solar power stations with a total investment of 1 billion Egyptian pounds ($20.60 million), funded by a European Union grant. The projects, which include a 10-megawatt station at the Assiut Oil Refining Company and a 6.5-megawatt station at the Egyptian General Petroleum Corporation (EGPC), are integral to Egypt's strategy to achieve 42% of its electricity generation from renewable sources by 2030. This accelerated target reflects Egypt's advantageous geographic conditions, characterized by high solar irradiation and vast desert areas, positioning it as a potential renewable energy hub in North Africa and the Middle East.[72]

Wind

Wind farm at Zaafarana

Egypt possesses one of the strongest onshore wind corridors in the world, particularly along the Gulf of Suez and the Red Sea coast, where high and stable wind speeds averging up to 10.5 m/s provide exceptional conditions for low-cost electricity generation. Over the past decade, the country has transformed wind energy from a limited renewable source into a central pillar of its national energy strategy, with the aim of reducing dependence on fossil fuels, cutting carbon emissions, and positioning itself as a regional hub for clean energy and green hydrogen.[73][74][75]

The expansion of Egypt's wind energy sector accelerated significantly after 2017, when installed wind capacity stood at approximately 755 MW. Since then, the government has launched a comprehensive strategy to diversify the electricity mix and increase the contribution of renewable energy to 42% of total electricity generation by 2030.[76][77]

By the end of 2021, Egypt had installed approximately 1,640 MW of wind energy capacity, including major projects in Zafarana, Gabal El-Zeit, Ras Ghareb, and the Gulf of Suez region. In 2022, installed capacity increased to around 1,702 MW, making Egypt the third-largest wind power market in Africa after South Africa (3,442 MW) and Morocco (1,788 MW). New installations reached 237 MW in 2021, while no major additional capacity entered operation during 2022.[78]

During this period, several landmark projects reshaped Egypt's renewable energy landscape. The 262.5 MW Ras Ghareb wind farm became one of the country's most successful private-sector renewable energy projects, followed by the 252 MW West Bakr wind farm. These projects demonstrated the viability of large-scale private investment in Egypt's electricity market and laid the foundation for a much larger expansion phase.[79]

From 2023 onward, Egypt entered a new era of mega-scale wind developments driven by regional and international investment alliances involving Egyptian, Saudi, Emirati, European, Japanese, Norwegian, and Chinese companies. The country began transforming the Gulf of Suez and Red Sea coastline into one of the world's largest concentrations of onshore wind farms.[80]

A major milestone was achieved in April 2025 with the launch of the 500 MW phase of the Red Sea Wind Energy project near Ras Ghareb, which later reached full commercial operation at 650 MW in July 2025, becoming the largest operational wind farm in Africa and the Middle East. Developed by a consortium including ENGIE, Orascom Construction, Toyota Tsusho Corporation, and Eurus Energy, the project consists of 104 giant wind turbines and is expected to supply electricity to more than one million homes while reducing carbon emissions by approximately 1.5 million tons annually.[81][82]

The African wind energy market also recorded strong growth in 2025. South Africa led annual expansion by adding 509 MW to reach a total installed capacity of 4,037 MW. Morocco followed with 261 MW, increasing its total to 2,629 MW, while Egypt added 242 MW during the year, bringing its installed wind capacity to approximately 3,097 MW. Although Egypt ranked third in total installed capacity by the end of 2025, the country is expected to regain a leading position in the near term, with nearly 1.3 GW of additional wind capacity already under construction.[83]

By 2025, Egypt's total installed wind energy capacity exceeded 3,000 MW, reflecting one of the fastest renewable energy expansions in the Middle East and Africa. At the same time, the government intensified efforts to strengthen the national grid, transmission lines, transformer stations, and control centers to absorb the growing renewable generation capacity and ensure electricity stability.[84]

Among the largest projects currently under development is ACWA Power's massive 2,000 MW wind farm south of Hurghada, with investments estimated at approximately $2.3 billion. The project is expected to include nearly 250 large-scale turbines and reduce carbon emissions by more than 3.5 million tons annually, while supporting Egypt's long-term plans for green hydrogen production and electricity exports.[85]

ACWA Power is also developing the 1,100 MW Suez Wind Energy project in Ras Ghareb, currently one of the largest wind projects under construction in Egypt. The project includes 138 wind turbines with capacities approaching 8 MW each and heights of nearly 210 meters, making it one of the largest onshore wind developments in Africa and the Middle East. Chinese company Envision Energy is manufacturing the turbines, while PowerChina is leading engineering and construction works in cooperation with a Saudi–Egyptian–European investment alliance led by ACWA Power and Hassan Allam Utilities.[86]

In Ras Shukeir, another major consortium involving Orascom Construction, France's ENGIE, and Aeolus Energy—affiliated with Toyota Tsusho—is developing a 900 MW wind project under a 25-year Build-Own-Operate framework agreement with the Egyptian Electricity Transmission Company. Construction is expected to begin in 2026, with initial operations targeted for late 2027 and full commercial operation by mid-2028. The project builds on the consortium's previous success in projects such as Red Sea Wind Energy and Ras Ghareb.[87]

Parallel to this development, Norwegian company Scatec is advancing the 900 MW "Shadwan" wind project in Ras Shukeir through its subsidiary Shadwan Wind Power. The project remains in the wind measurement, studies, and financial close phase, but highlights the extraordinary capacity of the Gulf of Suez region to host multiple giga-scale wind developments simultaneously.[88]

The UAE-based Alcazar Energy has also emerged as a major player in Egypt's wind sector through projects totaling 1,500 MW. These include a 500 MW wind farm in Zafarana and a 1,000 MW project south of Hurghada implemented in two phases. Egyptian Minister of Electricity and Renewable Energy Mahmoud Esmat recently met with Daniel Calderon, co-founder and managing partner of Alcazar Energy, to review implementation progress, accelerate construction schedules, and ensure timely connection to the unified national grid. The discussions emphasized the government's commitment to fast-tracking renewable energy deployment as part of Egypt's broader energy transition strategy.[89]

Another important entrant is AMEA Power of the UAE, which is implementing the 500 MW "Amunet 2" wind project in Ras Shukeir following the success of the $700 million 500 MW "Amunet 1" project in Ras Ghareb. These projects are particularly significant because they integrate renewable generation with battery energy storage systems, reflecting global trends toward hybrid renewable infrastructure capable of improving grid stability and balancing intermittent renewable production.[90]

Meanwhile, the Masdar–Infinity consortium is rapidly advancing a 200 MW wind project in Ras Ghareb with engineering and construction works led by PowerChina Huadong and $153 million financing support from the European Bank for Reconstruction and Development (EBRD), Japan International Cooperation Agency (JICA), Proparco and Green Climate Fund (GCF), and other international institutions. Although smaller than some mega-projects, it demonstrates Egypt's increasing ability to move renewable projects rapidly from financing agreements to actual construction with operations targeted for 2027. Once fully operational, the wind farm will generate enough electricity to power over 300,000 homes and cut almost 400,000 tonnes of CO2 annually.[91]

Beyond the Red Sea coast, Egypt is also expanding wind development into Upper Egypt. One of the most ambitious proposed projects is the 3 GW West Sohag wind development, planned by a consortium including Orascom Construction, ENGIE, and Toyota Tsusho. Spanning approximately 852 square kilometers, the project is expected to supply clean electricity to nearly two million homes while reducing carbon emissions by roughly 6.5 million tons annually and creating up to 7,000 direct and indirect jobs created during construction and operation. The project reflects growing confidence in Egypt's transmission infrastructure and the ability of inland regions to support large-scale renewable development.[92]

Egypt is on the verge of a major breakthrough in renewable energy manufacturing as it moves to establish its first-ever wind turbine production facility. The ambitious project, led by Chinese industrial giant SANY Group, is set to rise within the Suez Canal Economic Zone with investments exceeding $300 million. The initiative represents a strategic shift in Egypt’s energy ambitions—from importing critical equipment to becoming a regional manufacturing and export powerhouse.[93][94]

Discussions surrounding the factory gained momentum in early 2026 following a visit by Minister of Electricity and Renewable Energy Dr. Mahmoud Esmat to China. Meetings with SANY executives focused on bringing advanced wind turbine manufacturing technology to Egypt and exploring broader opportunities for industrial cooperation. By January, plans had evolved into detailed talks covering technology transfer, partnership structures, and the establishment of Egypt’s first wind turbine manufacturing hub. Officials also explored the possibility of developing a future facility dedicated to solar energy components, signaling a broader vision for renewable energy manufacturing.[94]

Government officials have emphasized that the project aligns with national efforts to increase local content in renewable energy projects, with targets reaching as high as 60% over the coming years. The factory is expected to play a critical role in achieving those goals. Momentum continued to build in May when Egyptian and SANY representatives reviewed implementation plans and discussed wind energy projects totaling 2,000 megawatts. For the first time, the connection between domestic manufacturing and electricity generation became clear, as both sides examined how locally produced turbines could be deployed in upcoming wind farms across the country.[94]

The project has since entered a more advanced stage, with reports indicating that SANY plans to invest more than $300 million in the facility. Unlike assembly-focused operations, the factory is expected to manufacture complete wind turbines along with many of their core components, creating a comprehensive industrial base capable of serving both domestic and international markets. Its initial production is expected to support a new 1,000-megawatt wind power project in the Gulf of Suez, one of Egypt’s most promising renewable energy regions. During the early phases, certain key components will continue to be imported from China until local production lines are fully established. Over time, however, the share of locally manufactured components is expected to rise significantly.[94]

The economic implications are substantial. Egypt imported more than $235 million worth of wind turbines and related components in 2024 alone. Producing these technologies locally could reduce import costs, ease pressure on foreign currency reserves, create thousands of jobs, and stimulate domestic supply chains in engineering, metallurgy, and advanced manufacturing. Wind turbine production is among the most technologically demanding industries in the renewable energy sector. It requires expertise in manufacturing massive steel towers, precision-engineered blades, generators, control systems, and a wide range of sophisticated electrical and mechanical components. Establishing such capabilities within Egypt would mark a significant leap forward for the country's industrial sector.[94]

Beyond meeting local demand, Egypt has its sights set on becoming an export hub for renewable energy equipment. With African and Middle Eastern markets rapidly expanding their investments in clean energy, the country hopes to leverage its strategic location and extensive network of trade agreements to supply neighboring regions.[94]

Collectively, these projects reveal the scale of Egypt's ongoing transformation in the electricity sector. The announced and under-construction wind projects alone now exceed 10 GW, approaching the country's total wind power target of 13.7 GW for 2030.[95]

See also

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Citations