Egypt and the European Union (EU) have signed a grant agreement worth €90 million ($107.2 million) that will be managed by the European Investment Bank (EIB) to enhance investments in the electricity grid in Egypt and develop renewable energy capabilities.
A separate €35 million ($41.7 million) grant agreement was signed on Tuesday for Norway’s Scatec to support its green ammonia project in Ain Sokhna.
The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo.
Egyptian Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat said the transition toward sustainable, secure, and efficient energy systems represents one of the main drivers for achieving comprehensive development in Egypt.
Al-Mashat hailed the partnership between Egypt and the EU, as well as their shared commitment to supporting the energy transition, especially in light of the accelerating global changes that make it necessary to strike a balance between economic growth, energy security, and emissions reduction.
She said the Egyptian state has adopted an ambitious vision for the energy sector through 2040, based on expanding renewable energy sources, enhancing energy efficiency, and maximizing the use of diverse resources. This would strengthen Egypt’s position as a regional energy hub in the Eastern Mediterranean and support the achievement of the Sustainable Development Goals.
She also said the ministry plays a central role in coordinating international partnerships and directing investments toward national priorities, especially energy transition, in close cooperation with European institutions such as EIB and European Bank for Reconstruction and Development (EBRD).
She added that the Nexus of Water, Food, and Energy (NWFE) platform serves as a leading national model linking water, food, and energy sectors, having mobilized about $5 billion over three years to deliver 4.2 GW of private-sector renewable energy projects and strengthen Egypt’s role in climate finance and green development.
In a related development, Energean International CEO Nicolas Katcharov told Reuters on Tuesday that Egypt has directed international oil companies to double production by 2030, saying existing contracts must be revised to spur new investment.
Katcharov said the low gas prices that supported earlier development phases had "expired,” making it necessary to update terms to encourage companies to deploy capital and boost production at brownfield sites.
He also said gas flows from Israel to Egypt had risen, with the pipeline now operating at full capacity.
