EU Backs Egypt Grid Modernization Project
Egypt has secured up to €690 million ($800 million) in financing from the European Union to modernize and expand its electricity transmission grid, supporting the country's growing renewable energy ambitions.
The funding package includes a €600 million loan from EIB Global, the development arm of the European Investment Bank (EIB), along with up to €90 million ($104,4 million) in grants from the European Commission.
The project will be led by the Egyptian Electricity Transmission Company (EETC) and is designed to enable the integration of 22 GW of renewable energy capacity into Egypt's national grid by 2030. According to the European Commission, the planned upgrades could support electricity supply for approximately 10 million households.
The initiative is among the first projects launched under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), which aims to strengthen renewable energy collaboration between the EU and Mediterranean partner countries.
The investment comes as Egypt continues to attract international support for its energy transition. In 2024, the EU announced a broader €7.4 billion ($8.5 billion) support package for Egypt, while the European Bank for Reconstruction and Development committed €200 million ($232 million) in 2025 to support the country's green economy plans.
For the transformer and transmission sector, the project is expected to create demand for grid infrastructure, substations, transformers, and related technologies required to connect large-scale renewable generation to the national power network.
Source: agbi.com
