Egypt is endeavouring to augment the proportion of renewable energy within its electricity mix to 42% by the year 2035. The nation is actively expanding its capacity through the implementation of large-scale solar and wind energy initiatives. Against this backdrop, renewable power capacity in the country is expected to reach 31.6GW in 2035, registering a compound annual growth rate (CAGR) of 20.4% during 2024-2035. The annual renewable power generation in Egypt is expected to increase at a CAGR of 19.4% during 2024-2035 to reach 88.9TWh.
With its advantageous conditions to harness solar and wind power, Egypt recognises renewable energy as a pivotal factor for its economic growth. The country possesses considerable wind energy potential, particularly in the Gulf of Suez area, where stable wind speeds average 8m-10m per second at a height of 100m. Egypt enjoys between 2,800 and 3,200 hours of sunshine annually, with daily sunshine ranging from 9-11 hours from north to south.
Go deeper with GlobalData
Egypt’s primary opportunity resides in the exponential growth of electricity consumption, which correlates directly with the increasing population size. This trend presents a significant investment opportunity for companies specialising in power generation equipment.
The adoption of renewable energy could enhance Egypt’s energy security while preserving foreign exchange income through continued gas exports. Additionally, it has the potential to reduce greenhouse gas emissions and mitigate environmental impacts.
Electricity consumption is increasing across all sectors, including residential, industrial, and commercial, in Egypt. Growing demand is driving the need for new power generation projects and grid upgrades. Egypt has one of the fastest-growing populations in the region, with over 107.8 million people as of 2024. Urbanisation is increasing, with new housing developments and smart cities such as the New Administrative Capital requiring large-scale electricity infrastructure. The country is focusing on renewables to meet increasing demand.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData