Egypt’s Ministry of Electricity and Renewable Energy has increased its budget allocation for purchasing renewable power to EGP 18.15bn ($374.1mn) in FY 2025/26, up from EGP 16.5bn in the previous year, Al Arabiya Business reported, citing a government official. 

The EGP 1.65bn rise reflects both higher capacity additions to the national grid and the impact of currency devaluation following the March 2024 flotation of the pound, which saw the exchange rate jump from EGP 31 to nearly EGP 49 per US dollar. About a quarter of payments to private renewable producers are made in foreign currency.

During FY 2024/25, Egypt’s renewable purchases grew 20% year-on-year (y/y), driven by 1,006 MW of new capacity, including the 500 MW Abidos solar plant owned by UAE-based AMEA Power, which was connected to the grid in November 2024.

The government’s clean energy strategy targets 42% renewable power by 2030 and 65% by 2040, with a focus on private-sector participation, regional interconnections, and export capabilities.

In parallel, Minister of Electricity Mahmoud Esmat met with executives from China Energy International to discuss investment in solar power, technology transfer, and local manufacturing of solar panels and storage batteries. The Chinese company is considering relocating its North and West Africa headquarters to Cairo and launching projects including a 1,000 MW solar park and large-scale battery storage facilities, according to Al Mal.