The European Union and Egypt have agreed on a €690 million financing package to modernise the Egyptian electricity network and integrate renewable energy, the European External Action Service announced on 15 June 2026. The package combines a €600 million loan from the European Investment Bank's development arm, EIB Global, with up to €90 million in EU grants. The project, led by the state-owned Egyptian Electricity Transmission Company (EETC), aims to integrate 22 gigawatts of renewable-energy capacity by 2030, enough to supply about 10 million households. It is one of the first concrete operations under the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative (T-MED), a flagship of the Pact for the Mediterranean.
The programme includes construction of substations and transmission lines to connect solar and wind power from the Red Sea and Gulf of Suez regions to the national grid. The investments are expected to reduce transmission losses, improve reliability, and support Egypt's role as a regional energy hub. The EU financing covers 44% of the total cost, with EETC providing the remainder. The EIB-supported phase will run from 2027 to 2030. The government will borrow through the Central Bank of Egypt, while EETC leads implementation.
European Commissioner for the Mediterranean Dubravka Šuica said the project reinforces Egypt's role in regional energy markets and creates business opportunities for local and European companies. EIB Vice-President Gelsomina Vigliotti described it as a concrete example of EU-Egypt partnership unlocking renewable energy and strengthening energy resilience. Egyptian Foreign Minister Badr Abdelatty said the cooperation modernises the electricity network, strengthens energy security, and creates opportunities for sustainable growth.
The project advances the EU-Egypt Strategic and Comprehensive Partnership and contributes to the Global Gateway strategy, which aims to mobilise up to €400 billion in investments worldwide by 2027. T-MED supports clean, secure and affordable energy, industrial competitiveness, and jobs on both sides of the Mediterranean.
Stakeholder impacts - Egyptian Electricity Transmission Company (EETC): gains financing and technical support for grid modernisation, but bears implementation responsibility and co-financing. - Egyptian households and businesses: benefit from improved electricity reliability and access to renewable energy, though no immediate cost impact is specified. - European companies: gain business opportunities in equipment supply and construction for grid infrastructure. - EU taxpayers: provide €90 million in grants, with returns expected through strengthened energy partnership and reduced carbon emissions.
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