Today : Dec 22, 2025
Economy
22 December 2025

Egypt Launches Ambitious 30 Year Electricity Overhaul

Officials unveil a sweeping strategy to modernize Egypt's power sector, improve efficiency, and attract investment, with the first phase set to begin in 2026.

In a move that could reshape Egypt’s energy landscape for decades to come, Minister of Petroleum and Mineral Resources Karim Badawy has unveiled a sweeping 30-year strategy for the country’s electricity sector. This announcement, made on December 20, 2025, comes at a time when Egypt is seeking to balance its ambitious economic goals with the need for sustainable and reliable power—an effort that has drawn both optimism and scrutiny from industry insiders and international observers alike.

According to Al-Masry Al-Youm, Minister Badawy emphasized that the new electricity strategy is built on a foundation of scientific rigor and practical experience, drawing on studies and lessons that date back to 1984. The plan, which will be rolled out in phases beginning in 2026, includes an 8-year implementation roadmap designed to integrate generation and distribution systems across the country. "The strategy aims to enhance the electricity sector with a focus on the rights of consumers and addresses challenges faced by the sector," Badawy stated during a televised interview, underscoring the government’s commitment to both economic development and consumer protection.

Behind the scenes, the strategy’s development involved extensive consultations with a broad array of stakeholders. The Egyptian Electricity Holding Company played a central role, working alongside other relevant entities to ensure the plan’s technical and financial feasibility. According to the Egyptian Gazette, the strategy was shaped by input from experts, investors, and regulatory bodies, reflecting a rare degree of consensus in a sector often marked by competing interests.

One of the most notable aspects of the new strategy is its dual focus: not only does it aim to increase generation capacity and modernize outdated infrastructure, but it also seeks to reduce technical losses that have long plagued the sector. "The strategy includes measures to improve the efficiency of the electricity sector and to reduce technical losses," Badawy explained, adding that these improvements are essential for ensuring that Egypt’s growing population and economy have access to affordable and reliable power.

But the electricity sector overhaul is not occurring in a vacuum. On December 21, 2025, the Egyptian judiciary and regulatory authorities convened a high-level meeting in Abu Khasib, led by Judge Ayman Abu Haniya, to discuss the development and restructuring of the electricity sector in that region. Representatives from the Electricity Holding Company, the Ministry of Electricity, and other stakeholders gathered to address persistent challenges, from technical bottlenecks to operational inefficiencies. According to Al-Ahram, participants at the meeting reviewed the newly announced 30-year strategy and its 8-year execution plan, with a particular focus on improving distribution networks, reducing energy losses, and safeguarding consumer rights.

"Coordination among all parties is crucial to achieving the objectives of the electricity sector strategy," Judge Abu Haniya remarked, highlighting the need for a unified approach as Egypt embarks on this ambitious modernization effort. The meeting in Abu Khasib is just one example of the government’s broader push to involve local authorities and technical experts in the reform process—a move that many see as vital for overcoming the sector’s entrenched problems.

Minister Badawy’s vision extends beyond the technical nuts and bolts of electricity generation and distribution. In his remarks, he pointed to the government’s broader goal of leveraging Egypt’s mineral wealth to drive industrialization and economic growth. "The ambition of the state is not limited to extracting raw materials only, but extends to establishing mining industries that achieve real added value, whether for the industrial sector or by providing hard currency for the Egyptian economy," Badawy said, as reported by Al-Masry Al-Youm. This holistic approach is designed to ensure that the benefits of sector reform are felt not just by large companies or state entities, but by ordinary Egyptians as well.

To support this vision, Badawy announced the upcoming launch of a digital investment portal for the mining and electricity sectors. Slated to go live in the first quarter of 2026, the portal will provide investors with a comprehensive map of Egypt’s mining and energy opportunities, streamlining the process of obtaining licenses and identifying potential projects. "We are working on launching a digital portal to present investment opportunities in the mining sector, and it will include a comprehensive map of mining in Egypt, making it easier for investors to identify available opportunities," Badawy said. This digital transformation is expected to sharply reduce bureaucratic delays, with the government aiming to issue licenses to qualified investors within weeks—a stark contrast to the months or even years required in other countries.

Yet, challenges remain. In a parallel discussion, the parliamentary Energy and Mineral Resources Committee, chaired by Judge Abu Haniya, examined the legal and operational frameworks for sector reform. The committee’s deliberations underscored the importance of maintaining flexibility in long-term agreements, particularly given the scale of investment required and the rapidly evolving nature of the global energy market. As Al-Ahram reported, participants stressed that overly rigid regulations could stifle investment and slow progress, especially in strategic areas like copper and other critical minerals.

Egypt’s approach to sector reform is informed by both domestic constraints and international examples. Minister of Energy and Mineral Resources Saleh Kharabsheh, referencing the experience of neighboring Saudi Arabia, noted that large-scale exploration and development projects can require hundreds of millions of dollars in investment—resources that are not always readily available in Egypt’s current fiscal climate. "Jordan does not currently have the financial capabilities to fund comprehensive exploration programs that require investments of hundreds of millions of dollars," Kharabsheh said, drawing a parallel with the challenges faced by Egypt and other countries in the region.

Despite these hurdles, the government remains optimistic. The new strategy’s phased approach, beginning in 2026, is designed to allow for incremental improvements and course corrections as needed. The first phase will focus on shoring up existing infrastructure and addressing the most pressing technical and operational issues, paving the way for broader reforms in subsequent years.

For many Egyptians, the stakes could hardly be higher. Reliable electricity is not just a matter of convenience—it is a prerequisite for economic growth, job creation, and social stability. As the government embarks on this ambitious overhaul, all eyes will be on how effectively it can translate bold plans into tangible improvements on the ground.

With a comprehensive strategy, stakeholder engagement, and a clear focus on efficiency and consumer rights, Egypt’s electricity sector stands at the threshold of a new era—one that promises both opportunity and challenge in equal measure.