Egypt is poised to embark on a significant venture in the renewable energy sector, anticipating investments ranging between $15 billion and $20 billion for a project aimed at exporting electricity to Italy. Sabah Mashaly, the Egyptian Deputy Minister of Electricity and Renewable Energy, made this announcement during a conference held by the American Chamber of Commerce in Cairo on Tuesday, April 29, 2025.
The ambitious project will involve exporting green electricity via a submarine cable with a capacity of up to 3 gigawatts. Mashaly emphasized that the Egyptian government has recently completed initial studies that showed promising results. Now, the focus shifts to detailed studies that will further clarify the investment landscape for the project.
In a notable development, the Egyptian Council of Ministers has approved a cooperation agreement between the Egyptian Electricity Transmission Company and the Emirati company K&K. This partnership aims to finalize the studies necessary for the electricity export project, which will see renewable energy sourced from Egypt sent to Italy through a submarine cable.
"The renewable energy sector in Egypt is extremely promising, and we are working diligently to increase the share of renewable energy in our annual production," Mashaly stated, highlighting the government's commitment to enhancing the efficiency of electricity generation.
Since October 2024, Egypt has initiated a strategic plan to reduce its reliance on fuel and gas for electricity production. This shift is part of a broader effort to promote sustainability and efficiency within the energy sector. Mashaly noted that since the implementation of this plan, Egypt has saved approximately 7.7 million Egyptian pounds in subsidized fuel costs. If evaluated at global prices, the savings could reach up to 23 million Egyptian pounds.
This project is not only a step towards a greener energy future but also a significant move in fostering international energy cooperation. By exporting renewable energy to Italy, Egypt is positioning itself as a key player in the global energy market.
The initiative aligns with global trends towards sustainable energy sources, and Egypt's strategic location offers a unique advantage for connecting with European energy markets. As Europe seeks to diversify its energy sources and reduce carbon emissions, Egypt's renewable energy potential is becoming increasingly attractive.
Moreover, the project reflects Egypt's broader goals of enhancing its energy infrastructure and increasing the share of renewable energy in its overall energy mix. The Egyptian government has set ambitious targets for renewable energy generation, aiming to produce 42% of its electricity from renewable sources by 2035.
As the world grapples with climate change and the need for sustainable energy solutions, Egypt's investments in renewable energy projects like the one aimed at exporting electricity to Italy could serve as a model for other nations. The collaboration with the Emirati company K&K is expected to bring in not only financial resources but also technical expertise that can bolster Egypt's renewable energy capabilities.
In conclusion, this project symbolizes a significant leap forward for Egypt in its quest to become a renewable energy hub in the region. With substantial investments on the horizon and a commitment to sustainability, Egypt is set to play a crucial role in the future of global energy.
