Egypt's Ministry of Electricity and Renewable Energy has announced plans to expand its cooperation with China Southern Power Grid International (CSGI) to modernize the national electricity grid and integrate renewable energy sources. The goal is to ensure a stable electricity supply and prepare for an expected increase in electricity demand. This move aligns with Egypt's efforts to position itself as a renewable energy hub and attract foreign investment.
China Southern Power Grid International (CSGI) is a subsidiary of China Southern Power Grid, one of China's main state-owned electricity grid firms. CSGI operates in various areas, including electricity transmission and distribution, pumped-storage hydroelectric power generation, and energy control systems. The company has experience in energy integration and is expected to bring expertise to Egypt's grid modernization efforts.
The two sides discussed potential cooperation in energy planning, integrating and maximizing renewable energy use, and proposing smart distribution systems. They also explored solutions to utilize energy storage systems and technology to safeguard energy control and transition from traditional to smart grids. Egypt aims to accelerate its shift to cleaner energy and enhance sustainability in industrial production.
Egypt has set a goal to increase the share of clean energy in its electricity mix to 45 percent by 2028. The country is moving forward with plans to accelerate and diversify electricity generation to support a greener economic transition. Egypt has also been advancing the peaceful use of nuclear energy through the Dabaa nuclear power plant, with the recent installation of the reactor pressure vessel.
Approximately 2,500 megawatts of renewable energy capacity are expected to be added to the national grid in 2026. Egypt's national energy transition plan aims to develop energy storage capacity and transmission networks to improve the efficiency of the electricity system. The plan also includes implementing advanced digital solutions to enhance energy control and grid stability.
Egypt has launched initiatives to diversify electricity sources and support wider solar energy use, including the "Sun of Industry" initiative. The initiative aims to install solar power stations on the rooftops of about 7,000 factories across various governorates for on-site electricity generation. Egypt has also been exploring Chinese investments in renewable energy projects and solar and wind energy components industries.
The cooperation between Egypt and China is expected to help Egypt achieve its renewable energy targets, including a goal of 61.2 percent renewable energy share by 2040. The country's Electricity Minister, Mahmoud Esmat, emphasized the importance of developing and enhancing the national grid to increase its capacity to absorb renewable energy and utilize natural resources such as wind and solar power.
Key points
- Egypt aims to increase the share of clean energy in its electricity mix to 45 percent by 2028.
- Approximately 2,500 megawatts of renewable energy capacity are expected to be added to the national grid in 2026.
- Egypt targets 61.2 percent renewable energy share by 2040.
