Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 9.81 gigawatt |
| Market Volume (2030) | 25.25 gigawatt |
| Growth Rate (2025 - 2030) | 20.81% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Egypt Renewable Energy Market Analysis by Mordor Intelligence
The Egypt Renewable Energy Market size in terms of installed base is expected to grow from 9.81 gigawatt in 2025 to 25.25 gigawatt by 2030, at a CAGR of 20.81% during the forecast period (2025-2030).
The Egyptian renewable energy market is expanding because policymakers introduced the national target to source 42% of electricity from renewables by 2030. Continued multilateral finance, abundant solar irradiance of about 2,600 kWh/m² in southern governorates, and world–class 55% wind capacity factors along the Gulf of Suez sustain robust project pipelines. Utility-scale schemes still capture 88% of installed capacity, yet distributed rooftops and captive plants record the fastest expansion. The government’s allocation of 41,700 km² for green-hydrogen-linked solar and wind projects underpins a future export platform for low-carbon fuels.
Key Report Takeaways
- By technology, hydropower led with a 36.5% share of the Egyptian renewable energy market in 2024, while onshore wind is forecast to expand at a 32.5% CAGR through 2030.
- By end-user, utilities held 62.5% of the Egyptian renewable energy market share in 2024, whereas the commercial and industrial segment records the highest projected 26.4% CAGR to 2030.
Egypt Renewable Energy Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Supportive government targets and incentives | +4.2% | National, with concentration in Suez, Aswan, and Benban zones | Medium term (2-4 years) |
| Abundant solar irradiance and high-capacity-factor wind corridors | +3.8% | Gulf of Suez for wind; Western Desert and Upper Egypt for solar | Long term (≥4 years) |
| Multilateral climate-finance inflows (EBRD, IFC, Green Bonds) | +3.5% | National, prioritizing grid-connected utility-scale projects | Short term (≤2 years) |
| Green-hydrogen export MoUs triggering additional capacity | +5.1% | Suez Canal Economic Zone, Ain Sokhna, and Mediterranean ports | Long term (≥4 years) |
| Thermal-plant de-risking frees grid headroom | +2.0% | National, with immediate gains in Cairo, Alexandria, and Delta region | Medium term (2-4 years) |
| Rising corporate PPAs from data-centric and industrial clusters | +2.3% | Greater Cairo, Suez Canal corridor, and Red Sea industrial zones | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Supportive Government Targets & Incentives
The National Low-Carbon Hydrogen Strategy announced in August 2024 estimates a USD 18 billion GDP uplift by 2040 and more than 100,000 new jobs.[1]“National Low-Carbon Hydrogen Strategy,” Egypt Today, egypttoday.com Public-sector capital re-allocation means half of FY 2024/2025 investment spending is earmarked for green projects compared with 15% three years earlier. The “Golden Licence” regime under Investment Law 72/2017 condenses permitting to a single window, accelerating bankable projects that meet export or import-substitution thresholds. Under the NWFE platform, USD 14.5 billion of concessional finance has flowed to renewables since 2020, with USD 3.9 billion channelled to private developers. Feed-in tariffs ranging from 84.8 Pt/kWh for sub-200 kW systems to 102.5 Pt/kWh for 20-50 MW plants ensure predictable revenues.
Abundant Solar Irradiance & High-CF Wind Corridors
Southern Egypt registers solar brightness near 2,600 kWh/m² annually, placing the Egyptian renewable energy market among the world’s most resource-rich solar provinces.[2]“US-Egypt Renewable Resource Assessment,” U.S. Department of Commerce, trade.gov Red Sea wind corridors exceed 7 m/s, delivering 55% to 63% capacity, enabling levelised costs below USD 0.08/kWh for offshore arrays. Benban Solar Park, a 1.5 GW complex over 37 km², showcases utility-scale density and cost discipline. With resource synergies, hybrid solar-wind sites support 24-hour hydrogen electrolyser operation targeting USD 1.7/kg production by 2050. Such natural advantages anchor the long-term competitiveness of the Egyptian renewable energy industry.
Multilateral Climate-Finance Inflows
EBRD financed USD 479.1 million, about 80% of capital, for Scatec's 1.1 GW solar-plus-storage complex, confirming strong appetite for Egypt's de-risked structures. ACWA Power's 1.1 GW Suez wind farm raised USD 704 million of senior debt from a syndicate led by EBRD and AfDB with 20-year tenors that compress tariffs. IFC's EUR 500 million facility to ENGIE aligns 1.7 GW of capacity with an emissions avoidance of 3.9 MtCO₂ annually. Regional green-bond issuance doubled in 2023, with renewables receiving 37% of proceeds and Egypt's largest single destination. Blended-finance structures continue to crowd private capital for the Egyptian renewable energy market.
Green-Hydrogen Export MoUs Triggering Additional Capacity
Seven MoUs signed since mid-2024 in the Suez Canal Economic Zone envisage USD 42 billion of private investment and 9 GW of dedicated solar-wind capacity. A EUR 7 billion France–Egypt accord targets 1 million t/y of green ammonia by 2029 without sovereign finance exposure. ACWA Power and Itochu agreed to off-take 600,000 t/y of carbon-free ammonia, securing revenue certainty that unlocks project debt. Bankable export contracts accelerate capacity build-out, effectively doubling the Egypt renewable energy market timeline within the current decade.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Grid congestion and transmission bottlenecks | -2.8% | Upper Egypt (Aswan, Benban) and Gulf of Suez corridor | Short term (≤2 years) |
| Land-banking delays in designated renewable zones | -1.5% | National, with acute issues in Suez Canal Economic Zone and Western Desert | Medium term (2-4 years) |
| FX depreciation inflates imported equipment costs | -3.2% | National, affecting all import-dependent projects | Short term (≤2 years) |
| Water-scarcity risk for CSP and hybrid-cooling projects | -0.9% | Western Desert and Upper Egypt | Long term (≥4 years) |
| Source: Mordor Intelligence | |||
Grid Congestion & Transmission Bottlenecks
Legacy networks designed for centralised gas turbines strain as renewable penetration edges beyond 3.5 GW, mirroring global queues of 3,000 GW awaiting interconnection.[3]“Grid Integration of Renewables 2024,” International Energy Agency, iea.org Egypt’s wide-area monitoring rollout across 220/500 kV lines lifts visibility but earmarks capital needs approaching USD 600 billion globally by 2030. The 3,000 MW Egypt–Saudi HVDC link scheduled for 2025 provides critical redundancy for variable flows. Planned Libya and Cyprus interconnectors of up to 3,000 MW each could turn Egypt into a regional balancing hub, yet rely on timely domestic grid upgrades. Distribution-level constraints and limited smart-meter penetration still curb the rapid uptake of small-scale generation in the Egyptian renewable energy market.
FX Depreciation Inflates Imported Equipment Costs
The Egyptian pound lost 5.5% in H2 2024, inflating solar module and turbine imports even as reserves climbed to USD 46.4 billion. EliTe Solar’s 5 GW module plant and Elsewedy Electric’s USD 500 million submarine-cable factory illustrate localisation moves that hedge currency swings. IMF support via a USD 5 billion Extended Fund Facility top-up and USD 35 billion UAE investment commitments aim to anchor FX stability. Until hedging tools deepen, volatility will temper near-term capex decisions in the Egyptian renewable energy market.
Segment Analysis
By Technology: Wind Surges as Hydrogen Anchor
Wind posted a 36.5% share of Egypt renewable energy market size in 2024 and is set for a 32.5% CAGR through 2030 as the Gulf of Suez corridor continues to deliver 40%-plus capacity factors.[4]International Renewable Energy Agency, “Renewable Energy Statistics 2024 – Egypt,” IRENA, irena.org Hydropower anchored by the 2.1 GW Aswan High Dam retains the largest single-asset footprint but loses share as environmental and transboundary concerns block new dams. Solar PV and CSP supplied roughly 28% of capacity in 2024 and will add 8 GW by 2030 on the back of USD 0.12 / W bifacial modules.
Developers prioritize wind for hydrogen because 35%-plus utilization is essential to keep electrolyzer costs down, a threshold solar seldom meets. ACWA Power’s 1.1 GW Suez project, equipped with 138 Envision 6 MW turbines, is contracted to a 400 MW electrolyzer that will export green ammonia to Rotterdam. ENGIE’s 650 MW Red Sea Wind farm added two-hour lithium-ion storage to move power to evening peaks, showcasing hybrid revenue stacking. Pumped-storage options advance slowly due to USD 3.8 billion capital needs and seven-year timelines, while CSP adoption stalls under water scarcity and price competition from solar-plus-battery layouts.
Note: Segment shares of all individual segments available upon report purchase
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By End-User: Industrial Buyers Reshape Procurement
Utilities controlled 62.5% of Egypt's renewable energy market share in 2024 through the single-buyer model, yet the commercial and industrial segment is tracking a 26.4% CAGR to 2030. The growth reflects rising grid tariffs and access to sustainability-linked financing that shaves up to 100 basis points off loan coupons when firms procure 30% renewable power.
Egypt Aluminium's 1 GW solar PPA at USD 0.028 / kWh exemplifies cost savings of 18% against grid supply and shows how captive projects bypass procurement delays.[5]Scatec Communications, “1 GW Solar PPA with Egypt Aluminium,” SCATEC, scatec.com Data-center expansion in Greater Cairo adds new behind-the-meter demand. Steel and cement firms eye captive wind farms in the Gulf of Suez, leveraging land leases at USD 0.02 / m² and 40% capacity factors to achieve sub-USD 0.03 / kWh supply. Residential uptake remains low at under 3% of capacity, hampered by eight-to-ten-year payback periods under net-metering tariffs set at 70% of retail prices.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
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Geography Analysis
Upper Egypt’s high irradiance supports massive solar parks such as Benban and Masdar’s approved 1 GW site, collectively exceeding USD 900 million in investment. Red Sea coastal plains host signature wind assets, including ACWA Power’s 1.1 GW Suez project and the planned 10 GW West Suhag farm, where 55-63% capacity factors underpin competitive tariffs. The Suez Canal Economic Zone is emerging as an integrated green-hydrogen export cluster, drawing USD 42 billion of pledged capital for 3 million t/y ammonia output destined for Europe.
Cross-border links reinforce Egypt’s role as a regional energy hub. A 3,000 MW HVDC interconnection with Saudi Arabia goes live in 2025, complementing planned 2,000–3,000 MW upgrades with Libya and a mooted submarine cable to Greece. Daily reserve margins near 15 GW provide operational headroom to absorb variable renewable inflows while exporting surplus to neighbours. Western Desert expanses offer low-conflict land for emerging mega-sites; 41,700 km² is already earmarked for 115 GW of solar-wind capacity.
Mediterranean locations such as El Dabaa register top-tier wind speeds, pushing levelised costs under USD 0.079/kWh for offshore turbines. The Nile Valley remains hydro-centric, yet future water allocation uncertainties accelerate diversification. Industrial cities like Damietta benefit from proximity to Elsewedy Electric’s new cable factory, anchoring supply-chain depth and supporting rapid grid expansion.
Competitive Landscape
International developers dominate the current project pipeline, yet partner extensively with domestic firms to navigate permitting and land access. ACWA Power progressed from financial close to construction on a 1.1 GW wind asset backed by USD 704 million of multilateral debt, reaffirming its execution prowess. Scatec secured USD 479 million from EBRD, AfD, B, and BII for a 1.1 GW solar-plus-storage scheme, highlighting battery integration as the next differentiator.
Strategic alliances multiply: BP’s tie-up with Masdar, Hassan Allam, and Infinity Power targets green-hydrogen value chains, leveraging BP’s LNG marketing and Masdar’s solar pipeline. AMEA Power, after commissioning Africa’s largest 500 MW solar project, is adding 600 MWh of storage, illustrating first-mover advantages in hybrid assets. Local manufacturing gains momentum; EliTe Solar’s 5 GW module plant and Elsewedy’s submarine-cable facility cut currency exposure and support domestic content rules.
Regulatory innovations such as the Golden Licence accelerate entrants that deliver export earnings or technology transfer; 29 licences were issued by March 2024. Distributed-generation specialists and smart-grid providers represent emerging disruptors as utilities modernise billing and congestion management. Overall, the Egyptian renewable energy market is moderately concentrated, yet rising localisation and industrial demand are lowering entry barriers for niche players with storage or digital expertise.
Egypt Renewable Energy Industry Leaders
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ACWA Power
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Scatec ASA
-
Infinity Power / Masdar JV
-
Lekela Power
-
Siemens Gamesa / ENGIE consortium
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2025: Scatec reached financial close on the 561 MW first phase of the Obelisk solar-plus-storage complex, raising USD 479.1 million from a DFI consortium.
- June 2025: Scatec inked a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a 900 MW onshore wind project in Ras Shukeir, Egypt. Scatec's dedicated project company, Shadwan Wind Power SAE, will spearhead the project's development.
- February 2025: AMEA Power signed Capacity Purchase Agreements (CPAs) with the Egyptian government to develop Egypt's first standalone battery energy storage stations. The projects, with a total capacity of 1,500MWh, include a 500MWh BESS in Zafarana and a 1,000MWh BESS in Benban.
- December 2024: AMEA Power inaugurated the Abydos solar park in Aswan, boasting a capacity of 500 MW. As one of Africa's largest solar parks, Abydos is projected to produce a substantial 1,500 GWh of clean energy each year.
Egypt Renewable Energy Market Report Scope
Renewable energy is the energy collected from renewable resources such as sunlight, wind, water movement, and geothermal heat that are naturally replenished. For each segment, the market sizing and forecasts were made based on installed capacity (GW). The Egyptian renewable energy market report includes:
By Technology
| Solar Energy (PV and CSP) |
| Wind Energy (Onshore and Offshore) |
| Hydropower (Small, Large, PSH) |
| Bioenergy |
| Geothermal |
| Ocean Energy (Tidal and Wave) |
By End-User
| Utilities |
| Commercial and Industrial |
| Residential |
| By Technology | Solar Energy (PV and CSP) |
| Wind Energy (Onshore and Offshore) | |
| Hydropower (Small, Large, PSH) | |
| Bioenergy | |
| Geothermal | |
| Ocean Energy (Tidal and Wave) | |
| By End-User | Utilities |
| Commercial and Industrial | |
| Residential |
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Key Questions Answered in the Report
What capacity is the Egypt renewable energy market expected to reach by 2030?
The market is projected to grow to 25.25 GW by 2030 on the back of wind energy additions.
Which technology segment is growing the fastest?
Onshore wind, supported by Gulf of Suez wind speeds, is advancing at a 32.5% CAGR through 2030.
Why are corporate PPAs rising in Egypt?
Industrial buyers seek cost savings and sustainability-linked loan discounts, making long-term solar or wind PPAs attractive.
How is currency risk managed in new PPAs?
Developers increasingly index a portion of tariffs to hard currencies or seek sovereign guarantees to hedge pound depreciation.
What are the main transmission challenges?
The 500 kV backbone in Upper Egypt and the Gulf of Suez is near saturation, prompting mandatory storage and new line investments.
Which companies lead large-scale hydrogen-linked projects?
ACWA Power, Masdar, and Infinity Power head consortia that integrate gigawatt-scale renewables with electrolyzers for export.
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