Egypt Signs 5.6 GW Renewable Energy PPAs To Accelerate Clean Power Transition

Egypt has taken a strong step toward a cleaner energy future by signing several power purchase agreements (PPAs) for projects totaling 5.6 gigawatts (GW). The agreements, finalized in late March 2026, mark one of the country’s biggest efforts to reduce dependence on fossil fuels and expand renewable energy capacity. The plan includes a mix of large-scale wind and solar projects, along with battery storage systems to ensure a stable electricity supply.

One of the key projects under this initiative is a 900-megawatt (MW) wind farm at Ras Shukeir, located along the Red Sea coast. This project will be developed by a consortium comprising Orascom Construction, France-based Engie, and Japan’s Toyota Tsusho. The Red Sea region offers high wind speeds, making it an ideal site for efficient and large-scale wind power generation.

The agreements also focus heavily on solar energy development. A major 2-gigawatt (GW) solar park will be built near Naga Hammadi in Upper Egypt. This project will include a 2,000-megawatt-hour (MWh) battery energy storage system (BESS). The storage system will play an important role by storing excess solar power generated during the day and supplying it during evening peak demand hours. This will help improve grid stability and ensure a reliable power supply.

In addition, two more solar projects with a combined capacity of 720 MW are planned in the El-Oweinat region in the Western Desert. These projects will further strengthen Egypt’s renewable energy portfolio and support its growing electricity demand.

The agreements were signed by Egypt’s Ministry of Electricity and Renewable Energy with private sector developers under a Build-Own-Operate (BOO) model. Under this structure, private companies will invest in and operate the projects, while the Egyptian Electricity Transmission Company (EETC) will purchase the electricity through long-term contracts, typically lasting around 25 years.

These developments are part of Egypt’s Integrated Sustainable Energy Strategy, which aims to increase the share of renewable energy in the country’s electricity mix to 42% by 2030 and 65% by 2040. The projects are also expected to generate employment opportunities, attract foreign investments, and support economic growth.

With strong natural resources and increasing use of advanced technologies like battery storage, Egypt is positioning itself as a key player in the regional clean energy transition while ensuring a more sustainable and reliable power system.