Egypt is endeavoring to augment the proportion of renewable energy within its electricity mix to 42% by the year 2035. The nation is actively expanding its capacity through the implementation of large-scale solar and wind energy initiatives. Against this backdrop, renewable power capacity in the country is expected to reach 31.6GW in 2035, registering a compound annual growth rate (CAGR) of 20.4% during 2024-35, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Egypt Power Market Outlook to 2035, Update 2025 – Market Trends, Regulations, and Competitive Landscape,” reveals that annual renewable power generation in Egypt is expected to increase at a CAGR of 19.4% during 2024-35 to reach 88.9TWh.
With its advantageous conditions to harness solar and wind power, Egypt recognizes renewable energy as a pivotal factor for its economic growth. The country possesses considerable wind energy potential, particularly in the Gulf of Suez area, where stable wind speeds average 8-10 meters per second at a height of 100 meters. Furthermore, Egypt enjoys between 2,800 and 3,200 hours of sunshine annually, with daily sunshine ranging from 9-11 hours from north to south.
Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, comments: “Egypt's primary opportunity resides in the exponential growth of electricity consumption, which correlates directly with the increasing population size. This trend presents a significant investment opportunity for companies specializing in power generation equipment.”
The adoption of renewable energy could enhance Egypt's energy security while preserving foreign exchange income through continued gas exports. Additionally, it has the potential to reduce GHG emissions and mitigate environmental impacts.
Saibasan concludes: “Electricity consumption is increasing across all sectors, including residential, industrial, and commercial, in Egypt. Growing demand is driving the need for new power generation projects and grid upgrades. Egypt has one of the fastest-growing populations in the region, with over 107.8 million people as of 2024. Urbanization is increasing, with new housing developments and smart cities like the New Administrative Capital requiring large-scale electricity infrastructure. The country is focusing on renewables to meet increasing demand.”
