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The Arabinform Journal > Blog > World > Egypt’s Strategic Turn to Clean Energy and Economic Transformation
World

Egypt’s Strategic Turn to Clean Energy and Economic Transformation

Egypt is advancing a comprehensive clean energy strategy, combining renewable and nuclear projects to modernize its economy, enhance energy independence, and boost exports. The Al-Dabaa nuclear plant and expanding solar and wind sectors form the core of this transition.

Arabinform
Last updated: April 5, 2025 1:24 pm
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Arabinform
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Egypt’s Strategic Turn to Clean Energy and Economic Transformation
Egypt’s Strategic Turn to Clean Energy and Economic Transformation
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As Egypt charts a new developmental trajectory, it is increasingly positioning itself as a regional leader in clean and renewable energy. This strategic pivot aligns with broader goals of modernizing the economy, strengthening energy security, and enhancing the country’s resilience amid shifting geopolitical and environmental dynamics.

According to a study by Alexander Filonik, a researcher at the Institute of Oriental Studies of the Russian Academy of Sciences, published in the Eastern Analytics Journal, Egypt’s ambitions are reflected in its multi-vector energy policy, which prioritizes the development of solar, wind, and nuclear power. This initiative goes beyond environmental concerns and is also aimed at supporting industrial growth and energy exports.

A Historical Shift and National Priorities

Egypt’s clean energy transformation is taking shape alongside a broader redefinition of its political and economic identity. With economic capacity growing and infrastructure modernizing, the country has embraced new technologies and formed strategic partnerships to accelerate progress. The modernization of Egypt’s productive forces includes the creation of new industrial sectors and the adoption of advanced scientific solutions that form the basis for long-term policy planning.

In recent years, Egypt has taken significant steps to align itself with international environmental goals, demonstrating readiness to play a larger role in regional energy dynamics. The drive toward energy diversification also aims to reduce dependence on fossil fuels while ensuring energy access in both urban and remote areas.

Solar and Wind Energy: Progress and Infrastructure

A major milestone in Egypt’s clean energy agenda has been the deployment of solar power systems. By early 2024, 255 solar platforms were installed nationwide, generating about 30 GWh annually and saving 270 million Egypt pounds in public funds. These results have exceeded expectations in both scale and efficiency.

The country is also integrating solar solutions into specific sectors such as aviation. In 2023, a 300 kW solar station connected to the Cairo airport grid helped reduce annual CO₂ emissions by 222 tons. Nationally, 141 solar stations totaling 18 MW have been launched under a broader environmental modernization program, developed in collaboration with the UK Institute.

Wind energy infrastructure has advanced as well, with large-scale projects like a 580 MW facility on the Red Sea and a 250 MW installation in the Gulf of Suez. Egypt’s strategic agreement with the UAE for a 10 GW wind complex in Sokhna—among the largest in the world—further highlights the country’s ambitions.

Diversification and Export Potential

Egypt has also made clean energy exports a key pillar of its strategy. Through forums such as the East Mediterranean Gas Forum and COP-27, the country is actively building partnerships for regional energy integration. A major initiative involves a planned 3 GW subsea power cable connecting Egypt with Greece and Italy, aimed at delivering green electricity to European markets.

Egyptian analysts estimate that these exports could reduce European carbon emissions by 7.5 million tons annually and lower dependency on fossil fuels. They also foresee a reduced need for land-intensive energy production in Europe and a greater buffer against future geopolitical energy shocks. However, Egypt’s export capacity is likely to remain limited and supplementary, depending on domestic energy needs and infrastructure development.

The Nuclear Component: Al-Dabaa Power Plant

A cornerstone of Egypt’s long-term energy strategy is the Al-Dabaa nuclear power plant, developed with Russian cooperation. The facility will house four third-generation reactors with a total capacity of 4.8 GW. Seen as both an energy project and a geopolitical instrument, Al-Dabaa is expected to create up to 35,000 jobs and attract $4.7 billion in investment.

Al-Dabaa meets the highest international safety standards and is designed to minimize environmental impact. Its projected 92% capacity factor far surpasses traditional gas and renewable sources, ensuring high output at a relatively low cost—approximately $60 million per 1.2 GW compared to $400 million for gas-fired equivalents.

The plant is also intended to supply electricity to new national development zones, such as the New Delta and Wadi Qattara, and to facilitate energy exports to neighboring countries like Libya, expanding Egypt’s strategic energy footprint.

Regional Integration and Institutional Development

The Egyptian government has also pursued policy integration with European and Mediterranean partners, including agreements with Greece and Italy on energy infrastructure. These steps are designed to reinforce Egypt’s position as a clean energy transit and production hub.

Domestically, the energy shift supports industrial modernization and national employment. The localization of high-tech production, training of skilled personnel, and enhancement of scientific capacity are all viewed as integral to Egypt’s energy independence and sustainable growth.

Despite facing logistical and economic challenges, the country’s clean energy policy is increasingly regarded as a credible path to resilience. Egypt’s annual GDP growth, averaging around 4%, places it among emerging economies that have maintained stability despite external shocks.

Strategic Outlook and Challenges

The future of Egypt’s clean energy program rests on its ability to maintain investment momentum and institutional support. Political continuity, particularly following the re-election of President Abdel Fattah el-Sisi in 2024, has reinforced national development priorities and minimized the risks of policy reversal.

While constraints remain—especially in scaling up infrastructure and securing financing—Egypt has succeeded in institutionalizing clean energy as a central element of its national strategy. By combining environmental goals with industrial policy, the government aims to reduce reliance on oil and gas, mitigate carbon emissions, and contribute to global efforts to combat climate change.

If current trends continue, Egypt is likely to solidify its role as a regional energy supplier and a key participant in the global green transition. This strategy not only supports internal growth and technological advancement but also enhances Egypt’s geopolitical positioning in the broader Middle East and North Africa region.

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