Egypt is moving toward local-currency financing for major renewable energy projects as the country seeks to reduce dependence on foreign currencies and accelerate its clean energy transition.
The Ministry of Electricity and Renewable Energy announced plans to finance two solar projects and a battery storage facility in Egyptian pounds, marking a shift from the foreign-currency financing structures traditionally used for large-scale energy developments.
The planned projects include a 2,000-megawatt solar power plant combined with a 2,000 megawatt-hour battery energy storage system at Nagaa Hammadi, as well as a separate 320-megawatt solar facility in the Oasis region.
Both installations are expected to connect to Egypt’s national electricity grid by 2027. The move follows a presidential directive aimed at limiting exposure to foreign currency risks as pressure on the Egyptian pound continues and external debt remains high.
The projects were discussed during a meeting between Electricity Minister Mahmoud Esmat and Bahaa El Ghannam, head of Future of Egypt, a government authority responsible for major development initiatives.
Beyond supplying electricity to the national grid, the renewable energy projects will support agricultural and agro-industrial developments managed by Future of Egypt. Officials highlighted renewable energy as a key part of the country’s long-term economic development strategy.
The initiative comes as Egypt expands renewable energy investment across multiple sectors. Earlier, the government announced a program to install up to 1,000 megawatts of rooftop solar capacity across around 7,000 factories to help reduce industrial energy costs and ease pressure on the electricity network.
Egypt has set ambitious renewable energy targets, aiming for renewables to represent 45% of the national electricity mix by 2035, compared with around 20% currently. Solar power capacity is also expected to grow significantly as the country strengthens its clean energy infrastructure.
By adopting local-currency financing, Egypt hopes to make renewable energy projects more resilient while supporting its broader goals of energy security, industrial growth, and reduced reliance on imported financing.
