To boost Egypt’s GDP growth in the coming years, the government has been touting greater private-sector investment. In June, Prime Minister Mostafa Madbouly said private investment would account for 66% of Egypt’s economy by 2030, up from 60% in fiscal year 2025/2026. During this period, private investment’s contribution to GDP would rise from 77% to 82%. 

Powering that growth will require new energy ventures, with the greatest potential in sustainable energy projects. “Of the $3.4 trillion the world would spend on energy investments this year, $2.2 trillion will go to clean energy and just $1.2 trillion to fossil fuels,” according to the International Energy Agency’s World Energy Investment 2026 report, published in May. 

Currently, the government is working along three tracks to create a sustainable energy ecosystem. “New and renewable energy projects [are] a cornerstone of securing energy supplies and achieving sustainable development,” Madbouly told the media in July. 

Finance is crucial, and Madbouly has instructed the “ministries of electricity and finance, and the Central Bank to maintain close coordination and … monitor project finance on an ongoing basis.” 

Renewables 

Renewable energy sources, particularly wind and solar, are already crucial to the national electricity grid. By 2025, they accounted for 20% of electricity generation. By 2030, that share should rise to 42%, reaching 60% by 2040.  

To attract private sustainable-energy investors, the government introduced feed-in tariffs in 2014. In 2015 and 2016, it dedicated plots of land for solar farms in Benban and Kom Ombo in Upper Egypt. Wind energy projects are located along the Gulf of Suez and the Red Sea. Egypt “is just one of 38 countries in the world with a published National Wind Atlas,” noted a 2025 International Trade Administration (ITA) paper.  

Investors are responding favorably. “As of 2025, 32 Power Purchase Agreements have been signed with private developers to generate 1,465 megawatts (MW) of renewable energy, with additional agreements underway,” said the ITA. “Egypt continues to promote the ‘build, own, operate’ model to attract foreign investment and accelerate deployment.” 

The government is also pushing to localize the manufacturing of renewable energy hardware. In January, Sungrow, a solar power plant developer, announced plans to build a battery storage manufacturing facility in Ain Sokhna’s industrial zone.   

In July, the government said it had granted the all-encompassing Golden License to two battery energy storage production investors, with investments totaling more than $800 million. One will be in Benban, targeting solar energy investors. The other will be in Zafarana on the Red Sea coast, serving wind energy farms. 

Green hydrogen 

In 2024, Egypt launched its Green Hydrogen Strategy to “play a leading role in the supply of hydrogen and its derivatives for the development [of a] low-carbon hydrogen economy,” the strategy document said. “Egypt will [be] targeting up to 8% of the tradable market by 2040 … requiring around $60 billion of investment.” 

Currently, Egypt is in phase one, “pilot projects,” until 2030. In this stage, the government is “laying the foundations for the developing low-carbon hydrogen economy and export market,” the strategy document said. The phase will “provide close support for initial projects and establish a fit-for-purpose governance structure.” 

To date, Egypt has one flagship green hydrogen pilot project under construction in the Suez Canal Economic Zone. In January, Madbouly said the project had begun partial production, adding the green hydrogen produced would be exported mainly to Europe. 

Phase 2 runs from 2030 to 2040, aiming to “secure market position in the growing hydrogen economy, using the lower costs for hydrogen to support the wider decarbonization of Egypt.” 

The final phase will see “full market implementation,” where Egypt will “maintain market position in the low-carbon hydrogen economy [and] use hydrogen across society to support decarbonization and secure Egypt’s low-carbon future in industry and transport.” 

 Nuclear power 

Since the early 1960s, Egypt has sought to operate a nuclear power plant to supply the national power grid. The government installed two reactors in the Sharqia governorate in 1961. Currently, only one is operational, but it is not connected to the national grid.  

In 2015, the government partnered with Russia to build a nuclear power station in El Dabaa along the Mediterranean coast. Upon completion, its four reactors will generate 4,800 megawatts of power. In 2025, all of Egypt’s green energy output totaled 4,500 megawatts. 

 In July, Madbouly announced the placement of the second reactor pressure vessel, “signifying the project’s shift from civil engineering to intensive nuclear equipment assembly and commissioning,” according to local media.    

 During the announcement, Madbouly said, “peaceful nuclear energy is a strategic option that supports the achievement of sustainable development goals by providing a safe and reliable source of electricity, while helping reduce carbon emissions and supporting efforts to combat climate change.” 

 Pursuing green funding 

Financing with favorable payment terms (by green-investor standards) is crucial to transforming economies away from fossil fuels.  

“Green finance, which is typically debt finance, is often cheaper than conventional debt finance, thereby creating a saving on interest expense,” according to ACCA Global, an accounting association. “Another aspect is that the use of green finance can demonstrate that a project is sustainable and environmentally friendly. This can help to improve a corporate image and reputation.” 

The downside: “Green financing involves additional costs as a result of increased reporting requirements,” said ACCA Global. “It will need to be demonstrated that the financed project or initiative will have a positive environmental impact. This may require an independent audit, and even if not, there is likely to be an increased administrative burden.”  

Choosing between green finance and conventional finance is a project-by-project exercise. While the “benefits related to savings and the impact of additional costs should be fairly straightforward for an organization to assess, cost-benefit analysis can be undertaken to see whether the green finance is worthwhile,” ACCA Global noted.  

 Local money 

Egypt offers several financing options for green energy investors. Private- sector players and banks include CIB (the largest listed bank and company on the EGX), Banque Misr (state- owned), and AlexBank.  

The American University in Cairo helps eco- friendly startups in Egypt access finance. Other institutions include Contact Financial Holding, which provides green loans of up to EGP 3 million ($ 59, 59,000) for solar installations, electric vehicles, and locally rated energy- efficient appliances.  

Meanwhile, the Ministry of Environment (MoE) serves as a middleman “to align the choice of financing mechanisms with a business’ s strategic plan and specific financing needs.”  

Its services include “mapping public information on equity- financing entities, including angel investor groups, venture capital funds, and early private equity funds with a history or an interest in investing in green sectors,” as noted in the MoE’ s climate blurb.  

International funding for local green investors is available through the EUR 220 million Green Economy Financing Facility, supported by the European Bank for Reconstruction and Development (EBRD), the EU, and the Green Climate Fund, primarily for SMEs. The International Finance Corp. (IFC) and the European Investment Bank also provide green financing for eligible local companies. 

In 2024, Egypt launched Africa’ s first voluntary carbon market platform, where high polluters can buy “credit” points from low polluters. That raises costs for the former and lowers them for eco- companies.  

For green funding to be effective, “governments [need] to establish transition strategies with multi- year emissions targets; carbon tax and pricing policies consistent with these targets; appropriate taxonomies with disclosure requirements for financial and non- financial companies; and measures to address the data and capacity gaps … to make these classifications and disclosures meaningful,” noted an IFC paper. “Only with such strategies … can the financial industry begin to advance the long- term reallocation of capital needed for the transition to a low- carbon economy.”