Cairo, Egypt — As Egypt grapples with frequent power blackouts, the government is turning to Gulf investors to boost the country’s electricity supply ahead of the next summer season. Prime Minister Mostafa Madbouly announced on September 19 that the government aims to eliminate power cuts, which have frustrated citizens during a particularly hot summer.
The government attributed the ongoing energy crisis to insufficient natural gas supplies, which make up 84% of the country’s electricity generation. Peak consumption has surged from 37GW to a record 38.5GW, exacerbated by extreme heat and a rising population, which is growing by nearly two million annually. To address this demand, Egypt needs to add 4GW of renewable energy capacity by next year.
One major investor, Dubai-based Amea Power, is planning to contribute significantly to Egypt’s energy transition by adding 2GW of renewable capacity through a mix of wind, solar, and green hydrogen projects. Amea’s chairman, Hussain Al Nowais, expressed confidence in Egypt’s potential for renewable energy, noting the country’s abundant wind and solar resources.
Amea is also working on Egypt’s first battery storage project, with a capacity of 900MW, set to optimize renewable output within 18 months. The urgency for investment comes as climate change intensifies, with record temperatures, including a historic 50.9°C in Aswan.
Additionally, Saudi Arabia’s Acwa Power is preparing to invest $15 billion in Egypt by 2030, focusing on green hydrogen, solar, and wind projects. Acwa’s CEO, Marco Arcelli, emphasized a positive outlook for investment in Egypt, citing the country’s need for energy and its large economy as strong fundamentals for growth.
In a bid to attract foreign investment, Egypt aims to triple foreign direct investment to $30 billion this financial year, offering various incentives amid ongoing austerity measures. With Gulf nations showing increasing interest, officials believe this collaboration will be crucial in stabilizing the country’s energy infrastructure and addressing the ongoing crisis.
