Egypt Commits to Green Energy With Major Solar and Wind Projects

Cairo is redrawing the map of its energy future with a USD 1.6 billion (EGP 79.36 billion) handshake sealed with Norwegian developer Scatec to build a 1 gigawatt (GW) solar plant and a wind energy project, beginning an ambitious push toward shedding its reliance on natural gas and embracing the promise of renewables. The twin agreements of a USD 600 million (EGP 29.76 billion), 1-gigawatt solar plant dubbed “Obelisk” and a USD 1 billion (EGP 49.6 billion), 900-megawatt wind project in the Gulf of Suez signal a decisive shift in Egypt’s energy policy as the country grapples with declining natural gas output and mounting power shortages.  Egypt’s energy mix has long leaned heavily on natural gas, with renewables, primarily solar, wind, and hydropower, accounting for just 11.5 percent of electricity generation as of last year. However, a 16 percent drop in gas output in 2024, dropping to 4.87 billion cubic feet per day from 6.7 billion in the 2021–22 fiscal year, alongside mounting power shortages, has sharpened the urgency of a pivot toward more sustainable and cleaner sources. Backed by international financing and long-term power purchase commitments, the projects are…

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