Egypt’s National Strategy for Low-Carbon Hydrogen is expected to boost Egypt’s GDP by $18 billion and create over 100,000 new jobs by 2040, targeting a 5–8% share of the global hydrogen market, according to a report released by the Cabinet highlighting Egypt’s strategy to transition toward clean energy in support of sustainable development.

The report referenced data from the International Renewable Energy Agency, noting that Egypt ranked first in the Arab world in renewable energy generation capacity in 2023, with a total capacity of 6,709 MW.

The report also highlighted Egypt's international recognition for its clean energy transition efforts. Egypt advanced five places in Ernst & Young's Renewable Energy Country Attractiveness Index, ranking 34th in June 2024 compared to 39th in March 2015.

Additionally, Egypt climbed six positions in the World Economic Forum’s Energy Transition Index, ranking 75th in 2024 compared to 81st in 2018.

Fitch Solutions noted that Egypt's energy market is poised for continuous growth, driven by robust renewable energy initiatives and private sector investments.

It also predicted that non-hydro renewable energy sources would become the fastest-growing sector.

The International Energy Agency (IEA) commended Egypt’s integrated sustainable energy strategy, emphasizing the country’s commitment to turning its renewable energy vision into reality.

The report showcased Egypt's efforts to expand its reliance on clean energy, targeting a contribution of 42% of renewable energy to the electricity mix by 2030 and 60% by 2040.

It revealed that Egypt’s total installed renewable energy capacity reached 7,633 MW in 2024 and is projected to reach 10,000 MW by the end of 2025.

 Solar power capacity increased to 2,611 MW in 2024 from 140 MW in 2013/2014, a 19-fold increase. Wind power capacity grew to 2,190 MW in 2024 from 550 MW in 2013/2014—a fourfold increase. Hydropower capacity reached 2,832 MW in 2024 compared to 2,800 MW in 2013/2014, marking a 1.1% increase.

The report also detailed Egypt’s green hydrogen projects, noting the signing of 30 memoranda of understanding to localize green hydrogen production in the Suez Canal Economic Zone.

Of these, 14 MoUs have been activated, with 12 converted into framework agreements.

The anticipated annual production from these agreements is 18 million tons, with investments of $64 billion.

Key renewable energy projects and initiatives were highlighted, including the Benban Solar Park with a total capacity of 1,465 MW, the Gabal El-Zeit wind farm with a capacity of 580 MW, and the Abydos 1 solar power station with a capacity of 500 MW.

The report also addressed the NWFI program, aimed at decommissioning conventional energy plants with a total capacity of 5,000 MW.

 To date, plants with a combined capacity of 1,200 MW have been decommissioned. The program seeks to attract $10 billion in private sector investments to add 10,000 MW of renewable energy capacity by 2028.

As part of this initiative, renewable energy projects totaling 4,200 MW have been agreed upon, with financing worth $3.9 billion secured by the end of 2024.