Egypt plans to invest approximately $60 billion by the end of this decade to add 23 gigawatts of electricity capacity, with most of it coming from renewable sources, according to statements made by Minister of Investment Hossam El-Khatib during the Development Financing Conference in Saudi Arabia.

El-Khatib explained that between now and 2030, Egypt will add 23 gigawatts of renewable energy, with the exception of 4.8 gigawatts from a nuclear power plant. The total investment in this sector will amount to $60 billion.

He also mentioned that over the next ten years, until 2040, Egypt will need to add 45 gigawatts of electricity, more than 90% of which will come from clean energy sources, in order to keep up with the population growth.

This growth is considered a natural rate without any extraordinary jumps.

El-Khatib noted that Egypt, in cooperation with development finance institutions, has put together a program to lead the transformation of the energy sector by dismantling old, polluting gas-fired plants and replacing them with renewable energy plants. This shift will reduce the country’s gas import bill, according to the minister.

Egypt’s sustainable energy strategy aims to reach 42% of the national grid’s total capacity from renewable sources by 2030.

 This target will be divided into 22% solar energy, 14% wind energy, 4% concentrated solar power, and 2% hydroelectric power.

However, the minister highlighted some challenges facing the country in its renewable energy transition, including the need to invest around $45 billion in the electricity distribution network to accommodate the new clean energy.

He added that wind farms are primarily located along the Red Sea coast, far from the regular distribution network, which will require special connections to integrate them into the grid.