The European Union (EU) is providing €690 million to upgrade Egypt’s electricity transmission network and integrate 22 GW of new renewable energy capacity into the national grid by 2030, according to a statement released by EU.

The agreement includes a €600 million loan from EIB Global, alongside €90 million in grants from the European Commission. It marks the first concrete project under T-Med, the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, which the EU has positioned as the energy flagship of its new Pact for the Mediterranean.

EETC will use the financing to build new substations and high-voltage transmission lines that will transport solar and wind power from the Red Sea and Gulf of Suez areas to the national grid. 

Badr Abdelatty, Minister of Foreign Affairs, International Cooperation and Egyptian Expatriates, said the agreement reflects the strength of Egypt’s partnership with the European Union and their shared commitment to advancing the green transition.

He added that cooperation with the EIB and the EU marks an important step toward modernizing Egypt’s electricity network, strengthening energy security, and creating new opportunities for sustainable growth.

EU funding will cover 44% of the total program cost, while EETC will finance the remaining amount from its own resources, the statement noted.

 The EIB-supported phase is expected to run from 2027 to 2030, with the Egyptian government acting as the borrower through the Central Bank of Egypt.

 The financing package was announced alongside the EU-Egypt Association Council meeting in Luxembourg, the first such meeting since Egypt and the EU signed their Strategic and Comprehensive Partnership in 2024. 

EU High Representative Kaja Kallas said the discussions focused on six strategic priorities: trade, investment, energy, green transition, migration, and people-to-people relations, according to a separate statement.

T-Med is part of the EU’s Global Gateway strategy and serves as the bloc’s energy cooperation arm in the Mediterranean. Global Gateway aims to mobilize up to €300 billion in infrastructure financing worldwide by 2027.

In 2024, the EU pledged a €7.4 billion package of loans, grants, and investments to Egypt through 2027, alongside the Strategic and Comprehensive Partnership. 

The latest grid financing package is the largest concrete clean energy investment announced since that framework was signed. European institutions have continued to play a key role in supporting Egypt’s power grid, with the European Bank for Reconstruction and Development committing €200 million last year to help finance grid upgrades.