Egypt Renewable Energy Market Research Report

Egypt Renewable Energy Market Overview:

The Egypt renewable energy market size reached USD 3,360.9 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 4,900.8 Million by 2033, exhibiting a growth rate (CAGR) of 4.28% during 2025-2033​. The market in Egypt is majorly driven by changing government policies, abundant natural resources, international investments, economic diversification efforts, continual technological advancements, increasing energy demand, climate change concerns, job creation, energy independence, and regional leadership aspirations.

Egypt Renewable Energy Market Trends: 

Government policy and ambitious targets

Egypt is implementing favorable renewable energy targets and policies that are revolutionizing the market. The government is aiming for 42% of electricity to come from renewable sources by 2035, and it is implementing frameworks that are providing incentives such as tax exemptions, expedited permits, and competitive tariff structures. Through the enactment of new energy legislation and giving powers to agencies to manage projects, Egypt is making sure that deployment of renewables is becoming more predictable and structured. This positive policy impetus is generating investors' confidence, with investors increasingly viewing Egypt as a secure market for big projects. Support from the government is also being coordinated with wider national strategies for sustainable development, making sure that renewable energy is being incorporated into the long-term economic vision. This is how the policies and goals are not just fueling capacity growth but also facilitating long-term stability in the industry.

Plenty of natural resources offering tremendous potential

Egypt is leveraging its natural endowments of sunlight, wind corridors, and desert land to build a robust renewable energy foundation. Large areas of desert are being utilized for massive solar schemes, where intense levels of irradiation are offering excellent conditions for photovoltaic generation. In parallel, high and stable wind speeds in regions such as the Gulf of Suez are also being exploited for high-capacity wind farms, producing stable energy output. Vast tracts of idle land are being made available for renewable projects without encroaching on agriculture or urban requirements, making project development easier. These natural benefits are lowering generation prices and making the renewable power more competitive compared to traditional fossil fuels. Using these resources, Egypt is creating a solid foundation that is guaranteeing the long-term sustainability of its power mix. In 2025, Egypt has officially begun the fully operational phase of the 650MW Gulf of Suez Wind Farm II, now said to be the largest active wind power facility in Africa and the Middle East. The developers announced that the last 150MW section was effectively added to Egypt’s national grid in June, finishing the project before its initially planned Q3 2025 deadline.

Sustained electricity growth and energy security issues

Egypt is witnessing a quick growth in electricity demand, driven by urban developments, population growth, and industrial innovation. In order to address the growing demand, Egypt is diversifying its energy mix to maintain a non-reliance on natural gas and oil. The government targets to raise renewables’ contribution to approximately 20% of total electricity supply by 2025/2026. The government also seeks to achieve a total wind and solar capacity of 6,470 megawatts, supported by significant new investments in clean energy systems. Overdependence on fossil fuels is producing risks associated with unstable global prices, low reserves, and supply uncertainty, thus making renewables an even strategic substitute. Power cuts and seasonal outages are also highlighting the importance of a secure energy framework. Egypt is enhancing energy security and providing stable supply to homes, industry, and commerce by increasing solar, wind, and other forms of renewable projects. This change is also shielding the economy from outside disturbances as well as easing the burden on local fossil fuel reserves. Increasing electricity demand is thus serving as a major catalyst that is driving investment in renewable energy as well as deployment projects countrywide.

Egypt Renewable Energy Market Growth Drivers:

Declining costs and improving technology

Renewable energy technologies are getting less expensive, and this is hastening deployment in Egypt. The price of solar panels and wind turbines is constantly reducing, and renewable projects are now more affordable than ever. Advances in design, storage, and grid integration are making renewable energy increasingly efficient and reliable. Improved inverters, sophisticated monitoring systems, and energy storage technologies are reducing the intermittency problems and enabling round-the-clock power supply. These advances in technology are inspiring developers and financiers to invest in projects with more confidence since risks are being minimized. The reduced cost of equipment and project development is also making renewable power competitive with traditional generation, which is propelling large-scale uptake. This trend is building a momentum in which technology and affordability are coming together to wipe out past hurdles, opening the floodgates for both utility-scale developments and decentralized renewable systems for Egypt.

International investments, partnerships, and funding

Egypt is drawing strong international attention and obtaining foreign investments that are driving renewable energy growth. Developments through partnerships with development banks, foreign companies, and regional players are ushering in financing, know-how, and cutting-edge technologies. These partnerships are lowering the risk of projects by splitting the cost and burden while bringing best global practices. Global funding is also offering Egypt access to capital at cheaper rates, enabling big projects like solar parks and wind farms to proceed on a large scale. New prospects in green hydrogen manufacturing and green energy export opportunities are also attracting increased interest from foreign partners. By becoming a regional center for clean energy, Egypt is acquiring a strategic position that is enhancing its economy and energy infrastructure. Foreign engagement is thus serving as a driver that is developing the market for renewable energy at a fast pace.

Regulatory, legal, and institutional changes

Egypt is enhancing its regulatory and legal environment to eliminate obstacles and provide a climate in which renewable projects can flourish. New electricity legislation is explaining rules concerning licensing, production, and grid connection, whereas simplified permitting is lowering delays for developers. Tax incentives and preferential tariffs are also making renewable projects more appealing to private investors. Those institutions that oversee renewable energy projects are being consolidated, ensuring that there is effective coordination and supervision by various stakeholders. The government is also strengthening the transmission network to accommodate increased renewable power and to reduce losses during dispatch. Such reforms are yielding greater confidence for investors, enhancing project bankability, and accelerating implementation timelines. Through ongoing improvement of its institutional and regulatory framework, Egypt is streamlining renewable energy development to become more efficient, transparent, and sustainable, and it is creating long-term confidence within the market.

Egypt Renewable Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on type and end user.

Type Insights:

• Hydro Power
• Wind Power
• Solar Power
• Bioenergy
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes hydro power, wind power, solar power, bioenergy, and others.

End User Insights:

• Industrial
• Residential
• Commercial

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes industrial, residential, and commercial.

Region Insights: 

• Greater Cairo
• Alexandria
• Suez Canal
• Delta
• Others 

The report has also provided a comprehensive analysis of all the major regional markets, which include Greater Cairo, Alexandria, Suez Canal, Delta, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Egypt Renewable Energy Market News:

• September 2025: Egypt's Minister of Investment and Foreign Trade, Hassan El-Khatib, held a meeting with Daniel Calderon, the Founder of Alcazar Energy, to explore opportunities for enhancing collaboration in the renewable energy field and to evaluate the company's forthcoming plans in Egypt. Calderon expressed Alcazar Energy's eagerness to broaden its presence in Egypt by initiating new renewable energy initiatives that support the nation's sustainability and green economic objectives. He noted that collaboration with the Ministry of Investment and Foreign Trade will pave the way for innovative solutions in the energy sector and strengthen Egypt’s shift toward a more sustainable future.
• September 2025: Prime Minister Mostafa Madbouly held a meeting with He Fei, the Managing Director of SunRev Solar, at the government headquarters in the New Administrative Capital to talk about plans for localising the manufacturing of renewable energy components in Egypt. Additionally, He Fei unveiled SunRev Solar’s proposal to establish a large manufacturing facility in Ain Sokhna inside the SCZONE. The project will span 100,000 square meters and occur in two stages. During the initial phase, the company plans to allocate roughly $100 million to manufacture 2 GW of solar cells and 2 GW of solar modules, with production expected to start in early 2026. In the second phase, the company will increase output by adding 2 GW of solar modules and 2 GW of silicon wafers.
• June 2025: Sumitomo Corporation announced that the Amunet Wind Power Plant, developed by AMUNET WIND POWER COMPANY S.A.E., a joint venture with AMEA, was finished around 2.5 months early, with commercial operations starting on May 29, 2025. The facility has a production capacity of roughly 500 megawatts, and its yearly output is projected to fulfil the electricity requirements of roughly one million households in Egypt. Amunet will provide electricity for about 25 years through a long-term power purchase agreement (PPA) with Egypt’s state-run Egyptian Electricity Transmission Company. By managing the largest onshore wind power facility in the country, Sumitomo Corporation seeks to boost its Energy Solutions Business, a key growth area in its current Medium-Term Management Plan.

Egypt Renewable Energy Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Egypt renewable energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Egypt renewable energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Egypt renewable energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.