Egypt Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Egypt Renewable Energy Market Analysis

The Egypt Renewable Energy Market was valued at 9.81 gigawatt in 2025 and estimated to grow from 11.79 gigawatt in 2026 to reach 29.64 gigawatt by 2031, at a CAGR of 20.23% during the forecast period (2026-2031).

The Egyptian renewable energy market is expanding because policymakers introduced the national target to source 42% of electricity from renewables by 2030. Continued multilateral finance, abundant solar irradiance of about 2,600 kWh/m² in southern governorates, and world–class 55% wind capacity factors along the Gulf of Suez sustain robust project pipelines. Utility-scale schemes still capture 88% of installed capacity, yet distributed rooftops and captive plants record the fastest expansion. The government’s allocation of 41,700 km² for green-hydrogen-linked solar and wind projects underpins a future export platform for low-carbon fuels.

Egypt Renewable Energy Market Trends and Insights

Supportive Government Targets & Incentives

The National Low-Carbon Hydrogen Strategy announced in August 2024 estimates a USD 18 billion GDP uplift by 2040 and more than 100,000 new jobs. Public-sector capital re-allocation means half of FY 2024/2025 investment spending is earmarked for green projects compared with 15% three years earlier. The “Golden Licence” regime under Investment Law 72/2017 condenses permitting to a single window, accelerating bankable projects that meet export or import-substitution thresholds. Under the NWFE platform, USD 14.5 billion of concessional finance has flowed to renewables since 2020, with USD 3.9 billion channelled to private developers. Feed-in tariffs ranging from 84.8 Pt/kWh for sub-200 kW systems to 102.5 Pt/kWh for 20-50 MW plants ensure predictable revenues.

Abundant Solar Irradiance & High-CF Wind Corridors

Southern Egypt registers solar brightness near 2,600 kWh/m² annually, placing the Egyptian renewable energy market among the world’s most resource-rich solar provinces. Red Sea wind corridors exceed 7 m/s, delivering 55% to 63% capacity, enabling levelised costs below USD 0.08/kWh for offshore arrays. Benban Solar Park, a 1.5 GW complex over 37 km², showcases utility-scale density and cost discipline. With resource synergies, hybrid solar-wind sites support 24-hour hydrogen electrolyser operation targeting USD 1.7/kg production by 2050. Such natural advantages anchor the long-term competitiveness of the Egyptian renewable energy industry.

Grid Congestion & Transmission Bottlenecks

Legacy networks designed for centralised gas turbines strain as renewable penetration edges beyond 3.5 GW, mirroring global queues of 3,000 GW awaiting interconnection. Egypt’s wide-area monitoring rollout across 220/500 kV lines lifts visibility but earmarks capital needs approaching USD 600 billion globally by 2030. The 3,000 MW Egypt–Saudi HVDC link scheduled for 2025 provides critical redundancy for variable flows. Planned Libya and Cyprus interconnectors of up to 3,000 MW each could turn Egypt into a regional balancing hub, yet rely on timely domestic grid upgrades. Distribution-level constraints and limited smart-meter penetration still curb the rapid uptake of small-scale generation in the Egyptian renewable energy market.

Other drivers and restraints analyzed in the detailed report include:

1. Multilateral Climate-Finance Inflows
2. Green-Hydrogen Export MoUs Triggering Additional Capacity
3. FX Depreciation Inflates Imported Equipment Costs

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Wind posted a 35.10% share of Egypt renewable energy market size in 2025 and is set for a 31.05% CAGR through 2031 as the Gulf of Suez corridor continues to deliver 40%-plus capacity factors. Hydropower anchored by the 2.1 GW Aswan High Dam retains the largest single-asset footprint but loses share as environmental and transboundary concerns block new dams. Solar PV and CSP supplied roughly 27.84% of capacity in 2025 and will add 8 GW by 2031 on the back of USD 0.12 / W bifacial modules.

Developers prioritize wind for hydrogen because 35%-plus utilization is essential to keep electrolyzer costs down, a threshold solar seldom meets. ACWA Power’s 1.1 GW Suez project, equipped with 138 Envision 6 MW turbines, is contracted to a 400 MW electrolyzer that will export green ammonia to Rotterdam. ENGIE’s 650 MW Red Sea Wind farm added two-hour lithium-ion storage to move power to evening peaks, showcasing hybrid revenue stacking. Pumped-storage options advance slowly due to USD 3.8 billion capital needs and seven-year timelines, while CSP adoption stalls under water scarcity and price competition from solar-plus-battery layouts.

The Egypt Renewable Energy Market Report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

List of Companies Covered in this Report:

1. Vestas Wind Systems A/S
2. Siemens Gamesa Renewable Energy S.A.
3. General Electric Renewable Energy
4. Envision Energy
5. Scatec ASA
6. ACWA Power
7. Masdar (Abu Dhabi Future Energy)
8. SkyPower Global
9. Infinity Power
10. Lekela Power
11. Toyota Tsusho Corporation
12. JinkoSolar Holding Co., Ltd.
13. Elsewedy Electric Co. SAE
14. Orascom Construction PLC
15. New & Renewable Energy Authority (NREA)
16. Hassan Allam Utilities
17. Siemens Energy Egypt
18. EDF Renewables
19. TotalEnergies Renewables
20. Engie Egypt

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support