GlobalData’s latest report, “Egypt Power Market Outlook to 2035: Market Trends, Regulations, and Competitive Landscape,” provides a comprehensive assessment of the Egyptian electricity sector. The report analyses installed capacity in GW, electricity generation in terawatt-hours (TWh), technology mix, and regulatory developments across the historical period from 2020 to 2025 and the forecast period from 2026 to 2035. It also evaluates market drivers, policy frameworks, infrastructure investment, and competitive dynamics using GlobalData’s proprietary databases, primary and secondary research, and in-house analytical expertise.

Egypt’s power system has historically been dominated by thermal generation, particularly natural gas, with large-scale combined cycle plants forming the backbone of the electricity supply. In recent years, the country has accelerated renewable energy deployment as part of a broader transition in its generation mix, with solar PV emerging as the fastest-growing technology. Within this framework, solar PV capacity is projected to increase significantly from approximately 2.9GW in 2025 to around 34.3GW by 2035, driving total renewable power capacity to nearly 49.7GW over the forecast period.

Renewable energy expansion in Egypt is supported by a comprehensive policy and investment framework. Foundational legislation such as the Renewable Energy Law and Electricity Law has enabled private sector participation through independent power producers. Incentives, including tax reductions, reduced customs duties, and facilitated land access, have improved project economics. Long-term power purchase agreements, sovereign guarantees, and the expansion of build-own-operate models have further enhanced investor confidence and supported large-scale project development.

In addition, national initiatives such as the Nexus of Water, Food and Energy platform have mobilised international financing and enabled utility-scale solar deployment. Streamlined regulatory mechanisms, including fast-track approvals under the Golden License system, have reduced project development timelines. Increasingly, new solar projects are integrating battery storage solutions to enhance grid stability and improve peak demand management.

Onshore wind and solar photovoltaic technologies account for the majority of renewable capacity additions through 2035. Solar PV represents the primary growth driver, supported by high irradiation levels and a strong pipeline of large projects. Wind capacity is also projected to expand steadily from approximately 3GW in 2025 to around 15.1GW by 2035, driven by favourable wind resources in the Gulf of Suez and Red Sea regions and continued investment activity.

Thermal generation continues to play a central role in Egypt’s electricity mix, with natural gas remaining the dominant source of power generation. Gas-fired capacity is expected to remain broadly stable at around 45GW–50GW through 2035, reflecting its importance in providing baseload and flexible supply. In parallel, nuclear power is set to emerge as a new component of the generation mix, with the El Dabaa Nuclear Power Plant projected to add approximately 4.4GW of capacity by 2035, supporting long-term diversification of the energy mix.

Looking ahead, Egypt’s power sector is expected to prioritise large-scale solar deployment as the central driver of capacity expansion. Beyond meeting domestic electricity demand, solar energy is likely to play an increasing role in enabling green hydrogen production and supporting cross-border electricity trade initiatives. Alongside continued reliance on natural gas and the introduction of nuclear power, this strategy is expected to support a diversified and resilient electricity system while strengthening long-term energy security and export potential.