Egypt approves $388m in private renewable energy projects for direct industrial supply
The approved projects represent a combined capacity of 400 megawatts and total investments of $388m. Each company will build its own renewable energy power plant and supply electricity directly to industrial clients, while paying a transmission fee to the Egyptian Electricity Transmission Company (EETC). These agreements are structured with no financial burden on the state and do not require sovereign guarantees.
Among the newly qualified projects, Neptune for Electricity Production and Sales will supply solar power to the Suez Steel Plant. AMEA Power will provide electricity from its solar facility to the Suez Canal Container Terminal and Bivar Group for Chemicals. TAQA PV is set to supply Ezz Steel through a hybrid solar and wind power station, while ENARA for Renewable Energy Services will generate electricity from a hybrid facility for both the Helwan Fertilizers plant and the Alamein Silicon Products Complex.
Minister Esmat stated that the initiative is being implemented in line with Egypt's Electricity Law, which is designed to open the market to competition, enhance efficiency, and attract private investment. He emphasized that liberalizing the electricity sector is a key strategic step in building a dynamic, competitive energy market that reduces costs, improves service quality, and strengthens Egypt's role as a regional energy hub.
The Minister highlighted that the P2P framework enables industrial consumers to secure reliable, renewable electricity while contributing to their climate goals. These projects will also allow companies to certify their clean energy usage and reduce emissions, facilitating access to green export markets.
Esmat noted that the Egyptian Electric Utility and Consumer Protection Regulatory Agency had completed its review of qualification submissions from seven companies, each proposing 100-megawatt renewable energy projects. The evaluation process was conducted in collaboration with a global consulting firm and the European Bank for Reconstruction and Development (EBRD), which helped develop the regulatory guidelines and legal framework for the P2P agreements.
He reaffirmed the Ministry's commitment to building a transparent and investor-friendly environment that enables both producers and consumers to actively participate in Egypt's energy transition. These efforts are integral to supporting the national green economy agenda, expanding renewable energy capacity, and modernizing the country's power infrastructure.
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The meeting, attended by senior Egyptian and Russian officials overseeing the Dabaa NPP, discussed the latest developments and progress in this vital strategic project. The discussion focused on the importance of enhancing joint coordination and monitoring the progress of work to ensure its implementation according to the specified timetables. During the meeting, the two sides reviewed in detail progress on the various engineering, technical, and administrative aspects of the project in addition to reviewing future plans and targets for achieving its main phases. Helmi and Petrov affirmed their joint commitment to completing all the work within the scheduled deadlines and emphasised the need to enhance close cooperation and overcome any obstacles to ensure efficient and effective progress. THE DABAA PLANT: The Dabaa NPP is under construction in the Matrouh governorate on the Mediterranean coast 170 km west of Alexandria and 320 km northwest of Cairo. 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El-Sisi said 'this is a historic moment that will forever remain engraved in the history and memory of our nation.' He hailed the project as bearing witness to strong Egyptian-Russia cooperation and an additional milestone to those already achieved throughout history. El-Sisi said the Dabaa plant is progressing at a faster pace than planned, reflecting the importance that the Egyptian state attaches to the energy sector as a fundamental driver of economic growth. The four nuclear reactors at the plant are capable of producing 1200 MW each. They use the innovative GEN III+ design, standard technology used today in generating nuclear power around the world. The first unit is expected to begin commercial operations in 2026, while the commissioning of the remaining three reactors is scheduled for 2029. The Dabaa plant will meet the highest safety standards in compliance with International Atomic Energy Agency (IAEA) regulations. 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The reactor is owned and operated by the Egyptian Atomic Energy Authority (EAEA), headquartered at the Nuclear Research Centre in Inshas some 40 km northeast of Cairo. The Inshas project came in response to Israel's decision to build a nuclear complex — the Dimona project — in cooperation with France in the mid-1950s. In 1983, Egypt began to revive its nuclear power programme, and the Dabaa site on the Mediterranean coast was selected to host the first nuclear plant. The plan was aborted following the 1986 Chernobyl accident in Ukraine, however. In April 2013, Egypt approached Russia to renew its nuclear cooperation agreement, focusing on the construction of a nuclear power plant at Dabaa. In February 2015, a further agreement was signed between Rosatom and the Ministry of Electricity and Renewable Energy, in which they 'agreed to launch detailed discussions on the prospective project'. At that time, President Putin visited Egypt and he and President El-Sisi signed a memorandum of understanding to cooperate on nuclear power. 'If the final decisions are made, they will relate not only to the construction of a nuclear power plant, but also to the creation of a whole new nuclear power industry in Egypt,' Putin said at a press conference in Cairo. According to reports, the Dabaa NPP will cost around $30 billion. It is being financed through a $25 billion loan extended by Russia to Egypt under a financing agreement signed between the Ministry of Finance of Egypt and the Ministry of Finance of the Russian Federation. In November 2015, an intergovernmental agreement was signed with Russia to build and operate the four reactors, including fuel supply, used fuel, training and the development of regulatory infrastructure. A financing agreement for a Russian state export loan was signed, covering 85 per cent of the cost, with repayments to be made over 22 years in 43 equal semi-annual installments (the first installment is due on 15 October 2029). Egypt can repay Russia in either US dollars or in Egyptian pounds and will pay an interest rate of three per cent. Putin has recently approved an amendment to the Dabaa NPP loan that allows Egypt to pay the installments in Russian rubles instead of the currencies agreed on in the original agreement. In May 2017, the gannounced that the loan was for $25 billion and would cover 85 per cent of the cost of the four 1200 MW units, with Egypt committed to raising the remaining 15 per cent ($5 billion) for construction costs, the import of specialised equipment, and technical and managerial expertise. The Ministry of Electricity and Renewable Energy stated in 2020 that 'Egypt will pay its 15 per cent of the costs by selling the energy generated from the nuclear reactors at the plant.' 'This project will not be costing Egypt anything' as a result, said Egypt's former electricity minister Mohamed Shakir, noting that the price of electricity produced by nuclear power is much lower than that produced by natural gas. In April 2019, the NPPA received approval for the Dabaa site from the Egyptian Nuclear Regulation and Radiological Authority (ENRRA). In December 2019, the NPPA signed a further contract with engineering company Worley Ltd to serve as a consultant for the Dabaa project to 2030, providing technical support for the NPPA's design review, project management, procurement, construction management, training, procedure development, quality assurance, and the commissioning of the plant. The Covid-19 pandemic in February 2021 led to the slowing down of the implementation of the Dabaa project. In July 2022, however, work resumed at full capacity and construction permits from ENRRA for units one and two were issued. In March and August 2023, ENRRA issued a construction licence for units three and four. The first concrete for unit four was poured in January 2024. * A version of this article appears in print in the 10 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
