Egypt to Expand Solar Capacity Twelvefold by 2035 - GlobalData

Egypt is poised to increase its solar photovoltaic capacity twelvefold over the coming decade as the nation accelerates its transition toward renewable energy.

A recent report from GlobalData forecasts that solar capacity will surge from 2.9 gigawatts in 2025 to 34.3 gigawatts by 2035. This rapid expansion is a core part of a broader strategy to diversify a power system that has historically relied on natural gas.

By 2035, the country’s total renewable energy capacity is expected to reach 49.7 gigawatts, with solar energy serving as the primary engine for this growth. Analysts suggest that abundant natural resources and the increasing cost-effectiveness of solar projects are driving this momentum.

“Solar photovoltaic energy is emerging as the main growth driver of Egypt’s energy sector because the country has abundant resources, projects are becoming more cost-effective, and policymakers continue to provide consistent support,” Mohammed Ziauddin, analyst at GlobalData, said.

Furthermore, consistent support from policymakers has created an environment where renewable energy can flourish alongside traditional power sources.

The government has established a supportive regulatory framework to maintain this progress, offering market access for independent power producers.

Mechanisms such as long-term power purchase agreements, sovereign guarantees, and build-own-operate models have encouraged significant private investment.

Several major projects are already underway. Norwegian developer Scatec announced in February the commissioning of the first phase of its Obelisk project, featuring 561 MW of solar capacity and a 100 MW/200 MWh battery storage system. This follows an earlier agreement Scatec signed in January with the Egyptian Electricity Transmission Company, covering a massive 1.95 GW of solar power and 3.9 GWh of storage capacity.

In addition to solar growth, Egypt is making strides in wind power, recently commissioning what is described as the largest wind farm in Africa.

The ultimate goal is to ensure that renewable sources account for 42% of the country’s electricity mix by 2030. While natural gas capacity is expected to remain stable for several years, the introduction of nuclear energy and the massive scaling of solar power will significantly reduce the nation’s dependence on fossil fuels.