Cairo: The Egyptian Electricity Transmission Company has renewed its electricity exchange contract with the Jordan National Electric Power Company (NEPCO) for the year 2026, as announced by the Egyptian Ministry of Electricity and Renewable Energy. This renewal is a strategic move in line with Egypt's ambition to establish itself as a central hub for energy transmission and exchange across Asia, Africa, and Europe. The agreement aims to enhance the operational efficiency of Egypt's national electricity grid and improve the quality of its electricity supply.
According to State Information Service Egypt, the contract renewal is based on a previously agreed memorandum of understanding between Egypt and Jordan, under which Egypt has been supplying electricity to Jordan. The signing ceremony was attended by Egyptian Minister of Electricity and Renewable Energy Mahmoud Esmat and Jordan's Minister of Energy and Mineral Resources Saleh Al-Kharabsheh. This partnership is part of a broader initiative to boost electrical interconnectivity among Arab countries.
Egypt has allocated EGP 136.3 million for investments in its electricity and renewable energy sector for the fiscal year 2025/2026. The country is targeting nearly complete electricity coverage at 99.8 percent and aims to increase its annual generation capacity to 235 billion kWh. This is an increase from 229 billion kWh recorded two years ago, along with plans to add 1,200 megawatts of new thermal power generation.
Al-Kharabsheh highlighted ongoing efforts to increase the capacity of the connection line between Egypt and Jordan to 2,000 megawatts. This development is part of a larger electricity interconnection project involving several Arab countries. Esmat noted that the renewed agreement will stabilize and potentially increase the electricity supply between Egypt and Jordan, yielding economic benefits for both nations.
In 2025, Egypt transferred 306 million kWh of electricity to Jordan, valued at $28.2 million. Esmat also mentioned Egypt's ongoing projects, including the completion of the first phase of an electricity interconnection with Saudi Arabia and future plans to export renewable energy to European countries like Italy and Greece.
With rising electricity peak loads and a shift towards renewable energy, investments in Egypt's national grid are becoming increasingly imperative. The European Bank for Reconstruction and Development (EBRD) and the EU recently supported Egypt's green energy transition with a financing package worth 200 million pounds for grid upgrades.