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Egypt Sets Ambitious Target of 5 GW Renewable Capacity by 2027 in Africa Energy Transition Roadmap

Cairo: Egypt plans to add 5 gigawatts of new renewable capacity by 2027 and secure 2 GW in power purchase agreements (PPAs) within 18 months as part of a roadmap to accelerate Africa's energy transition, Electricity Minister Mahmoud Esmat said on Thursday, October 2, 2025.According to State Information Service Egypt, Esmat, speaking at the 21st Congress of the Association of Power Utilities of Africa (APUA), highlighted that Egypt will also launch three pilot green economic zones and create a regional risk-mitigation mechanism with development banks to encourage private investment.Esmat noted that Egypt has rebuilt its energy infrastructure and reformed legislation to attract capital. The reforms include introducing private-to-private PPAs, streamlined licensing through a one-stop shop, and tariff frameworks that balance industrial competitiveness with household protection.The renewable-powered economic zones are being developed in East Port Said and Upper Egypt. These zones will feature smart city proj ects with decentralized generation, smart meters, demand-response systems, and green municipal bonds.Esmat reaffirmed Egypt's national energy strategy, under which renewable energy is set to constitute more than 42 per cent of the power mix by 2030 and is projected to reach 65 per cent by 2040.

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