Egypt installs 800 MW of solar in 2025

<p class="p1"><span class="s1">Latest analysis from GlobalData expects Egypt’s annual solar additions to reach above 2 GW over the next three years, increasing to above 3.5 GW from 2029 onwards. Cumulative capacity is expected to grow from around 2.9 GW at the end of 2025 to 34.3 GW by the end of 2035.</span></p><p><a href="https://www.pv-magazine.com/region/egypt/" rel="noopener" target="_blank"><span style="font-weight: 400;">Egypt</span></a><span style="font-weight: 400;"> added around 800 MW of solar in 2025, according to figures published by <a href="https://www.pv-magazine.com/2026/03/13/global-renewable-capacity-to-reach-8-4-tw-by-2031-says-globaldata/" rel="noopener" target="_blank">GlobalData</a>. </span><span style="font-weight: 400;">The consultancy’s latest analysis says Egypt’s cumulative solar capacity increased from 2.1 GW by the end of 2024 to around 2.9 GW by the end of 2025.</span></p>
<p><span style="font-weight: 400;">GlobalData is expecting 2.2 GW of solar to be added this year, taking total capacity to 5.1 GW by the end of 2026, followed by a further 2.1 GW in both 2027 and 2028. </span>Annual additions are anticipated to increase from then onwards, up to an estimated 3.5 GW <span style="font-weight: 400;">in 2029, taking Egypt’s total solar capacity to 12.8 GW by the end of this decade.</span></p>
<p><span style="font-weight: 400;">Yearly additions between 3.5 GW and 3.7 GW are anticipated throughout the early 2030s, taking Egypt past 20 GW of solar during 2032 and over 30 GW of solar in 2034, ahead of reaching a forecasted 34.3 GW by the end of 2035.</span></p>
<p><span style="font-weight: 400;">Solar is expected to maintain its position as Egypt’s leading form of renewables throughout the study period, with the country’s total cumulative renewable capacity expected to reach approximately 49.7 GW by 2035, GlobalData's analysis adds.</span></p>
<figure class="wp-caption aligncenter" id="attachment_341602" style="width: 600px;"><img alt="" class="size-medium wp-image-341602" height="341" src="https://www.pv-magazine.com/wp-content/uploads/2026/05/Screenshot-2026-05-11-at-10.12.21-600x341.png" tabindex="0" width="600" /><figcaption class="wp-caption-text">Egypt's cumulative solar capacity 2020-2035 <p><i>Image: GlobalData</i></p>
</figcaption></figure>
<p><span style="font-weight: 400;">Mohammed Ziauddin, Power Analyst at GlobalData, said solar is emerging as the dominant driver in Egypt’s power sector, supported by strong resource availability, improving project economics and sustained policy support. </span><span style="font-weight: 400;">“Its scalability and cost competitiveness make it well suited to meet rising electricity demand, while complementary technologies continue to support system stability,” Ziauddin explained.</span></p>
<p><span style="font-weight: 400;">GlobalData’s analysis explains that Egypt’s solar expansion is underpinned by a comprehensive policy and investment framework. </span><span style="font-weight: 400;">The consultancy says l</span><span style="font-weight: 400;">egislation opened the market to independent power producers, while tax reductions, reduced customs duties and access to land improved project viability and long-term power purchase agreements, sovereign guarantees and the expansion of build-own-operate models further strengthened investor confidence and accelerated project execution.</span></p>
<p><span style="font-weight: 400;">Egypt’s solar pipeline is dominated by utility-scale projects. Among major projects to begin construction last year was a </span><a href="https://www.pv-magazine.com/2025/12/18/amea-power-egypt-aswan-governorate-hybrid-1-gw-solar-600-mwh-storage/" rel="noopener" target="_blank"><span style="font-weight: 400;">1 GW solar</span></a><span style="font-weight: 400;"> site tied to 600 MWh of storage belonging to Amea Power and a </span><a href="https://www.pv-magazine.com/2025/05/07/scatec-starts-constructing-large-scale-solar-battery-storage-project-in-egypt/" rel="noopener" target="_blank"><span style="font-weight: 400;">1.1 GW solar</span></a><span style="font-weight: 400;"> plus 200 MWh storage project belonging to Scatec, whose entire portfolio in Egypt has been valued at </span><a href="https://www.pv-magazine.com/2025/09/17/scatecs-investment-portfolio-in-egypt-valued-at-3-6-billion/" rel="noopener" target="_blank"><span style="font-weight: 400;">$3.6 billion</span></a><span style="font-weight: 400;">. </span></p>
<p><span style="font-weight: 400;">Ziauddin told </span><b>pv magazine</b><span style="font-weight: 400;"> that despite the dominance of utility-scale projects, Egypt’s smaller scale solar segments, and in particular the commercial and industrial (C&amp;I market), are gradually gaining momentum.</span></p>
<p><span style="font-weight: 400;">“Over the forecast period, utility scale developments are expected to account for more than 60% of Egypt’s total solar market, while C&amp;I projects are expected to comprise most of the remaining share,” Ziauddin added. “Together, utility scale and C&amp;I solar are projected to represent nearly 98-99% of the country’s overall solar market.”</span></p>
<p><span style="font-weight: 400;">Ziauddin also explained that household level solar penetration remains limited in Egypt due to a combination of financial, structural, and behavioural barriers.</span></p>
<p><span style="font-weight: 400;">“Studies conducted at the household level in Cairo and Giza indicate that a significant proportion of households remain unwilling to adopt rooftop solar systems even when financing options are available, highlighting persistent affordability concerns and limited consumer confidence in the segment,” he said. “Households continue to rely heavily on conventional electricity and gas based energy sources, with solar accounting for only a marginal share of household energy usage. Residential deployment therefore remains concentrated primarily among higher income households, gated communities and premium residential developments.”</span></p>
<p><span style="font-weight: 400;">Ziauddin added that the stronger performing of the C&amp;I segment relative to residential solar is driven by declining<span> solar technology costs and a net metering framework that help to improve project viability, as well as </span></span><span style="font-weight: 400;">ongoing electricity tariff reforms. </span><span style="font-weight: 400;">He said that the government has progressively reduced electricity subsidies and implemented substantial tariff increases across C&amp;I consumer categories over the past years.</span></p>
<p><span style="font-weight: 400;">“</span><span style="font-weight: 400;">In August 2024 alone, electricity tariffs for commercial users increased by approximately 23.5% to 46%, while residential tariffs rose by 14% to 40% across various consumption brackets,” </span><span style="font-weight: 400;">Ziauddin told <strong>pv magazine</strong>. “</span><span style="font-weight: 400;">These increases have significantly improved the economics of self generation, particularly for energy intensive industries seeking to reduce operating costs and improve long term price visibility. As grid electricity prices continue to rise, the payback period for onsite solar systems has become increasingly attractive for factories, manufacturing facilities, logistics centers, hotels, resorts, and large commercial buildings.”</span></p>
<p><span style="font-weight: 400;">Egypt is also working to develop its local solar manufacturing capabilities. In December, a </span><a href="https://www.pv-magazine.com/2025/12/16/ja-solar-egypt-uae-bahrain-gigafactory-modules-cells-export-market-suez-canal-economic-zone/" rel="noopener" target="_blank"><span style="font-weight: 400;">groundbreaking ceremony</span></a><span style="font-weight: 400;"> took place for an integrated solar manufacturing complex set to feature three facilities targeting an annual manufacturing capacity of 2 GW of solar cells and 2 GW of solar modules.</span></p>
<p><span style="font-weight: 400;">Earlier this year, Egyptian company Kemet </span><a href="https://www.pv-magazine.com/2026/01/19/gcl-cornex-tbea-to-build-solar-manufacturing-complex-in-egypt/" rel="noopener" target="_blank"><span style="font-weight: 400;">signed three agreements</span></a><span style="font-weight: 400;"> with Chinese companies, covering plans for a 5 GW solar cell complex, a 5 GWh battery energy storage factory and Egypt’s first solar inverter factory.</span></p>