Egypt Launches Global Tender for Major Wind Energy Grid Infrastructure Project

Egypt is preparing to launch an international tender for a major electricity transmission project valued at EGP 12 billion or approximately $226 million to connect wind energy facilities in the Gulf of Suez to the national power grid according to government sources.

The ambitious infrastructure project involves constructing a 390 kilometer transmission line with a capacity of 500 kilovolts making it one of the largest transmission lines in the country. Completion is targeted for mid-2027 with implementation expected to take about one year.

The transmission line is specifically designed to integrate renewable energy projects into Egypt’s national grid with particular focus on developments by Norway’s Scatec and Orascom Construction. This infrastructure represents a critical component of Egypt’s broader strategy to expand grid capacity and absorb rising volumes of renewable energy.

The project comes as Egypt accelerates its clean energy strategy with renewable capacity rising by 26 percent in fiscal year 2024-2025 to 8.6 gigawatts up from 6.8 gigawatts the previous year. The government has set ambitious targets to increase renewables share to 45 percent of the energy mix by 2035.

Several major renewable energy projects are driving the need for enhanced grid infrastructure. Scatec announced in January plans to build a large solar plant and energy storage facility in the Minya governorate with generation capacity of 1.7 gigawatts supported by battery energy storage systems with capacity of 4 gigawatt-hours.

Meanwhile a consortium comprising Orascom Construction French utility Engie and African renewables company Aeolus announced in March plans to develop a 900MW onshore wind farm near Ras Shokeir. The project will follow a 25-year build-own-operate model with phased commissioning starting in December 2027.

The Gulf of Suez region has become a focal point for Egypt’s renewable energy development due to its exceptional wind resources. The area offers high wind speeds averaging 8-10 meters per second making it ideal for large-scale wind farm development.

Expanding transmission infrastructure is becoming critical to overcoming grid constraints and enabling large-scale integration of renewable energy. The new transmission line will help Egypt meet its strategic objective of sourcing 42 percent of its energy from renewables by 2030.

The project forms part of Egypt’s Vision 2030 strategy which targets 14 gigawatts of wind capacity by the end of this decade. Several large-scale projects are already underway including the massive 10 gigawatt onshore wind farm being developed by Masdar consortium in partnership with Infinity Power and Hassan Allam Utilities.

Egypt’s renewable energy expansion is driven by multiple factors including the need to reduce dependence on natural gas for domestic electricity generation maximize liquefied natural gas export earnings and address challenges such as summer blackouts and declining production from offshore gas fields.

The international tender for the Gulf of Suez transmission project represents a significant opportunity for global infrastructure companies to participate in Egypt’s energy transition. The project underscores Egypt’s commitment to building the grid infrastructure necessary to support its ambitious renewable energy targets and position the country as a regional clean energy hub.