Egypt plans to invest EGP136.3 billion ($2.8 billion) in its electricity and renewable energy sector for fiscal year 2025/26, with a key focus on enhancing transformer capacity and grid infrastructure, according to the Ministry of Planning, Economic Development and International Cooperation.

This investment nearly doubles last year's target and prioritizes expanding transformer-related infrastructure to support increasing electricity generation and transmission needs. The plan aims to raise electricity coverage to 99.8% of the population by June 2026 and increase electricity interconnection capacity to 3,900 megawatts--a move that heavily depends on upgrading high-voltage transformer systems.

Minister Rania Al-Mashat highlighted the importance of diversifying energy sources while optimizing the use of existing transformer networks to reduce electricity losses, targeted to drop to 16.5%. The investment includes adding 1,200 MW of thermal generation capacity, which will require significant transformer and grid enhancements to ensure efficient power distribution.

Public investments will account for 73% of the funding, while private sector contributions, including partnerships with companies like China Energy International, will support transformer technology development alongside solar power projects and battery storage solutions.

Egypt's strategy emphasizes strengthening transformer infrastructure to enable renewable energy integration, improve grid reliability, and boost regional electricity trade through expanded interconnections with neighboring countries such as Saudi Arabia and Sudan.