Recently, Egyptian Minister of Electricity and Renewable Energy Mahmoud Esmat met with a delegation led by Vice President Gong Yu of China Southern Power Grid International Corporation at the ministry headquarters in Abasia. The core issue of this meeting goes straight to how Egypt can increase the proportion of renewable energy in the national power structure to 45%, with a target year of 2028. The sense of urgency brought about by the advancement of the timetable from 2030 to 2028 has transformed this power grid upgrade dialogue from a courtesy visit to a deep docking of technical solutions and execution paths.

45% renewable energy locked in by 2028

Egypt's renewable energy target has been advanced from 42% by 2030 to 45% by 2028. In May 2026, Egyptian President Sisi officially approved this early target, emphasizing the need to accelerate project execution and complete grid connection on schedule.

In June 2026, the Egyptian government allocated 60 billion Egyptian pounds, approximately 1.19 billion US dollars, to the Egyptian Electricity Transmission Company, specifically for power grid renovation and expansion projects, supporting the grid connection of photovoltaic and wind power generation projects. The goal has been set, funds are in place, and the timeline is clear. The upgrade of Egypt's power grid has entered the implementation stage from discussion.

Nankai Luo Distribution Network Loss Reduction Verification China Plan

China Southern Power Grid is not a new face in Egypt. In September 2024, Southern Power Grid and Egypt's Nankai Luo Distribution Company launched the Nankai Luo Distribution Network Loss Reduction Pilot Project, which is the first overseas distribution network loss reduction pilot project of Southern Power Grid. The project team has introduced an advanced four point distribution network management system and deployed a complete set of metering automation systems.

The achievement data shows that the comprehensive line loss rate in the pilot area has decreased from 17.6% to 6%, a decrease of more than 11 percentage points. Key indicators such as the online rate of terminals and meters, and the success rate of meter reading have reached over 99%. The project was officially accepted by Egypt in December 2025, verifying the feasibility of the Chinese solution in the Egyptian power grid environment and accumulating technical trust for comprehensive upgrading cooperation.

Four major equipment tracks benefit from concentration

The talks focused on the comprehensive upgrade of the Egyptian power grid and evaluated multiple cooperation proposals, releasing clear signals for equipment procurement. In terms of intelligent distribution system, Egypt is transforming from traditional power grid to smart grid, which requires a large number of smart meters, distribution automation terminals, communication modules and edge computing devices. In terms of expanding energy storage systems, battery energy storage systems are listed as the core means of stabilizing the power grid. The Egyptian Presidential Palace has confirmed the construction of grid connected and independent energy storage stations with a total capacity of 4000 megawatts in Minya, Alexandria, and Qena. Keywords:Engineering Information、Construction News

In terms of upgrading the transmission network and control center, both parties discussed the implementation of advanced digital solutions, the development of control centers, and other issues, corresponding to the bulk procurement needs of traditional transmission and transformation equipment such as transformers, circuit breakers, cables, towers, SCADA systems, and dispatch automation platforms. The special allocation of 60 billion Egyptian pounds means that the procurement of these categories will be concentrated and released, and Chinese manufacturers of smart grid equipment, energy storage systems, and transmission and transformation equipment are entering a clear window period for going global.Editor/Gao Xue