Egypt implements energy reforms and USD 4.5 billion refinery program

Egypt is implementing a major energy strategy for the 2026/27 period aimed at boosting domestic production and reducing reliance on petroleum imports. A central component of this plan is a USD 4.5 billion refinery upgrade program designed to strengthen the nation’s position as a regional energy hub.

In the electricity sector, the government is working to transition from a state-dominated model toward a more liberalized market. Minister of Electricity and Renewable Energy Mahmoud Esmat indicated that efforts are underway to separate generation, transmission, and distribution functions to encourage private-sector involvement. This shift includes increasing solar, wind, and battery capacity to meet peak demands that approached 40GW in the summer of 2026.

Private investment is already flowing into the sector, exemplified by Norway’s Scatec reaching financial close on its 1.1GW Obelisk solar project. Meanwhile, the petroleum sector has shown signs of recovery, recording 0.7% growth in the third quarter of fiscal year 2025/26. Officials noted that regular payments to foreign partners have helped encourage fresh exploration and production investment.