Egypt’s Administrative Capital for Urban Development (ACUD) is planning to invest $1.5 billion in a 1-gigawatt solar power plant and a 500-megawatt energy storage project, as it moves to expand the New Capital’s reliance on renewable energy sources, a company official told Al Manassa.
The company views renewable energy projects as a key part of the infrastructure needed to support the capital’s future development, with the expansion aimed at securing the city’s future electricity needs amid the continued growth in ongoing projects, according to the source who spoke on condition of anonymity.
The projects are expected to be carried out with local and international partners, with the financing structure yet to be revealed, according to an ACUD official. Implementation is set to begin next year, with completion targeted for the second half of 2028, amid accelerating construction and rising electricity demand in the Capital.
The company signed a memorandum of understanding with a subsidiary of China Energy Group to conduct studies for developing the solar power plant and energy storage project, ACUD’s Managing Director Ahmed Fahmy said in an interview with the local OnTV channel on Saturday.
According to the company, renewable sources have already covered more than half of the capital’s electricity consumption during peak periods, surpassing the initial target of 30% to 35%. The achievement has encouraged ACUD to move ahead with new projects aimed at further expanding reliance on clean energy, according to the official.
Cost estimates for implementing infrastructure and utilities projects in the second phase, which kicked off in 2025, of the New Administrative Capital have risen sharply, reportedly exceeding the initial estimated total cost close to 500 billion Egyptian pounds (around $10.6 billion at current exchange rate).
Cost estimates for infrastructure and utilities projects in the New Administrative Capital’s second phase, which began in 2025, have risen sharply, reportedly surpassing the initial estimate of nearly 500 billion Egyptian pounds (about $10.1 billion at the current exchange rate).
Pressure to secure fuel supplies for power plants intensified after energy prices rose during the US-Iran war, prompting the government to accelerate plans to expand renewable energy’s share of the electricity mix to 42% by 2028, instead of the previous 2030 target.
However, the source explained that the company considers these projects long-term investments, arguing that the higher initial costs of building solar power plants and central cooling systems would be offset by lower operating costs in the future, alongside reducing pressure on the national electricity grid and delivering economic, environmental and health benefits.
Notably, ACUD requires real estate developers and project contractors to install solar power systems on 50% of building rooftops, as part of its construction and sustainability requirements.
The ACUD is jointly owned by state entities, with the New Urban Communities Authority holding a 49% stake, followed by the military’s National Service Projects Organization with 29% and the Armed Forces Land Projects Organization with 22%, giving the military a controlling share.
