A new Memorandum of Understanding for a Strategic Cooperation in Energy between Egypt and the European Union was signed in April 2018. It aims to update the energy sector  cooperation and fully reflects the EU's priority of implementing a clean energy transition in its neighboring regions. In addition, enhanced energy dialogue at political level with North Africa and Eastern Mediterranean is  expected to strengthen EU energy security via diversification of EU’s energy suppliers and routes.

Cooperation in the energy sector during the period 2018 – 2022 between the EU and Egypt will cover following areas:  

   1. Further assistance to the development of the oil and gas sector, especially in order to support capacity building programs, to open up Egypt’s gas market and to encourage investment in the oil and gas industry.

   2. Continued support to the electricity sector reforms.

   3. Development of the Energy Hub: Both the EU and Egypt will support Egypt’s role in becoming and sustaining an Oil & Gas Hub in the Mediterranean. EU believes that this would principally facilitate the  diversification of gas supplies to Europe and enhance EU’s energy security. Both sides of the Memorandum also intend to work jointly to support Egypt's role as an Electricity Hub in order to strengthen interconnections and  cross-border trading.

   4. Further assistance with joint measures and projects in the field of renewable energy: Significant importance was given to supporting greater investment and fast tracking, where possible, the incorporation of renewable energy into Egypt’s energy mix, in line with the Paris Agreement. In particular, the EU and Egypt intend to improve policy, regulatory, financial, technical and environmental preconditions needed to achieve greater  investments and scale in renewable energy in Egypt.

   5. Additional support on energy efficiency strategies, policies and measures; across various sectors: The EU will support Egypt in the implementation of national policy on energy efficiency improvements and savings set out in the  National Energy Strategy to 2035 and Egypt’s Nationally Determined  Contribution.

   6. Cooperation in the technological, scientific and industrial areas across the energy field including transfer and localisation of European technology into the Egyptian energy sector, capacity building, industrial and scientific cooperation in the energy sector covering energy efficiency and renewable energy as well as dissemination of data and information on best available  technologies and best international practices.

Commissioner Arias Cañete said: “As a global leader in the clean energy transition, the EU is keen to support Egypt with sharing of experience, financial and technical assistance, and with the mobilisation of international finance. We need to not only public funds but in particular private investment to accelerate the Egyptian energy transition in order to scale up renewable and efficiency investment, modernise the gas sector, and turn Egypt again into an energy hub. Very ambitious energy sector reforms  across the board have already been undertaken, but more are needed: this will create growth and jobs in the country and will enhance regional stability and prosperity, also benefiting the EU.”