Key facts
- Europe is investing in North Africa's renewable energy potential to support its green transition.
- The EU's T-MED initiative pledges nearly $5.8 billion for renewable energy projects in the Middle East and North Africa.
- The plan includes deploying solar and wind power in North Africa and transmitting electricity to Europe via undersea cables.
- The MENA region has an estimated renewable energy potential of 2,300 GW, more than double the EU's current capacity.
- Renewable energy in MENA is expected to be 30-40% cheaper than in Europe.
- The initiative aims to develop at least 15 GW of new renewable energy capacity by 2035.
Europe is significantly increasing its investment in North Africa's clean energy sector, aiming to establish robust energy connections that support the continent's green transition and reduce reliance on fossil fuels. The European Union and several member states are channeling billions into countries like Morocco and Egypt, leveraging their favorable climate conditions for solar and wind power generation.
The European Commission's T-MED initiative, launched in June, has pledged nearly $5.8 billion towards renewable energy projects across the Middle East and North Africa (MENA). This initiative seeks to deploy solar panels in the Sahara Desert and wind turbines along the Mediterranean coast, with the generated electricity to be delivered to Europe via high-voltage undersea transmission lines. This strategy is seen as a way to accelerate Europe's transition away from fossil fuels and meet its climate targets, as the MENA region possesses an estimated 2,300 GW of renewable energy potential, more than double the EU's current installed capacity, and at a potentially 30-40% lower cost.
The EU financing is intended to catalyze up to $29 billion in private funding by 2035, supporting the growth of solar, wind, hydrogen, and electricity grid development in the MENA region. However, the EC estimates that the region will require nearly $115 billion in total investment to fully realize its renewable energy potential. The EC anticipates that this will attract further investment from governments, development banks, and private entities, while also encouraging MENA countries to streamline permitting processes, enhance grid access, and strengthen regulatory frameworks.
European Commissioner for Energy and Housing, Dan Jørgensen, underscored the strategic importance of green energy investments amidst ongoing geopolitical challenges that have caused energy shortages and price hikes. He noted that the EU's fossil fuel import costs have surged significantly without a corresponding increase in energy supply, emphasizing the need for energy security based on electrified, clean energy systems and improved connectivity. This aligns with a global trend toward diversifying energy production.
The T-MED initiative aims to establish at least 15 GW of new renewable energy capacity by 2035 and create over 100,000 jobs, thereby deepening energy ties between Europe and MENA. This initiative builds on previous investments, such as the EU and European Investment Bank's €106.5 million contribution to Morocco's Noor Ouarzazate solar power complex in 2019. More recently, the EU announced a financing package of up to $794 million for Egypt to upgrade its electricity network, including a $690 million loan from EIB Global and up to $104 million in EC grants.
Germany is also pursuing a significant project, Sila Atlantik, with Morocco, aiming to develop the world's longest intercontinental undersea power link. This project, if realized, would involve two high-voltage subsea cables stretching approximately 4,800 km to deliver up to 15 GW of solar and wind power from Morocco to Germany, potentially supplying up to 5% of Germany's annual electricity demand. The project follows the collapse of a similar proposed Morocco-UK link. The European Commission's T-MED initiative represents the most ambitious plan to date to expand MENA's renewable energy capacity and enhance clean energy trade, fostering diversification and strengthening energy security across Europe, North Africa, and the Middle East.