BRUSSELS — Europe is stepping up efforts to tap North Africa’s vast renewable energy potential, committing billions of dollars to solar, wind, hydrogen and electricity infrastructure as the European Union seeks to reduce its dependence on imported fossil fuels and strengthen energy security.
Under its T-MED initiative, the European Commission has pledged nearly $5.8 billion for renewable energy projects across the Middle East and North Africa, with the programme aimed at expanding electricity connections between the two regions and supporting Europe’s transition to cleaner energy.
The initiative is expected to support solar projects in the Sahara and wind farms across North Africa and the Mediterranean. Power generated from these facilities could be transmitted to Europe through high-voltage subsea cables, creating a cross-Mediterranean clean-energy corridor.
The European Commission estimates that the MENA region has around 2,300 gigawatts of renewable energy potential, more than twice the European Union’s current installed capacity. It also estimates that solar and wind power can be generated in the region at costs 30% to 40% lower than in Europe.
The EU expects its financing to attract up to $29 billion in additional private investment by 2035 for renewable power, hydrogen and electricity networks. However, the Commission estimates that nearly $115 billion will ultimately be needed to fully develop the region’s renewable energy potential.
European Commissioner for Energy and Housing Dan Jørgensen said investment in clean energy infrastructure had become increasingly important as geopolitical disruptions expose vulnerabilities in Europe’s fossil fuel supply chains.
“The EU’s bill for fossil fuel imports has increased by over €47 billion in the past 100 days, but not a single molecule of energy in addition,” Jørgensen said, highlighting the need for cleaner energy systems, modern grids and stronger regional interconnections.
Under the initiative, the European Commission expects at least 15 gigawatts of new renewable energy capacity to be developed by 2035, while more than 100,000 jobs could be created across participating markets.
Morocco, Egypt emerge as key partners
Morocco and Egypt are emerging as key partners in Europe’s strategy because of their renewable energy resources and existing energy infrastructure.
Morocco has already attracted substantial European investment in large-scale solar generation. In 2019, the EU and European Investment Bank invested €106.5 million in the Noor Ouarzazate solar complex, a 580-megawatt facility near Ouarzazate.
The project is expected to reduce carbon emissions by about 760,000 tonnes annually, reinforcing Morocco’s position as one of Europe’s most important renewable energy partners in North Africa.
Egypt, meanwhile, is receiving European support to strengthen its electricity network. In June, a financing package of up to $794 million was announced to upgrade and expand the country’s power infrastructure.
The package includes a $690 million loan from the European Investment Bank’s development arm and up to $104 million in European Commission grants.
Germany targets Morocco power link
Germany is pursuing an even more ambitious connection with Morocco through the proposed Sila Atlantik project, which could become one of the world’s longest intercontinental subsea power links.
The project envisages two high-voltage cables stretching about 4,800 kilometres between Morocco and Germany, with the capacity to transmit up to 15 gigawatts of solar and wind-generated electricity.
If completed, the connection could supply as much as 5% of Germany’s annual electricity demand. However, disagreements over the project’s structure and financial guarantees have delayed progress.
For Europe, the push into North Africa extends beyond climate policy. Greater access to the region’s abundant solar and wind resources could diversify electricity supplies, reduce exposure to imported fossil fuels and strengthen the bloc’s long-term energy security.
For North African economies, the emerging partnership presents an opportunity to attract large-scale foreign investment, expand renewable generation, create jobs and establish stronger positions in the global clean-energy supply chain.
The scale of the opportunity, however, will depend on whether governments and investors can build the transmission infrastructure required to move electricity across borders, streamline regulatory approvals and establish predictable frameworks for cross-border power trading.
If those challenges can be addressed, North Africa could become more than a source of renewable energy for Europe. It could emerge as a strategic hub connecting African renewable resources with European electricity markets.
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