Portugese developer Martifer Solar and Egyptian engineering firm EEC are to create a 25MW solar plant in the African country.
The firms signed a memorandum of understanding with the National Renewable Energy Authority for a site in Minya.
The Egyptian Government has a feed-in tariff programme for solar and wind energy as it aims to generate a fifth of its energy from renewable sources by 2020.
Martifer Solar business development manager Nuno Oliveira said: “We anticipate that, once connected, this project will help Egypt to combat its growing power deficit.
“It is both a challenging and exciting venture to expand the solar business in another new country within Africa, where we believe that our significant international expertise will be the key driver for success in the region.”
Construction could begin later this year.