In this paper, the impact of integrating photovoltaic plants (PVPs) with high penetration levels into the national utility grid of Egypt is demonstrated. Load flow analysis is used to examine the grid capacity in the case of integrating the desired PVPs and computer simulations are also used to assess the upgrading of the transmission network to increase its capacity. Furthermore, the impact of increasing the output power generated from PVPs, during normal conditions, on the static voltage stability was explored. During transient conditions of operation (three-phase short circuit and outage of a large generating station), the impact of high penetration levels of PVPs on the voltage and frequency stability has been presented. Professional DIgSILENT PowerFactory simulation package was used for implementation of all simulation studies. The results of frequency stability analysis proved that the national grid could be maintained stable even when the PVPs reached a penetration level up to 3000 MW of the total generation in Egypt. Transmission network upgrading to accommodate up to 3000 MW from the proposed PV power plants by 2025 is suggested. In addition, analysis of voltage stability manifests that the dynamic behavior of the voltage depends remarkably on the short circuit capacity of the grid at the point of integrating the PVPs.