The European Bank for Reconstruction and Development is supporting Egypt’s transition to a green economy with a 200 million euro financing package for the Egyptian Electricity Transmission Company, marking one of the country’s first major grid investments under the EBRD-led energy pillar of Egypt’s Nexus of Water, Food and Energy programme.
The financing package consists of an EBRD loan of up to 165 million euros, supported by an investment grant from the European Union Neighbourhood Investment Platform of up to 35 million euros. Investment in EETC’s grid infrastructure is urgently needed in response to growth in the peak load for electricity and to successfully integrate Egypt’s ambitious renewable energy initiatives in the coming years.
The financing will enable EETC to enhance and reinforce the country’s electricity transmission grid by upgrading a 500 kilovolt substation in the Cairo governorate. This investment, crucial for the stability of the network, is directly linked to the decommissioning of a gas-fired power plant, Shoubra El Kheima, one of the thermal power plants scheduled for decommissioning under the energy pillar of the NWFE programme.
The investment will also support the construction of a high-voltage overhead transmission line to evacuate more than 2.1 gigawatts of renewable energy from the Gulf of Suez region. Advancing renewable energy in Egypt will help the country to reduce energy costs and facilitate the planned phasing-out of energy subsidies.
Together, these two subprojects will reduce transmission losses in the country’s power system, reducing annual carbon emissions by 22,584 tonnes of CO2 equivalent. The NWFE programme was launched in 2022, aiming to advance Egypt’s national climate agenda by mobilizing climate finance and private investment in support of the country’s green transition.
H.E. Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation and its Governor at the EBRD, said: “This investment reflects the strength of our strategic partnership with the EBRD and the European Union under Egypt’s NWFE programme, and it also highlights how blended finance can accelerate the country’s green transition. By modernizing our electricity grid and enabling large-scale integration of renewables, we are reducing emissions, increasing efficiency and creating a more resilient energy system.”
H.E. Mahmoud Esmat, Minister of Electricity and Renewable Energy, added: “This strategic investment marks a crucial step in Egypt’s green transition. Modernizing our national electricity grid is foundational to integrating the 22 gigawatts of renewable capacity that is targeted by 2030. It underscores our unwavering commitment to reducing reliance on fossil fuels, enhancing grid stability, and boosting Egypt’s economic competitiveness as a regional hub for green energy and products.”
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the Bank has invested more than 13.8 billion euros across 209 projects in the country.
Source: energy-pedia.com