Egypt and the European Union have sealed a major renewable energy financing package worth up to €690 million to upgrade and expand Egypt’s electricity transmission network, as part of a broader push to position the country as a leading clean energy hub in North Africa and the wider Mediterranean region.
The package comprises a €600 million loan from EIB Global — the development financing arm of the European Investment Bank — alongside grants of up to €90 million provided directly by the European Commission. The investment is structured to cover approximately 44 percent of the total programme cost, with the remainder to be funded by the Egyptian Electricity Transmission Company (EETC), which will lead implementation.
The grid upgrade programme aims to integrate approximately 22 gigawatts of renewable energy capacity into Egypt’s national electricity system by 2030 — enough to meet the needs of nearly 10 million households. It includes the construction of new substations and the installation of advanced high-voltage transmission lines to bring solar and wind power generated in the Red Sea and Gulf of Suez regions into the main grid.
The investments are expected to reduce transmission losses, improve the reliability of electricity supply, and strengthen energy security. They also serve Egypt’s ambition to become a regional electricity export hub by developing the infrastructure needed to transfer clean power to neighbouring markets and into Europe.
The programme forms part of the EU-Egypt Strategic and Comprehensive Partnership and builds on a wider pipeline of EU-backed energy investments in the country, including the Obelisk solar photovoltaic plant with battery storage, financed by the EIB, as well as ongoing renewable and energy efficiency initiatives supported through the NWFE platform and the Green Economy Financing Facility.
Source: egyptoil-gas.com