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- One of first grid investments under energy pillar of Egypt’s NWFE programme
- Financing includes European Union support
- Project will reduce annual carbon emissions by 22,584 tonnes of CO2 equivalent
The European Bank for Reconstruction and Development (EBRD) is supporting Egypt’s transition to a green economy with a €200 million financing package for the Egyptian Electricity Transmission Company (EETC).
This financing package is one of the country’s first grid investments as part of a wider EETC investment programme under the EBRD-led energy pillar of Egypt’s Nexus of Water, Food and Energy (NWFE) programme. It consists of an EBRD loan of up to €165 million, supported by an investment grant from the European Union Neighbourhood Investment Platform (EU NIP) of up to €35 million.
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 kV 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 GW 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 mobilising climate finance and private investment in support of the country’s green transition. The EBRD is Egypt’s lead partner on the programme’s energy pillar, which has also secured support from other international development partners, with pledges totalling more than US$ 500 million.
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. Leveraging blended finance through the NWFE platform also allows Egypt to mobilise resources at scale and drive sustainable economic growth while advancing our climate goals. By modernising 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, mobilised through the NWFE programme and our partners at the EBRD and the EU, marks a crucial step in Egypt’s green transition. Modernising our national electricity grid is foundational to integrating the 22 GW 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.”
Ambassador Angelina Eichhorst, Head of the European Union Delegation to Egypt, said: “This EU backed transmission project is powering Egypt’s renewable energy revolution. Building on the first project’s 800 km of lines and substations, this second initiative links private producers to the grid – and with a bigger third project ahead, Egypt’s clean energy future is unstoppable.”
Greg Guyett, the EBRD’s First Vice President, welcomed the partnership, saying: “Signing this strategic investment under the NWFE platform is another successful milestone in our cooperation. As Egypt’s lead partner on the platform’s energy pillar, I am proud to see our shared vision translate into real action. By modernising power systems to advance renewable energy, Egypt is taking bold steps towards optimising energy costs through developing the energy system of the future.”
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 across 209 projects in the country.