NEWS

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.