Arab Finance: The European Bank for Reconstruction and Development (EBRD) announced a €200 million financing package for the Egyptian Electricity Transmission Company (EETC) to accelerate Egypt’s transition to a green economy, according to a press release.

This package is one of the country’s first grid investments as part of a wider EETC investment program under the EBRD-led energy pillar of Egypt’s Nexus of Water, Food, and Energy (NWFE) initiative.

The financing consists of an EBRD loan of up to €165 million, in addition to an investment grant from the European Union Neighborhood Investment Platform (EU NIP) of up to €35 million.

Meanwhile, the investments will allow EETC to bolster the country’s electricity transmission grid by upgrading a 500 kilovolt (kV) substation in the Cairo governorate.

It 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 program.

The investment will also be used to establish a high-voltage overhead transmission line to evacuate more than 2.1 gigawatt (GW) of renewable energy from the Gulf of Suez region.

Advancing renewable energy in Egypt will enable the state to reduce energy costs and facilitate the planned phasing-out of energy subsidies.

In this regard, the two projects will reduce transmission losses in Egypt’s power system, cutting annual carbon emissions by 22,584 tons of CO2 equivalent.

Launched in 2022, the NWFE program aims to advance Egypt’s national climate agenda by mobilizing climate finance and private investment in support of the country’s green transition.

EBRD is Egypt’s lead partner on the program’s energy pillar, which has also received support from other global development partners, with pledges exceeding $500 million.

Rania El-Mashat, Minister of Planning, Economic Development, and International Cooperation, indicated: “Leveraging blended finance through the NWFE platform also allows Egypt to mobilize resources at scale and drive sustainable economic growth while advancing our climate goals.”

“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,” she highlighted.

For his part, Mahmoud Esmat, Minister of Electricity and Renewable Energy, commented: “Modernizing our national electricity grid is foundational to integrating the 22 GW of renewable capacity that is targeted by 2030.”

He added: “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.”

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 kilometers 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.”

Since its operations began in Egypt in 2012, EBRD has invested over €13.8 billion in 209 projects.

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