The European Bank for Reconstruction and Development (EBRD) is financing infrastructure upgrades in Egypt to promote the deployment of new capacity for renewable energy.
The Egyptian Electricity Transmission Company (EETC) will use the € 182.9 million loan to strengthen the country’s transmission network.
The EBRD said the funds would help to incorporate 1.3GW of modern renewable energy into the Egyptian electricity system, leveraging fresh or refurbished high-voltage substations.
The expenditure would also help reduce the loss of electricity, saving 77,000 tons of CO2 emissions per year, added the bank.
The EBRD will also assist the EETC and the electricity regulator in designing and structuring a regulatory framework for private-to-private projects, developing a new channel for private renewable sector growth to further enhance the competitiveness of the sector.
The grid proposal is also backed by the Southern and Eastern Mediterranean Multi-Donor Account of the EBRD –Australia, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Taipei, China and the United Kingdom–and is expected to receive EU support through a grant of € 20 million.
Egypt set a target of 2022 producing 20% of its energy from renewable sources.