Egypt has secured US $202m loan from the European Bank for Reconstruction and Development (EBRD) for development of renewable energy projects in the country.
The the state-run Egyptian Electricity Transmission Co (EETC), who will receive the loan said that the funds will help integrate 1.3GW of new renewable energy generation capacity into its grid as it faces the challenge of rising electricity demand.
2035 Integrated Sustainable Energy Strategy
The loan will be used to to refurbish the network and add new high-voltage substations, in part to reduce transmission losses. EBRD will also help the grid operator and Egypt’s electricity regulator develop a regulatory framework to facilitate private energy generation and supply projects.
“The financial support we are being offered is part of broader efforts to back the development of a more resilient and robust electricity grid across Egypt,” said EETC in a statement.
Egypt possesses an abundance of land, sunny weather and high wind speeds, making it a prime location for renewable energy sources. However, the country currently has 750 MW of solar generation capacity. The Government of Egypt is cognizant of the need for a sustainable energy mix to both address increasing demand, and to move to a more environmentally sustainable and diverse electricity sector.
Egypt aims to source 20% of its electricity from renewables by 2022 – and 42% by 2035 – in line with legislation introduced in 2015. The 2035 Integrated Sustainable Energy Strategy, which builds on previous strategies, emphasizes the importance of renewable energy. It aims to provide 14% of wind energy, 2% hydropower and 25% solar energy by 2035. Private sector is expected to deliver most of this capacity.