The European Bank for Reconstruction and Development (EBRD) is funding grid improvements in Egypt to facilitate the integration of new renewable energy capacity.
The €182.9m loan to the Egyptian Electricity Transmission Company (EETC) will be used to strengthen the transmission network in the country.
EBRD said the funds will help integrate 1.3GW of new renewable energy into the Egyptian electricity system, with the help of new or refurbished high-voltage substations.
The investment will also help to reduce electricity losses, thus saving 77,000 tonnes of CO2 emissions per year, the bank added.
EBRD will also assist EETC and the electricity regulator in designing and structuring a regulatory framework for private-to-private projects, developing a new channel for the growth of the private renewable sector aimed at further improving the sector’s competitiveness.
The grid project is also supported by the EBRD’s Southern and Eastern Mediterranean Multi-Donor Account – Australia, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Taipei China and the UK – and is expected to be supported by the EU through a €20m grant.
Egypt has set a goal to generate 20% of its energy from renewable sources by 2022.