Rania Al-Mashat, Minister of International Cooperation, led the inaugural high-level coordination meeting at the Ministry’s headquarters in the New Administrative Capital to explore innovative financing methods for the energy sector as part of the NWFE Programme.
The NWFE Programme’s goal is to execute renewable energy projects with a combined capacity of 10 gigawatts, replacing 10 thermal power plants with a capacity of 5 gigawatts.
The gathering was organized in preparation for the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in the United Arab Emirates, where Egypt will showcase its progress in meeting its commitments made at the COP27 climate conference in Sharm El-Sheikh.
The energy sector, under the Programme, is set to leverage a range of financing solutions, including grants, debt swaps, technical assistance, credit guarantees, risk mitigation, private sector investments, and concessional development financing. These measures will assist Egypt in reaching its objective of raising the share of renewable energy to 42% by 2030, instead of the original target of 2035, as outlined in its updated Nationally Determined Contributions (NDC) plan. Egypt is also executing the national strategy for sustainable and integrated energy, which necessitates around $10 billion in investments in the energy sector over five years.
This initiative aligns with the National Climate Change Strategy to accomplish sustainable economic growth and reduce carbon emissions. Additionally, it aligns with the Sustainable Development Goals pertaining to clean energy, climate action, and the development of local communities. The project is expected to save around $1.2 billion annually, previously spent on fuel to operate thermal power plants.
Minister Al-Mashat highlighted the significance of the NWFE Programme as an integrated platform for climate and development initiatives. Egypt’s partners, including Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, played a role in promoting the platform globally and making it one of the recognized national platforms for development partners.
During COP27, a joint political declaration was issued between Egypt, the United States, and Germany, committing to supporting the energy sector under this Programme. The declaration included key points, such as updating Egypt’s NDCs and advancing the target date for increasing the percentage of renewable energy to 42% by 2030 instead of 2035.
Egypt has already fulfilled this commitment, even amid global challenges and economic fluctuations, having updated its NDCs last June.
Al-Mashat also pointed out that the political declaration included Germany’s commitment to implement new tranches of debt swaps for development directed to the energy sector of the Programme. A tranche worth €54 million has already been signed as a result of updating NDCs, out of €104 million pledged by Germany to fund two wind farms with a capacity of 500 megawatts. This will assist Egypt in achieving its goal of producing 42% of its electricity from renewable sources by 2030.
The Minister of International Cooperation emphasized that the NWFE Programme not only promotes Egypt’s transition to a green economy through renewable energy but also green hydrogen. The platform expands its work to achieve Egypt’s goal of becoming a regional hub for renewable energy. She concluded by emphasizing Egypt’s strong commitment to the green transition.