EBRD Backs Egypt’s Green Transition With €200M Financing For Egyptian Electricity Transmission Company To Modernise Grid And Integrate Renewables

The European Bank for Reconstruction and Development is supporting Egypt’s shift toward a greener and more sustainable economy through a €200 million financing package for the Egyptian Electricity Transmission Company. The funding will help modernise and strengthen Egypt’s electricity transmission network as the country expands its renewable energy capacity. This financing is among Egypt’s first major grid investments under a broader investment programme led by EETC and supported through the EBRD-led energy pillar of the Nexus of Water, Food and Energy programme. The package includes an EBRD loan of up to €165 million, complemented by an investment grant of up to €35 million from the European Union Neighbourhood Investment Platform.

Upgrading Egypt’s grid infrastructure has become increasingly important due to rising electricity demand and the need to integrate large volumes of renewable energy in the coming years. The financing will allow EETC to enhance the stability and reliability of the national transmission system, starting with the upgrade of a 500 kV substation in the Cairo governorate. This upgrade is directly linked to the planned decommissioning of the Shoubra El Kheima gas-fired power plant, one of the thermal power plants scheduled for closure under the energy pillar of the NWFE programme.

In addition, the investment will support the construction of a high-voltage overhead transmission line designed to evacuate more than 2.1 GW of renewable energy from the Gulf of Suez region. Strengthening renewable energy integration is expected to lower energy costs and support Egypt’s gradual phase-out of energy subsidies. Together, these two infrastructure projects will reduce transmission losses across Egypt’s power system and are expected to cut annual carbon emissions by approximately 22,584 tonnes of CO₂ equivalent.

The NWFE programme, launched in 2022, aims to advance Egypt’s climate goals by mobilising climate finance and private investment to support the country’s green transition. The EBRD serves as Egypt’s lead partner for the programme’s energy pillar, which has attracted support from several international development partners with combined funding pledges exceeding US$500 million.

Commenting on the investment, Egypt’s Minister of Planning, Economic Development and International Cooperation, Rania A. Al-Mashat, said the financing demonstrates the strength of Egypt’s partnership with the EBRD and the European Union under the NWFE framework. She highlighted the role of blended finance in accelerating the green transition, enabling large-scale resource mobilisation, supporting sustainable economic growth, and helping Egypt meet its climate objectives through a more efficient and resilient electricity system.

Mahmoud Esmat, Minister of Electricity and Renewable Energy, said the investment represents a major step toward modernising Egypt’s national grid and is essential for integrating the 22 GW of renewable energy capacity targeted by 2030. He added that the project reflects Egypt’s commitment to reducing dependence on fossil fuels, improving grid stability, and strengthening the country’s position as a regional hub for green energy and related industries.

Ambassador Angelina Eichhorst, Head of the European Union Delegation to Egypt, said the EU-backed transmission project is helping drive Egypt’s renewable energy transformation by connecting private producers to the grid and building on earlier transmission investments, with further projects planned to support the country’s clean energy future.

Greg Guyett, First Vice President of the EBRD, welcomed the agreement and noted that the project marks another important milestone in cooperation under the NWFE platform. He said modernising Egypt’s power system is a key step toward reducing energy costs and building a future-ready energy infrastructure driven by renewable sources. Egypt has been a founding member of the EBRD, and since the Bank began operations in the country in 2012, it has invested more than €13.8 billion across 209 projects, supporting development across multiple sectors of the economy.