The European Bank for Reconstruction and Development (EBRD) has agreed to provide a loan of €182.9m loan to the Egyptian Electricity Transmission Company (EETC) to improve the country’s electricity transmission network.
With this new funding, EETC aims to develop a robust electricity grid across Egypt, which would see a reduction in transmission losses and also result in saving 77,000 tonnes of carbon emissions annually.
EBRD’s funds will help EETC to integrate 1.3GW of new renewable energy into Egypt’s electricity system by establishing a new connection from the new renewable energy plants using new or refurbished high-voltage substations.
In addition to EBRD, the project is also backed by its Southern and Eastern Mediterranean (SEMED) Multi-Donor Account. Additionally, the project is expected to receive a grant of €20m from the European Union (EU).
Egypt is expected to see a sharp rise in the demand for electricity over the next decade.
By expanding the electricity distribution and transmission network, the EETC project is expected to help the country in meeting its future electricity demands.
EBRD has also agreed to help and guide EETC and the electricity regulator in designing and developing a regulatory framework for the private-to-private projects.
It will also help in creating a new platform for the growth of the private renewable sector. The project is also expected to support Egypt government’s objective to generate 20% of Egypt’s energy from renewable sources by 2022.