EBRD lends €200mn to Egypt to strengthen power grid and green energy shift

The European Bank for Reconstruction and Development (EBRD) has approved €200mn in financing for the Egyptian Electricity Transmission Company (EETC) to support Egypt’s transition toward renewable energy and enhance the stability of its national power grid, according to a statement published on the bank’s website.

The project is expected to play a critical role in strengthening the resilience of Egypt’s electricity network, facilitating the deployment of renewable energy, and advancing the country’s ambition to position itself as a regional centre for green energy production and export.

The EBRD said the funding will be used to upgrade and reinforce electricity transmission infrastructure nationwide, including the development of a 500-kilovolt substation in Cairo Governorate. The bank described the project as a strategic investment aimed at improving grid reliability and enabling the integration of large-scale renewable energy capacity.

The financing is directly linked to Egypt’s plan to phase out the gas-fired Shubra El-Kheima power plant, one of the thermal power stations listed under the energy pillar of the country’s NWFE programme, which seeks to accelerate Egypt’s transition to clean energy.

According to the bank, the investment will also support the construction of a high-voltage transmission line capable of transporting more than 2.1 GW of renewable electricity from the Gulf of Suez. The location is a key hub for wind and solar projects in Egypt.

Launched in 2022, the NWFE programme seeks to advance Egypt’s national climate agenda by mobilising climate finance and private-sector investment to support the country’s green transition. The EBRD serves as Egypt’s lead partner for the programme’s energy pillar, which has also attracted backing from other international development partners, with total pledged support exceeding $500mn.

Egypt’s Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat said the investment indicates the strength of Egypt’s partnership with the EBRD and the EU under the NWFE programme. Electricity and Renewable Energy Minister Mahmoud Esmat said the project is a critical step toward integrating 22GW of renewable capacity by 2030, reducing reliance on fossil fuels and strengthening grid stability. The EU and the EBRD shared a commitment to translating Egypt’s clean-energy ambitions into tangible action by upgrading power systems and expanding renewable integration.