Egyptian Electricity Transmission Company secures EBRD €183 mln loan
The European Bank for Reconstruction and Development (EBRD) has approved on Tuesday a €182.9 million ($201.6 million) loan to the state-run Egyptian Electricity Transmission Company (EETC).
As part of EBRD’s goal to support the development of a more resilient and robust electricity grid across Egypt, the loan aims to strengthen the transmission network in the country.
Demand for electricity in Egypt is expected to grow significantly over the next 10 years due to economic growth, EBRD statement said.
“The project will address Egypt’s key challenge in reaching its strategic objective in the energy sector by expanding the country’s electricity transmission network.” the statement read.
The EBRD loan will facilitate the integration of 1.3 GW of new renewable energy into the Egyptian electricity system by connecting new renewable energy plants, with the help of new or refurbished high-voltage substations. It will also help in reducing electricity losses, thus saving 77,000 tonnes of CO2 emissions per year.
The bank 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, which will further improve the sector’s competitiveness.
This is linked to the electricity law that was passed in Egypt in 2015, which sets out a roadmap for the liberalisation and reform of the power sector. The law is driven by the government’s aim to generate 20 percent of Egypt’s energy from renewable sources by 2022.
This project is also supported by the EBRD’s Southern and Eastern Mediterranean (SEMED) Multi-Donor Account (Australia, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Taipei China and the United Kingdom). It is expected to be also supported by the European Union through a €20 million grant, EBRD statement added.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the bank has invested over €5.5 billion in 102 projects in the country. In 2018, Egypt was the largest economy in which the EBRD invests, in terms of new commitments.