Egypt and Germany sign debt swap agreement to finance green energy transition

Signing from the Egyptian side was the Ministry of International Cooperation, Ministry of Electricity and Renewable Energy and the Central Bank of Egypt.

Under the agreement, Egypt will be exempted from repaying debts amounting to €54 million and will direct the amount into new green projects.

The debt swap will help the Egyptian government achieve its goal of producing 42 percent of its electricity from renewable sources by 2030.

"The purpose of the project is to develop a transmission network for integrating renewable energies into the electricity grid and enhancing its capacity," the embassy said.

They pointed specifically to the construction of two sub-stations and the connection of two wind farms (Amunet and Red Sea Wind Farm) with a capacity of 500 megawatts each to the national transmission network.