Egypt secures €165 million loan for grid upgrade

Egypt, Cairo: Egypt is expected to upgrade its energy infrastructure with a €165 million ($183 million) sovereign loan from the European Bank for Reconstruction and Development (EBRD). The funds are intended for the state-owned Egyptian Electricity Transmission Company (EETC) and aim to enhance the country’s transmission network.

The loan will finance two important projects. It will support the upgrade of a crucial 500 kV substation located in the Cairo governorate. This is essential for maintaining network stability and is directly linked to the completion of the Shoubra El Kheima gas-powered power plant. The initiative forms part of Egypt’s broader Nexus Water, Food & Energy (NWFE) program.

The funding will also be used to construct a 200 km high-voltage overhead transmission line. This will facilitate the transmission of roughly 2.1 GW of renewable energy from the Gulf of Suez region, where several wind energy projects are in development or construction.

The project has passed its final review and is awaiting approval. Decision is expected by September 25, 2024. The upgrades are anticipated to boost Egypt’s capacity to integrate renewable energy and improve the overall reliability of the power grid.