Photo courtesy of Egyptian cabinet.
The package marks one of Egypt’s first grid investments under the Egyptian Electricity Transmission Company’s (EETC) wider investment programme within the EBRD-led energy pillar of the Nexus of Water, Food and Energy (NWFE) programme. It includes an EBRD loan of up to 165 million euros, alongside an investment grant of up to 35 million euros from the European Union Neighbourhood Investment Platform (EU NIP).
Investment in the national grid has become increasingly urgent as electricity peak loads rise and Egypt presses ahead with its ambitious renewable energy plans. The financing will enable EETC to reinforce the transmission network by upgrading a 500 kilovolt (kV) substation in Cairo governorate, a move considered vital to maintaining system stability.
The substation upgrade is directly linked to the planned decommissioning of the Shoubra El Kheima gas-fired power plant, one of the thermal facilities scheduled for phase-out under the energy pillar of the NWFE programme.
In parallel, the project will support the construction of a high-voltage overhead transmission line to evacuate more than 2.1 gigawatt (GW) of renewable energy from the Gulf of Suez region, a key hub for wind power. Expanding renewable capacity is expected to help Egypt reduce energy costs and support the gradual phasing out of energy subsidies.
Together, the two sub-projects are expected to reduce transmission losses and cut annual carbon emissions by around 22,584 tonnes of CO₂ equivalent.
Launched in 2022, the NWFE programme aims to advance Egypt’s national climate agenda by mobilising climate finance and private investment to support the green transition. The EBRD is Egypt’s lead partner for the programme’s energy pillar, which has secured pledges exceeding $500 million from international development partners.
Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat said the investment underscored the strength of Egypt’s strategic partnership with the EBRD and the EU under the NWFE framework.
“This reflects how blended finance can accelerate Egypt’s green transition,” Al-Mashat said. “By modernising our electricity grid and enabling large-scale integration of renewables, we are reducing emissions, increasing efficiency, and building a more resilient energy system.”
Minister of Electricity and Renewable Energy Mahmoud Esmat described the deal as a “crucial step” towards integrating the 22 GW of renewable capacity targeted by 2030, stressing Egypt’s commitment to reducing reliance on fossil fuels and enhancing grid stability.
EU Ambassador to Egypt Angelina Eichhorst said the EU-backed transmission project was “powering Egypt’s renewable energy revolution,” adding that further initiatives would deepen the integration of private renewable energy producers into the national grid.
EBRD First Vice President Greg Guyett welcomed the agreement as another milestone in cooperation under the NWFE platform, noting that modernising power systems would help Egypt optimise energy costs and build “the energy system of the future.”
Egypt is a founding member of the EBRD.
Since the bank began operations in the country in 2012, it has invested more than 13.8 billion euros in 209 projects across Egypt.
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