In its continued efforts to accelerate clean energy, the Egyptian government has signed a $57.8 million (€50 million) deal with Germany to finance two wind farm grid connection projects in Ras Ghareb and Jebel Zeit, in the Gulf of Suez.
The initiative closely follows the launch of two other major renewable energy projects; a 200 MW solar power plant and 120 MWh connected battery storage facility. These projects were launched by the country’s Ministry of Electricity and Renewable Energy and the Egyptian Electricity Transmission Company.
According to the nation’s State Information Service, the signing took place on Sunday, and was attended by minister of electricity and renewable energy, Mahmoud Esmat, along with Luise Dietrich, portfolio manager for Energy for North Africa at KfW Development Bank, and Mona Rizk, chairwoman of the Egyptian Electricity Transmission Company.
This comes as United Nations Sustainable Development Group notes that the continent demonstrates strong leadership in the utilisation of renewable energy, with 55.5% of its total final energy consumption coming from renewable sources based on recent data. This trend outpaces Europe (15.3%), Northern America (12.4%), and Asia (16.8%).
The agreement is part of long-standing bilateral cooperation and converts part of Egypt’s debt to Germany into a grant, to be disbursed in two equal tranches of $28.9 million (€25 million). It aims to support the cutting of carbon emissions and to encourage private sector participation in clean energy projects.
Esmat further solidified the North African country’s strategy to diversify its electricity mix and increase renewable energy’s contribution to over 40% by 2030 and more than 60% by 2040.
Egypt will continue efforts to upgrade the national grid into a smart grid capable of accommodating new clean energy capacities, he noted.
The minister also highlighted the private sector’s key role in the nation’s renewable energy sector and the government’s commitment to providing sustainable, low-cost, and environmentally friendly energy.
“The funds will be used to connect the two wind farms to Egypt’s national electricity grid, supporting the country’s broader energy transition and climate goals,” reads a statement from Egypt’s State Information Service.
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