EBRD investments in Egypt estimated to save over 30,718 ktons of CO2 per annum

19 / 09 / 2024

• news
• The New Republic

The European Bank for Reconstruction Development (EBRD) investments in Egypt are estimated to save more than 30,718 ktons of CO2 per annum, equivalent to taking over 6.6 million cars off the road, according to data related to EBRD activities in Egypt between 2013 and 2023 .

EBRD supports the transition towards a greener economy through investments and policy dialogue. For example, the Bank provides finance for the development of wind and solar power projects, including by helping structure appropriate market mechanisms such as feed-in tariffs.

The Bank also provides credit lines via partner banks through Green Economy Financing Facilities (GEFFs), a € 140 million framework co-financed by the European Investment Bank (EIB) and the Agence Française de Développement (AFD). It also seeks to foster positive demonstration effects, particularly with respect to utilizing financial intermediaries to increase energy efficiency and promote small renewable energy investments.

EBRD promotes higher energy efficiency by encouraging energy efficiency and small renewable energy investments through dedicated credit lines to a number of local banks and technical advisory services, such as the EgyptSEFF and GEFF, in addition to enhancing women’s access to green finance and entrepreneurship.

EBRD also worked on helping Egypt realize its high renewable energy potential by providing advice to the Egyptian Electricity Transmission Company on launching and completing competitive renewable energy tenders (for example, for the Kom Ombo renewable power plant) in addition to supporting improvements to the regulatory framework to attract private-sector investment in renewables, reduce reliance on hydrocarbons, and avoid CO2 emissions.

It is also supporting the Egyptian electricity regulator (EgyptERA) in developing the key parameters for opening the market to the private sector, including the ability to sell directly to consumers.

It also contributes to financing the development of renewable energy projects in the region. EBRD helped the government develop a tender for the Kom Ombo solar power plant. The project increased private-sector investment in renewable energy, boosted solar capacity by 200 MW and reduced Egypt’s reliance on hydrocarbons.

EBRD supported the government in developing a contractual framework for renewable energy investments that is both acceptable, commercially viable and fair to investors and sustainable for the public counterparts.

 EBRD investments have helped Egypt to increase electricity produced from renewable energy by 16,933,902 MWh per year.

“The collaboration with the EBRD for financing the Benban project has been a pivotal element in taking the project forward. This partnership assists the socio-economic development of Benban, Egypt, by providing the local population with infrastructure, jobs and skills training. The region has tremendous potential for generating power from natural resources and Alfanar looks forward to working with the EBRD on future renewables projects in solar, wind and biomass.” Jamal Wadi, CEO of Alfanar Energy.