Egypt’s Environment min., 10 firms on Forbes list of Middle East’s Sustainability Leaders 2024
Egypt’s Environment Minister Yasmine Fouad was placed on the Forbes list of Middle East’s Sustainability ...
Egypt among 4 successful case studies cited by WEF Playbook of Solutions to Mobilize Clean Energy Investment
Egypt came among four successful case studies cited by the Playbook of Solutions to Mobilize Clean Energy Investment in Global South of the World Economic Forum (WEF) – out in October 2024.
The playbook highlighted Egypt, Brazil, India and Chile as successful models within the framework of effective financing country platforms and integrated national approaches to understand how leading countries have successfully created the conditions for clean energy investment.
Egypt has created an enabling environment for clean energy investment through a comprehensive approach using multiple levers. Clear deployment targets for renewable energy (RE), detailed by technology, were first outlined in the 2016 Integrated & Sustainable Energy Strategy for 2035, further consolidated in the 2022 National Climate Change Strategy for Egypt, and recently strengthened as part of the National Determined Contribution update, pushing for 42% renewable electricity generation by 2030.
These plans have increased Egypt’s attractiveness for clean energy investments. The 2014 Renewable Energy Law clarified the regulatory framework; therefore substantially enhancing investors’ confidence in the nation. Lastly, financial packages, such as the 2017 Renewable Energy Financing Framework, the $550 million national green bonds, and the $113 million debt swap with Germany were key in securing funding for the country’s clean energy transition.
Egypt’s Country Platform:
To accelerate the mobilization of private investment and ensure alignment between national priorities and international investment, Egypt announced in 2022 the creation of Egypt’s Country Platform for the Nexus of Water, Food and Energy (NWFE).
The Platform embodies the just financing principles of country ownership outlined in the Sharm El Sheikh Guidebook for Just Financing. In line with the National Climate Strategy, it aims to move from pledges to implementation through the design, structuring, and preparation of concrete and implementable climate action projects. The platform identifies a set of 9 high priority projects that balance adaptation, resilience and mitigation, bundled around three main pillars: Water, Food, and Energy.
By leveraging technical cooperation and financing from over 30 stakeholders, the platform taps into diverse capital sources and de-risking measures, encompassing debt swaps, guarantees, concessional loans, grants, and private investments. On the Energy pillar front, the platform aims to mobilize $ 10 billion investment for the energy sector with the support of $ 500 million concessional finance, anchored around 3 components: (1) decommissioning of 5GW of Fossil Fuel Plants securing grants based on performance incentive payment, (2) installing 10GW wind and solar capacities through partnerships and private sector investments and (3) the rehabilitation of the National electricity grid including the development of storage facilities.
To further accelerate its ambitious targets, the Egyptian government has allocated land in the East Nile, West Nile and Southern Egypt areas for private developers, enabling the construction of wind and solar capacity for private-to-private (P2P) projects.
Between 2014 and 2021, Egypt’s electricity generated from Wind and Solar have been multiplied by respectively 3 and 19. In 2023, only a year after its launch, the NWFE platform had mobilized $2.18 billion of private sector investments, to finance solar and wind energy projects, with 4 renewable projects reaching financial close for 1.7GW.
اترك تعليقا