Ministry of Planning, Economic Development, and International Cooperation Announces the Executive Status of Energy pillar Projects Within the Framework of the Country Platform for the "NWFE" Program

⁠⁠$4 billion concessional financing from development partners for the private sector to implement renewable energy projects with a capacity of 4.2 GW.

 

⁠Decommissioning of 1200MW thermal power plants out of total of 5000MW to be decommissioned within the program.

 

⁠Provision of technical support to the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) to develop regulations for the production and sale of power to the private sector through the p2p system

 

The Second Progress Report on the Country Platform for the "NWFE" Program, launched by the Ministry of Planning, Economic Development, and International Cooperation under the patronage of H.E. Dr. Mostafa Madbouly, Prime Minister, featured developments in the implementation of the program's energy pillar projects, which was launched in July 2022, and also witnessed the signing of letters of intent and memorandums of understanding during the COP27 Climate Conference.

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized that the energy projects within the "NWFE" program come in light of the political leadership's directives to expand green transformation projects, support the electricity and renewable energy sector, and achieve a qualitative leap in this vital sector, in order to implement the national strategy for integrated and sustainable energy that aims to maximize the participation of renewable energy in the energy mix to reach 42% in 2030 and 60% by 2040, in partnership and cooperation with the private sector, adding that attention to the energy sector reflects greatly on efforts to achieve economic development and increase investments in various fields.

 

Executive Status of Energy Pillar Projects

 

The report highlighted progress in the implementation of energy projects under the "NWFE" program, which aims to add 10 GW of renewable energy capacity with investments of approximately $10 billion and the gradual phase-out of 5 GW of fossil fuel power generation by 2028, enhance and develop network infrastructure, and support national grid investments to support the national strategy.

 

The report explained that through joint efforts between the Ministry of Planning, Economic Development, and International Cooperation, the European Bank for Reconstruction and Development (EBRD), the main development partner in the energy pillar, along with the Ministry of Electricity and Renewable Energy and relevant national entities,  until the end of last year, power purchase agreements were signed between the Egyptian Electricity Transmission Company with a capacity of 4,2 GW and private sector companies (like ACWA POWER from Saudi Arabia, Masdar, Infinity, SCATEC from Norway, AMEA POWER from the UAE, Orascom, and Hassan Allam Utilities HAU).

 

Efforts have successfully facilitated concessional financing for the private sector amounting to $4 billion from development partners such as the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the African Development Bank (AfDB), British International Investment (BII), OPEC Fund for International Development, Japan International Cooperation Bank (JIBC), Japan International Cooperation Agency (JICA), Green Climate Fund (GCF), and the DEG Foundation of the German Development Bank, and other partners.

 

Additionally, thermal power plants with capacities up to 1,200 MW were decommissioned of the targeted 5,000 MW under the program, alongside securing the necessary funding for the financial closure of seven renewable energy projects (wind/solar).

 

Technical Support for the Energy Sector

 

In a related context, the report noted the provision of technical support for the implementation of projects and the launch of several technical support programs, Among the most important is the enhancement of green supply chains, which will contribute to attracting foreign direct investments, promoting localization of industries related to renewable energy projects, and preparing a master plan for the safe and effective decommissioning of targeted thermal power plants, providing personnel training for workers in the energy sector, in addition to providing support the Electricity Regulatory Authority in establishing regulatory frameworks for energy production and sales to the private sector under the P2P system, conducting studies and technical measurements for wind speeds across the country, launching a strategic environmental assessment for the Gulf of Suez area, and issuing certificates of origin, and finalized agreements for development funds to strengthen the electricity transmission network (control centers/lines/stations/distribution) from development partners such as the European Bank for Reconstruction and Development (EBRD), the French Development Agency (AFD), and the European Union (EU).

 

Supporting the National Electricity Transmission Network

 

The report reviewed efforts to provide concessional development financing from development partners to support the national electricity transmission network. A project to develop the smart grid has been signed with a total value of €53 million, including a €3 million grant, aimed at adding 450 MW to the capacity of the Abis transformer station, relieving loads in the new Abu Qir city, supporting grid stability after the shutdown of low-efficiency power plants, and improving the delivery of renewable energy produced in the Red Sea region to the northern coastal area.

 

Agreements have also been signed for the regional control center project in Alexandria with the French Development Agency valued at €60 million, including €10 million from the EU. In another context, the European Investment Bank made available a EUR 800k grant from the European Union administered by the bank to implement the feasibility study for the Distribution Control Centers Project - Phase III.

 

Developmental impact of energy hub projects

 

The developmental impact of the energy pillar within the Country Platform of the "NWFE" program is reflected in achieving the goals of the national climate change strategy for 2050, aiming for sustainable economic growth and implementing the nationally determined contributions (NDC) plan, by reducing approximately 17 million tons of CO2 emissions annually. Furthermore, it aligns with the sustainable development goals related to clean energy, climate action, and sustainability of local communities. The project contributes to saving $1.2 billion annually that was previously spent on providing fuel necessary for operating these plants.