The European Bank for Reconstruction and Development (EBRD) is ready to support Egypt in its quest to decommission 5GW of its obsolete gas-fired power plants in 2023 and finance the construction of new wind farms.
“The EBRD will raise up to $300 million in sovereign financing for projects that include creating an enabling environment to stabilize the Egyptian energy system,” said EBRD’s Heike Harmgart.
“Separately, $1 billion will be allocated for the construction of renewable energy sources, mainly wind farms,” she added.
Egypt is seeking to reduce domestic consumption of produced gas to increase its exports to Europe in the face of high prices and demand caused by Russia’s military intervention in Ukraine.
The country’s authorities expect gas exports to help contain pressure on the Egyptian currency after the war in Ukraine helped reduce dollar inflows from portfolio investment and tourism.
The role of gas will be the subject of heated debate at the November COP27 climate summit in Egypt.
About 3 GW of the planned 10 GW of new renewable energy will come from green hydrogen at Egypt’s Red Sea port of Ain Sokhna, Harmgart said.
Egypt has announced several tenders for green hydrogen and ammonia projects in Ain Sokhna.