ERBD to fund transmission line for 2.1GW of Egypt wind power
ERBD to fund transmission line for 2.1GW of Egypt wind power | Windpower Monthly
Construction of a 200km high-voltage overhead transmission line (OHL) and upgrade of a 500kV high-voltage substation will require total financing of €200 million, split between the EBRD loan of €165 million and EU grants of €35 million – both subject to approvals.
Up to €120 million of the blended facilities (60% of total financing) will be used to finance the OHL, with the remaining €80 million to be used to upgrade the substation.
Once constructed, the 200km high-voltage OHL will relay the output of 2.1GW of renewable energy capacity from the Gulf of Suez region, where several wind projects are under development. EBRD noted in the official project documents published on 12 October that this portion of the loan would qualify as Green Energy Transition (GET) finance.
Upgrading a 500kV substation in the Cairo’s city government is considered “crucial for the stability of the network”, following the closing of the Shoubra El Kheima gas-powered power plant under the energy pillar of Egypt's Nexus Water, Food & Energy (NWFE) initiative.
Approval of the EBRD loan is expected on 13 December 2023.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”