The Egyptian government is nearing the completion of negotiations with the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) to secure funding of up to €200 million for the development of a new electricity transmission line in the Gebel El-Zeit region. This was revealed by an anonymous source in an interview with Asharq.
The official disclosed that the funding package would be divided into a €165 million soft loan and a €35 million grant from the EU, which will be allocated to the state-owned Egyptian Electricity Transmission Company (EETC) for the construction of a major overhead power line to transmit electricity generated from wind energy projects in Gebel El-Zeit. The project is expected to stretch across 198 kilometers, with an anticipated completion timeline of one year.
The Egyptian Electricity Transmission Company, the sole entity in Egypt responsible for transmitting electrical power, purchasing electricity from both state-owned and private electricity producers, and selling it to state-run distribution companies, will oversee the construction and operation of this strategic infrastructure. Additionally, EETC is in charge of all electricity interconnection projects between Egypt and other countries.
This deal is part of a broader partnership between Egypt and the EU, which began earlier last year when Egypt signed a strategic partnership agreement with the European Union valued at €7.4 billion. These funds are being provided through grants and loans, with disbursements expected to continue until the end of 2027. In a January interview with Asharq, Egypt’s Minister of Planning and Economic Development, Rania Al-Mashat, revealed that Egypt is set to begin negotiations with the EU in April for further financing to the tune of €4 billion to support its national budget.
The new power line is seen as a significant step toward strengthening Egypt’s renewable energy infrastructure, particularly in harnessing the potential of its wind resources. Gebel El-Zeit, located on the Red Sea coast, is home to some of Egypt’s largest and most ambitious wind energy projects, which are expected to play a key role in the country’s efforts to diversify its energy mix and reduce carbon emissions.
This initiative not only demonstrates Egypt’s growing role as a regional leader in renewable energy but also highlights the increasing cooperation between Egypt and international financial institutions to advance sustainable infrastructure and economic growth.
