Egypt, Germany sign €50M debt swap agreement to boost energy projects
Updated 11/10/2025 8:03:00 AM
Arab Finance: Egypt and Germany signed a €50 million debt-swap agreement to finance energy transition projects and expand solar and wind power plants, according to a statement.
This partnership drives the state's efforts to increase the contribution of renewable energy to the electricity mix, reduce fossil fuel use, limit carbon emissions, and maintain a sustainable environment.
Under the agreement, the funds will be converted into a grant from the German government, disbursed in two equal tranches valued at €25 million each.
The funds will be used to finance two projects connecting the Ras Ghareb and Gabal El Zeit wind farms in the Gulf of Suez to Egypt’s national grid, encouraging the private sector's participation in renewable energy projects.
On his part, Minister of Electricity Mahmoud Esmat outlined that the ongoing work to transform the electricity grid from a conventional network to a smart grid, praising the continued joint efforts to enhance its capabilities and infrastructure.
Esmat also highlighted the focus on the energy mix, diversifying generation sources from renewable energy. This falls under the national strategy's framework, which targets a renewable energy share of over 42% in the energy mix by 2030 and over 65% by 2040.
It is worth noting that Egypt and Germany previously signed two debt swap agreements worth a total of €75 million to strengthen the national grid and enable it to accommodate renewable energy. This is in addition to partially financing the second phase of the hydroelectric power station rehabilitation project and establishing a center for managing distributed energy from renewable sources.
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