Egypt and Germany signed a €50 million debt swap agreement on Sunday to finance two wind farm grid connection projects in Ras Ghareb and Jebel Zeit in the Gulf of Suez, the Egyptian ministry of electricity said. The agreement, part of longstanding bilateral cooperation, converts part of Egypt's debt to Germany into a grant, to be disbursed in two equal tranches of €25 million. It aims to support Egypt's renewable energy expansion, reduce fossil fuel use, cut carbon emissions, and encourage private sector participation in clean energy projects. The signing ceremony was attended by Electricity Minister Mahmoud Esmat along with Luise Dietrich, Portfolio Manager Energy for North Africa at KfW Development Bank, and Mona Rizk, Chairwoman of the Egyptian Electricity Transmission Company. Esmat said the projects are part of Egypt's strategy to diversify its electricity mix and increase renewable energy's contribution to over 42 per cent by 2030 and more than 65 per cent by 2040. Egypt will continue efforts to upgrade the national grid into a smart grid capable of accommodating new clean energy capacities, he added. The minister also highlighted the private sector's key role in Egypt's renewable energy sector and the government's commitment to providing sustainable, low-cost, and environmentally friendly energy. The funds will be used to connect the two wind farms to Egypt's national electricity grid, supporting the country's broader energy transition and climate goals. Attribution: Amwal Al Ghad English
