NWFE to carry out renewable energy projects with $10B investments

CAIRO – 24 October 2023: Under Egypt's Country Platform for the Nexus of Water, Food, and Energy (NWFE), the country is set to undertake renewable energy projects with a total capacity of 10 gigawatts and investments amounting to $10 billion over the next five years.

This initiative aims to replace 10 thermal power plants, which collectively generate 5 gigawatts of electricity, as outlined in a report by the Ministry of International Cooperation.

The report highlights that the energy component of the NWFE project seeks to achieve an annual cost savings of around $1.2 billion, previously expended on fuel for operating thermal power plants.

To accomplish these objectives, the energy sector within the NWFE program will leverage diverse financing mechanisms, including grants, debt swaps, technical assistance, credit guarantees, risk mitigation, private sector investments, and concessional development financing.

These financial tools will play a crucial role in enabling Egypt to expedite its renewable energy targets, aiming to increase the share of renewable energy to 42 percent by 2030, rather than the originally planned 2035, as part of the updated Nationally Determined Contributions (NDC) plan.

These discussions took place during a meeting convened by the Minister of International Cooperation,  Rania Al Mashat,  to explore innovative financing options for the energy sector under the NWFE Program.

 This high-level coordination meeting also serves as a preparatory step for the upcoming Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in the United Arab Emirates.

The objective is to review the progress made in transitioning from pledges to tangible implementation since the program's launch and the signing of partnership agreements and letters of intent during the COP27 climate conference held in Sharm El-Sheikh.