Egypt and Germany have signed a €50 million debt swap agreement to finance grid connection works for two major wind power projects in Ras Ghareb and Jebel Zeit in the Gulf of Suez, the Ministry of Electricity announced.
The agreement converts part of Egypt’s outstanding debt to Germany into a development grant and will be disbursed in two tranches of €25 million each. The funds will support Egypt’s renewable energy expansion plans, reduce reliance on fossil fuels, lower carbon emissions, and encourage greater private sector involvement in clean energy generation.
The signing ceremony was attended by Minister of Electricity Mahmoud Esmat, KfW Development Bank Portfolio Manager for North Africa Luise Dietrich, and Chairwoman of the Egyptian Electricity Transmission Company Mona Rizk.
Esmat stated that the projects align with Egypt’s long-term energy strategy to diversify the electricity mix and raise the share of renewable energy to more than 42 percent by 2030 and over 65 percent by 2040. He noted that the government is working to modernize the national electricity grid and transition it into a smart grid capable of integrating increasing volumes of clean energy.
The minister emphasized the growing role of the private sector in the wind and solar industries, adding that Egypt is committed to providing reliable, affordable, and environmentally sustainable electricity to support economic competitiveness and climate goals.
The agreement will enable the connection of the Ras Ghareb and Jebel Zeit wind farms to the national grid, contributing to Egypt’s broader energy transition and its commitments under international climate frameworks.
