Construction of a 200km high-voltage overhead transmission line (OHL) and upgrade of a 500kV high-voltage substation will require total financing of €200 million, split between the EBRD loan of €165 million and EU grants of €35 million – both subject to approvals.
Up to €120 million of the blended facilities (60% of total financing) will be used to finance the OHL, with the remaining €80 million to be used to upgrade the substation.
Once constructed, the 200km high-voltage OHL will relay the output of 2.1GW of renewable energy capacity from the Gulf of Suez region, where several wind projects are under development. EBRD noted in the official project documents published on 12 October that this portion of the loan would qualify as Green Energy Transition (GET) finance.
Upgrading a 500kV substation in the Cairo’s city government is considered “crucial for the stability of the network”, following the closing of the Shoubra El Kheima gas-powered power plant under the energy pillar of Egypt's Nexus Water, Food & Energy (NWFE) initiative.
Approval of the EBRD loan is expected on 13 December 2023.
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