CAIRO – 24 October 2023: Minister of International Cooperation, Rania A. Al-Mashat, spearheaded the inaugural high-level coordination meeting to expedite the mobilization of inventive financing mechanisms for the energy pillar within the Nexus of Water, Food, and Energy platform (NWFE program). The crucial initiative aims to realize the ambitious implementation of renewable energy projects, totaling 10GW, as the nation charts a course towards sustainable energy.
In attendance were esteemed figures such as the Minister of Electricity and Renewable Energy, Mohamed Shaker, and other prominent representatives from global organizations including the European Bank for Reconstruction and Development (EBRD) and the German Federal Ministry for Economic Cooperation and Development.
This strategic gathering, held at the Ministry's headquarters in the New Administrative Capital, served as a preparatory step ahead of COP28, scheduled to take place in the United Arab Emirates. The meeting focused on a comprehensive review of progress since the program's inception, assessing the transition from mere commitments to effective implementation, following the collaborative agreements and pledges initiated during COP27 in Sharm El-Sheikh.
Under the energy pillar, the NWFE program endeavors to leverage innovative financing solutions encompassing grants, debt swaps, technical assistance, credit guarantees, private sector investments, and concessional development funding. The ultimate goal is to facilitate the installation of 10GW of renewable energy projects, with a corresponding plan to phase out 10 thermal power plants, thus propelling Egypt towards its pledge of attaining 42 percent renewable energy by 2030 instead of the previously projected 2035. Estimated investments for these substantial undertakings within the energy sector are projected to reach a staggering $10 billion, with annual fuel expenditure amounting to approximately $1.2 billion, directed towards the operation of thermal power plants.
Minister Al-Mashat emphasized the multifaceted nature of the NWFE program, commending the collaborative efforts of all partners involved, especially in the context of creating a replicable model for other countries aspiring to achieve similar climate goals. She further underscored the program's role in not only facilitating government funding but also unlocking financing opportunities for private enterprises through an array of lending, grants, and debt swap mechanisms.
Shaker shed light on the nation's transition from traditional to renewable energy sources, shedding light on the gradual shift from gas to wind and solar energy. He elucidated on the strategic plans to curb carbon emissions by a notable 17 million tons of carbon dioxide annually, in conjunction with the projected augmentation of renewable energy capacities by approximately 10GW. The minister also highlighted the significant strides made in materializing various agreements and collaborations, ushering in a new era of sustainable energy implementation and development.
He emphasized the pivotal role of the National Green Hydrogen Strategy in harnessing Egypt's competitive advantage within the hydrogen sector, aiming to secure a substantial market share of 5-8 percent globally by 2040. The meeting marked a significant step towards realizing Egypt's commitment to sustainable energy, setting a precedent for a greener and more environmentally conscious future.
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