CAIRO - 10 November 2025: Egypt has concluded a €50 million debt swap agreement with Germany to finance the integration of new wind power stations into the national electricity grid, the Ministry of Electricity confirmed.
The deal will channel the converted debt into grid connection works for major wind energy projects in Ras Ghareb and Jebel Zeit, both located along the Gulf of Suez, one of the region’s most promising wind corridors. The funding will be released in two equal tranches of €25 million and will serve as development financing aimed at expanding Egypt’s renewable energy capacity while reducing reliance on conventional fuel sources.
Minister of Electricity Mahmoud Esmat, who attended the signing alongside representatives from KfW Development Bank and the Egyptian Electricity Transmission Company, said the agreement supports Egypt’s strategic goal of reshaping the national energy mix. Egypt plans to generate more than 42 percent of its electricity from renewable resources by 2030, rising to over 65 percent by 2040, he noted.
Esmat added that Egypt is pursuing a phased modernization of its transmission and distribution networks to transform the national grid into a smart, flexible system capable of accommodating rising clean energy inputs. He highlighted the growing contribution of private developers and international financiers in large-scale wind and solar projects nationwide.
The agreement will enable the connection of the Ras Ghareb and Jebel Zeit wind farms to the national grid, reinforcing Egypt’s broader shift toward low-carbon energy and supporting its commitments under the Paris Agreement and other climate frameworks.
The partnership marks the latest chapter in the longstanding energy cooperation between Egypt and Germany, particularly in efforts that balance economic development with sustainable environmental policy.
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