(MENAFN- Daily News Egypt) Lat December, the European Union announced it green deal of €1tr to turn the European Union into a climate neutral economy by 2050, which mean it will reduce carbon emiion and rely on renewable.
The European Union' financial arm, the European Invetment Bank (EIB), will help achieve thi goal. In November lat year, the Bank approved it new energy lending policy to favour renewable and energy efficiency project. EIB i a leading financier to the energy ector in the world a well a in Egypt.
Daily New Egypt met with Lar Anwandter, Head of the Mahreq at the European Invetment Bank to better undertand the bank' new policy, trategy, and operation and how thi i reflected in Egypt.
The EIB i a key player in the energy financing worldwide, how involved are you in financing project in Egypt?
The promotion of utainable, competitive, and ecure ource of energy i central to economic growth and ocial progre. Thu, it ha been an important ector for EIB financing. In the Southern Neighbourhood countrie energy lending repreent almot 30% of total EIB lending.
The EIB i the world' larget international public bank and over the lat 5 year ha provided more than €50bn in energy invetment worldwide. Lat year, EIB loan helped contruct ome 26,000 km of power line and generate 15,228 MW of electricity, out of which more than 86% of them are from renewable.
About 40 year ago, we financed the Shoubra El Kheima thermal power plant. Thi wa the firt energy project financed by the EIB in Egypt. Since then we have been upporting the priority project of the government. Our upport went to the energy ytem; tranmiion, energy generation -mainly renewable energy-, and energy efficiency. Overall, we provided nearly 4bn of finance to energy project in Egypt.
Let me give you an example of our operation. We are working with the Egyptian government and the Egyptian Electricity Tranmiion Company, to implement a multi-component invetment programme in the Egyptian 220-500 kV tranmiion network, including multiple ubtation and underground cable. The Egyptian Power Tranmiion project i a part of the comprehenive tranmiion network mater plan of the Egyptian Minitry of Electricity.
Thi project will contribute to a reliable electricity upply for the increaing demand of the country, to the integration of new wind energy generation facilitie to the grid, and enabling future interconnection to neighbouring country network.
Another example i the Wind Farm Gulf of Suez project, which EIB igned in 2017 (€115m loan) together with other IFIS (AFD and KfW) and which alo benefit from an EU Grant. Thi renewable energy ource i expected to generate 650 GWh per annum, covering the need of 370,000 uer. It i a good example of quality infratructure, ince high environmental tandard were adhered to protect migratory bird.
The EIB ha a new energy lending policy, can you tell u more about it?
Lat year, the EIB' Board of Director approved a new energy lending policy to achieve the objective of the Pari Agreement and addreing climate change. Approving the future EIB energy lending policy i a critical part of the EU' repone to addreing climate change and trengthening the EIB' role a the EU Climate Bank.
The EIB will continue to upport electricity network with network flexibility, mart grid and interconnection being prioritie.
Can you briefly explain the bank' new policy?
The Bank' new energy policy aim to maximie upport for the clean energy invetment needed to deliver the EU' ambitiou climate goal. EIB energy lending focue on energy efficiency, renewable energy, energy network, a well a related reearch and innovation.
How will thi new policy affect your operation in Egypt?
The tranition toward clean energy and efficient energy ue i an ongoing reality in mot countrie around the world. In the Mediterranean region in general, and In Egypt in particular, energy tranition i proceeding.
In Egypt we financed the renewable energy generation 'Gabel El Zeit Windfarm' and the Wind Farm Gulf of Suez and we are looking into more project in thi direction.
In the Southern Neighbourhood, other example of renewable energy and energy efficiency operation are: the Tafila Wind Farm in Jordan (€72m EIB loan, a firt private financing in the Middle Eat); the Noor Ouarzazate Solar Project in Morocco (€250m EIB loan); and the CVDB Municipal Energy Efficiency Programme in Jordan (EUR 45 m EIB loan, jut igned in October 2019, with 50% energy aving being expected).
Are you looking at financing any project in the ector?
The Bank i looking into priority energy project with different counterpart, focuing on energy efficiency, renewable energy, mart grid, and electricity tranmiion, and ditribution network. We are committed to working with national authoritie, public invetor, and private buinee to enure effective ue of available reource and to unlock ignificant private invetment.
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