Egypt is on the right track towards a green and sustainable energy transition declared an official from the European Bank for Reconstruction and Development (EBRD), as reported by Egypt's official MENA news agency on Friday.

Maya Hennerkes, the EBRD director for green financial systems praised Egypt's Nexus of Water, Food, and Energy Program (NWFE), which is centered on promoting eco-friendly projects aligned with the National Climate Change Strategy 2050 and aims to support Egypt's Vision 2030.

Hennerkes specifically mentioned the country's replacement of old power stations, with a capacity of 5 gigawatts, with renewable energy resources. She emphasized that the switch would place Egypt among the promising countries capable of achieving a successful energy transition.

EBRD, as Egypt's leading partner on the NWFE energy pillar, has pledged substantial financial support, with Managing Director for the Southern and Eastern Mediterranean region, Heike Harmgart, previously announcing €1.3 billion ($1.45 billion) commitment to finance green and renewable energy projects over the next 5 years.

Harmgart highlighted that the EBRD is looking to activate 19 Memorandums of Understanding (MoUs) signed by global companies with the Egyptian private sector aimed at making green hydrogen and green ammonia available for domestic consumption and export.

"We are happy this progress fits into the energy transition program executed by the Egyptian government to establish a lot of wind farms, four of them include green hydrogen production, which could help the country to become a regional hub for exporting energy," she added.

She also revealed that 9 companies have already progressed from the MoUs phase to building framework agreements and are actively conducting feasibility studies and initiating real projects within the Suez Canal Economic Zone (SCZone).

The NWFE energy pillar partnership agreement was signed in November 2022, between the Ministry of Electricity and Renewable Energy, the Ministry of Environment and the Ministry of International Cooperation and the EBRD-led group of development partners ‒ the United Kingdom, Agence Française de Développement, the European Investment Bank (EIB), the African Development Bank, the Asian Infrastructure Investment Bank, Denmark’s Investment Fund for Developing Countries (IFU) and the Netherlands’ Invest International.

Egypt has played a crucial role as a founding member of the EBRD. Since it commenced operations in Egypt in 2012, the EBRD has invested more than €9.8 billion in 152 projects.