H.E. Dr. Rania Al-Mashat:
● The Abydos Solar Power Station is a new success story that adds to Egypt's growing renewable energy capabilities.
● Launching renewable energy plants with a capacity of 10 GW as part of the NWFE program until 2028.
● Blended finance mechanisms within the NWFE program boost private sector involvement in implementing the national sustainable energy strategy.
● $4.5 billion in concessional financing for the private sector to add 4.7 GW of renewable energy capacity since 2022.
Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in the inauguration ceremony of the Abydos 1 Solar Power Plant project in Aswan, one of the energy projects under the NWFE program, with a capacity of 560 MW added to Egypt’s energy generation capabilities. The ceremony was attended by Dr. Mostafa Madbouly, Prime Minister, Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, Engineer Karim Badawi, Minister of Petroleum and Mineral Resources, Governor Ismail Kamal of Aswan, and representatives of AMEA Power, a subsidiary of the UAE-based Al Nowais Company.
In her speech, Dr. Rania Al-Mashat stated that the Abydos plant is one of the most important energy projects under the NWFE program, implemented by the private sector represented by AMEA Power, a subsidiary of Al Nowais UAE, funded by our partners from the International Finance Corporation (IFC), Japan International Cooperation Agency (JICA), and the Dutch Development Bank (FMO). She emphasized that this project reflects the high confidence foreign investors have in Egypt as a leading country in the Middle East in the field of renewable energy, possessing significant potential and resources for renewable energy.
She explained that the national platform for the NWFE program was launched in 2022 as a national program that serves as a regional and international model for addressing climate change adaptation and mitigation issues. It contributes to implementing the National Climate Change Strategy 2050. The energy sector aims to decommission thermal power plants with a capacity of 5 GW and stimulate investments worth $10 billion to establish renewable energy projects with a capacity of 10 GW from 2023 to 2028, in close partnership with the local and foreign private sectors, achieving the goals of the National Climate Change Strategy and implementing nationally determined contributions to reach 42% renewable energy of the total by 2030.
She further explained that the national "NWFE" platform was launched in 2022 as a national initiative to create an effective regional and international model for addressing climate change adaptation and mitigation. The platform contributes to the implementation of the National Climate Change Strategy 2050. She pointed out that the energy sector aims to decommission 5 gigawatts of thermal power plants and stimulate investments of $10 billion to launch renewable energy projects with a combined capacity of 10 gigawatts from 2023 to 2028. This will be done in close partnership with domestic and international private sector stakeholders to meet the goals of Egypt's National Climate Change Strategy and achieve the nationally determined contributions (NDCs) to reach 42% renewable energy in the total energy mix by 2030.
She noted that these efforts will reduce carbon dioxide emissions by about 17 million tons annually and save $1.2 billion annually, which is currently spent on fuel needed to operate thermal power plants.
Dr. Al-Mashat added that efforts with multilateral and bilateral development partners since 2022 have resulted in concessional financing for the private sector, exceeding $4.5 billion, to implement projects with a capacity of 4.7 GW within the NWFE program. This is based on an innovative approach that combines blended finance, technical support, leveraging each development partner’s comparative advantage, and collaborating with international climate alliances, particularly the Glasgow Financial Alliance (GFANZ).
She emphasized that the rapid developments in increasing Egypt’s renewable energy capacity are the fruits of structural and legislative reforms, as well as infrastructure preparations since 2014, which have enhanced its capabilities to become a regional hub for renewable energy. This has enabled Egypt to meet domestic energy needs and export energy to neighboring countries through cross-border projects.
She also mentioned international recognition of the NWFE program, including a joint statement by 12 multilateral development banks during COP29 on the importance of national platforms for climate action, praising the NWFE program as a model for such platforms that promote green investment strategies.
Moreover, she highlighted that through ongoing efforts and international partnerships, the Ministry of Planning, Economic Development, and International Cooperation is implementing national strategies with international partners, increasing private sector financing. The ministry has also raised investment spending on the electricity sector in the current fiscal year’s development plan to take advantage of renewable energy to enhance grid capacity and ensure stable power supply during the summer, reflecting the integration of investment spending from the development plan and development financing to support climate action and the green transition.
It is worth noting that this project is the result of fruitful cooperation over the past two years, starting with the signing of financial closure agreements in November 2022, in the presence of the Prime Minister. During that time, we also witnessed the signing of the Amoun Wind Farm project in Ras Gharib, in the Red Sea, with a production capacity exceeding 1 GW, and investments exceeding $1.1 billion from development partners for AMEA Power.