Description: 

A project for infrastructure development and the scaling up of wind power in Egypt.

Background:

In recent decades, Egypt has seen sustained economic growth. Before the global financial crisis, Egypt experienced a 6.4 percent growth rate in GDP annually. While the global financial crisis had some negative impacts, projections for Egypt’s growth show positive trends in coming years. As Egypt continues to develop, so does its energy demand, and by extension, its contribution to global climate change. Electricity demand is increasing at an annual rate of approximately 8 percent, which equates to an expansion of energy production infrastructure amounting to 2,000 MW per year. Up until now, that demand is being met through increased fossil fuel consumption, causing a correspondent increase in annual emissions by 7 percent since 2000.

To address its growing reliance on fossil fuels, the Government of Egypt has undertaken measures to promote renewable energy production within its borders. Large-scale renewable energy projects have the ability to meet the bulk of Egypt’s future energy demands, with potential wind power resources alone totaling more than 10,000 MW.

Objectives and Outputs:

To support Egypt’s push for enhanced renewable energy production, this project was formed through a partnership between the Government of Egypt, the World Bank Group, and CIF. Begun in late 2010, this project received $140 million in CTF investments, and is expected to complete in 2017.

The project has three components, all of which are based in infrastructure development or capacity building. First, transmission infrastructure must be built to connect future wind power sources with the national grid. This will consist primarily of transmission lines and substations. Second, technical assistance will be provided to support the expansion of Egypt’s wind generation program. Advisory services will be given for legal and financial matters, as well as environmental assessment and knowledge management. The third and final component will be development of a 250 MW wind farm in the Gulf of Suez, which will be serviced by the infrastructure and oversight developed in the previous two components.

Benefits from this project will be dispersed among a number of recipients. While the project’s funding directly benefits renewable energy companies, the project outcomes benefit the nation of Egypt as a whole through development of a domestic source of clean energy production. The completed wind farm will generate 250 MW of renewable energy and establish the infrastructure and support for increased future wind power production. Additionally, greenhouse gas emissions will be reduced by 1.4 Mt CO2e per year, contributing to climate change mitigation and overall climate resilience within Egypt. Finally, the government of Egypt, as well as private companies involved in project development, will benefit from an enhanced capacity to undertake similar projects in the future.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

IBRD Project Portal

Project Details
Project Document | Proposed Decision
Approved on May 7, 2010 (Approved Decision)
Approved amount(s):
USD 150.0 million


Restructuring Paper
Restructuring Notification | Restructuring Document 
Approved on June 11, 2014 (Approved Decision)