As the cost of energy in Egypt continues to skyrocket, multiple European financial institutions gathered at a corporate event to set in motion a new Green Economy Financing Facility (GEFF), according to Daily News Egypt. The GEFF, which was officially launched on Tuesday, seeks to provide €140 million in financial support for private companies to invest in small-scale renewable energy projects in an effort to promote self-sufficient energy and reduce dependence on petroleum products.
The European Bank for Reconstruction and Development (EBRD), the Agence Française de Développement (AFD), the European Investment Bank (EIB), and the European Union (EU) were all in attendance and have collaborated with the National Bank of Kuwait-Egypt and Qatar National Bank to solidify the projects on ground.
In addition to the loans, companies will receive technical support and incentives to successfully implement renewable energy technology, and will be encouraging other workplaces to follow suit and invest in a more green economy.
“The programme is aimed at small and medium enterprises (SMEs), not large industrial innovators. We target private sector companies working in all sectors of the economy,” said Janet Heckman at the event, ERBD managing director.
On February, the EBRD released their strategy for renewable energy development in Egypt, in which the bank will look to finance renewable energy projects and energy efficiency investments, including energy efficiency credit lines for SMEs, in addition to water efficiency through modernising water supply and wastewater management.
In November 2016, the EBRD and the Union of the Mediterranean (UfM) launched the Private Renewable Energy Framework (SPREF), a €227.5 million financing framework, which was presented during the EU Energy Day at the COP22 international climate conference in Marrakesh. The effort was undertaken to help reduce Tunisia's, Morocco's, and Egypt's dependence on fossil fuels.
Egypt embarked on an effort to diversify its sources of energy with the hopes of making renewable energy 20% of Egypt's energy portfolio, however, with the foreign currency shortage Egypt was unable to import the expensive technology and parts required for the green energy revolution. The government announced a tariff to help support renewable energy in the country, however, companies have asked for a higher tariff to compensate for rising costs of the programme. Egypt exists in one of the most efficient regions in the world for green energy harvesting.