Energy Efficiency Program

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Due to the continued population growth, increasing energy demand is forecast for Egypt. Despite the expansion of generation capacities, energy supply is therefore a challenge in the long term. With Egypt's current energy mix, energy consumption is also associated with high greenhouse gas emissions. One reason for the high energy consumption is the low energy efficiency. Despite great potential, however, investments in energy efficiency have so far largely failed to materialize. The obstacles include subsidized electricity prices, a lack of institutional responsibilities, a lack of enforcement of energy efficiency standards, little experience with energy efficiency projects and a low level of awareness of the benefits and functionality of energy efficiency measures among consumers. This FC module provides for the implementation of energy efficiency measures on the demand side in Egypt in the area of public buildings (universities). This includes planning, procurement, installation and operation of technical components with energy saving potential and the promotion of energy efficiency in the public sector. The FC module is financed through a budget loan of EUR 21 million. The borrower is the Arab Republic of Egypt, represented by the Central Bank of Egypt (CBE). The project sponsor is the university umbrella organization Supreme Council of Universities (SCU). The development policy objective of the measure is to sustainably reduce energy consumption (attributable to the investment measures) while at the same time achieving monetary savings. In addition, the project contributes to reducing CO2 emissions. The project is also intended to send a signal through the implementation of exemplary lighthouse projects (e.g. energy-efficient renovation of university buildings with model character) in the area of demand-side energy efficiency and thus initiate the implementation of further energy efficiency projects. The immediate target group (beneficiaries) are the participating universities. The entire electricity consumer population in Egypt also benefits indirectly (contribution to security of supply). The project also contributes to the implementation of the Egyptian energy strategy up to 2035. The energy strategy is an important cornerstone for the national implementation of the SDGs (SDG 7, SDG 13) as well as the Egyptian NDCs (reduction of energy subsidies, expansion of renewable energies, improvement of energy efficiency).