130218_Luxor-Egypt SECAP Final

Financing the SECAP
The Governorate should identify all of the potential funding sources for the investments to be made within
the framework of the SECAP. One of the principle issues for a successful strategy is the Governorate’s ability
to finance ambitious energy management and renewable energy projects. The traditional systems of public
and private funding may not be able to adapt to the new projects that come out of the SECAP. As a result,
new and innovative finance mechanisms will be needed. It will be necessary to innovate by mixing loans,
subsidies, third party financing, cooperative solutions and private funds, etc.
Guaranteeing the funding of the SECAP’s actions is the most critical step. The Governorate cannot finance
the entirety of its SECAP from its annual budget and will have to turn towards external funding at the national
and international level. There are additional benefits to attracting external funding, including:
• The involvement of various actors in the SECAP’s implementation helps to create a local, or even
regional, sustainable energy market where actors can participate as suppliers, installers or users;
• The engagement of local actors is a gage for the socio-economic integration of sustainable energy;
• The cooperation with international backers gives more visibility to local actions and attracts greater
investment and funding in case of success. It also encourages local deciders to support the projects
and actions undertaken in the framework of the SECAP.
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