European Bank Leads $566 Million Financing for Solar Plant in Minya

The European Bank for Reconstruction and Development said it is arranging a loan of up to $265 million for Nefer Menya for Renewable Energy to develop a 1.2 GW solar plant and a 600 MWh battery system in Minya Governorate.

The loan consists of $160 million from the bank's own funds, $75 million from a loan provided by Bank of Jordan, and up to $30 million in concessional financing from the Clean Technology Fund under the Climate Investment Funds. German investment institution DEG, Dutch development bank FMO, and French institution Proparco are participating in total financing of up to $566 million.

The capacity is 1,000 MW AC and the total cost of the project is $764 million, according to the bank's disclosure. Infinity Power owns 51% of the project and Hau Energy owns 49%, with electricity set to be sold to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement.

The system stores electricity generated during the day for use during peak demand after sunset, and the EBRD said the project was one of the first in Egypt to combine utility-scale solar energy with batteries. The Cabinet granted the project a golden license in August, aiming for completion in September 2027, according to a report by Ahram Online.

What do these terms mean?

Power Purchase Agreement: A long-term contract under which an electricity producer sells its output to a specific company or entity at an agreed price, providing the project with stable revenues that help secure financing.

Concessional Financing: A loan or grant with better-than-market terms, such as lower interest rates or longer repayment periods, typically provided by development and climate institutions.

Golden License: A government approval granting the project facilities and streamlined procedures to accelerate licensing and implementation.

Megawatt-hour: A unit measuring the amount of stored or consumed energy. A 600 MWh battery can store 600 MW of power for one hour.