EBRD Leads $566 Million Financing for Egypt's Largest Solar Project
The European Bank for Reconstruction and Development is leading a $566 million financing package to build a 1.2 GW solar plant and a 600 MWh battery system in Minya.
The European Bank for Reconstruction and Development (EBRD) is arranging a syndicated loan of up to $265 million for Nefer Minya Renewable Energy, as part of a total financing package of up to $566 million, to construct a 1.2 GW solar plant and a 600 MWh battery storage system in Minya Governorate.
The plant represents the largest solar photovoltaic project in Egypt and Africa. It is owned by Infinity Power and HAU Energy, with co-financing from Germany's DEG, the Netherlands' FMO, and France's Proparco. The loan comprises $160 million from EBRD funds, $75 million from Bank of Jordan, and up to $30 million in concessional financing from the Clean Technology Fund of the Climate Investment Funds.
The project will sell electricity to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement. The battery system will store solar power generated during the day for use during peak demand after sunset, enhancing grid stability and making the project one of the first in Egypt to combine utility-scale solar generation with battery storage.
Aida Sitdikova, EBRD Director for Sustainable Infrastructure for the Middle East and Africa, stated that the project enhances energy security and grid capability and supports the transition to a low-carbon economy. The financing is accompanied by a green skills development program for youth in Minya, while the Clean Technology Fund supports the development of HR policies at Hassan Allam Utilities and promotes gender equality and women's access to technical and leadership roles in the energy sector.
What do these terms mean?
Solar Photovoltaics: A technology that converts sunlight into electricity through solar cells mounted in panels.
Battery Energy Storage System: A system that stores surplus electricity for later use, helping balance supply and demand on the grid.
Power Purchase Agreement: A long-term contract under which a designated buyer commits to purchasing electricity generated by the project at an agreed price.
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