Renewables
EBRD backs major solar and storage project in Egypt
The European Bank for Reconstruction and Development is organising syndication loans for a massive solar and battery facility in Egypt.
Key points
- The project features 1.2GW of solar capacity paired with a 600MWh battery energy storage system.
- Total debt funding reaches up to $566m, with the EBRD providing a direct $160m loan.
- The installation is designed to supply power to over 1.4 million homes.
What happened
Power Technology reported that financial backing is being secured for the construction of the Nefer Minya solar and energy storage installation in Egypt. The development includes a 1.2GW photovoltaic generation facility integrated with a 600MWh battery energy storage system.
Syndicated financing arranged by the European Bank for Reconstruction and Development totals up to $265m. This package incorporates a $160m loan from the institution's own capital, $75m mobilised via the Bank of Jordan, and up to $30m in concessional funding through the Clean Technology Fund. Overall debt commitments for the initiative reach up to $566m, backed by additional institutions including Germany's DEG, France's Proparco, and the Dutch Entrepreneurial Development Bank.
Ownership of the special purpose vehicle managing the site rests with Infinity Power and Hassan Allam Utilities Energy. Output from the plant will be delivered to the Egyptian Electricity Transmission Company under the terms of a 25-year power purchase agreement.
Project scale and objectives
Operations at the site will combine daytime generation with battery storage to manage peak evening demand and maintain grid stability. Project developers estimate the installation will serve more than 1.4 million residences while cutting carbon dioxide emissions by over 1.5 million tonnes annually.
This infrastructure forms a component of the EBRD's Energy Pillar under the country's Nexus of Water, Food and Energy framework. The broader strategy targets the deployment of 10GW of private sector renewable energy while phasing out 5GW of less efficient fossil fuel generation.
According to Aida Sitdikova, the EBRD sustainable infrastructure director for the Middle East and Africa, quoted by Power Technology, the initiative represents the largest combined solar and battery installation in Egypt and the wider continent to date.
Why it matters
For energy investors and policymakers across Africa, the scale of the Egyptian financing package highlights how multi-lateral development banks can unlock private capital for complex hybrid renewable assets. Integrating utility-scale battery storage directly into massive solar plants addresses the intermittency challenges that frequently limit renewable energy expansion across emerging markets.
Although Egypt achieved 100 percent electricity access by 2024 according to World Bank figures, expanding generation capacity while curbing emissions remains a central priority, particularly given that fossil fuels historically dominated regional supply. Lessons from structuring the Nefer Minya debt package provide a useful reference for other developing nations seeking to scale up private sector clean energy investments and modernise transmission grids.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
12.2% of electricity in Egypt was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
