Energy
Construction begins on large Egyptian solar and storage facility
Infinity Power and Hassan Allam Utilities have initiated full-scale construction on the Nefer Minya solar and battery storage project in Egypt.
Key points
- The project features 1.2GW of solar capacity and a 600MWh battery energy storage system.
- Financing includes syndicated loans of up to $265m arranged by the European Bank for Reconstruction and Development.
- Commercial operations are scheduled to begin by September 2027.
What happened
Infinity Power and Hassan Allam Utilities Energy have moved forward with full-scale construction at the Nefer Minya solar and battery energy storage site located in West Minya, Egypt. Power Technology reported that the developers issued a Notice to Proceed following the finalisation of financing arrangements, including up to $265m in syndicated loans arranged by the European Bank for Reconstruction and Development.
The installation will comprise 1.2GW of solar photovoltaic capacity alongside a 600MWh battery energy storage system. Developers state that the storage component will capture daytime generation for dispatch during evening peak demand periods, supporting overall grid stability. Early site works commenced in June 2026, with commercial operations targeted for September 2027.
Project structure and supply agreements
A joint venture formed by Hassan Allam Construction and Sterling & Wilson will provide engineering, procurement, and construction services for the site. The electricity produced will be delivered to the Egyptian Electricity Transmission Company under the terms of a 25-year power purchase agreement.
Once completed, the plant is expected to supply clean electricity to approximately 1.4 million households annually while mitigating roughly 1.5 million tonnes of carbon dioxide emissions each year. The initiative contributes to Infinity Power's broader corporate target of reaching 10GW of operational renewable capacity by 2032.
Why it matters
This development highlights the growing integration of large-scale battery storage alongside solar deployments to address intermittency challenges in North African power grids. According to World Bank figures from 2021, Egypt's renewable share of electricity output stood at 12.2 percent, leaving substantial room for capacity expansion to meet rising domestic demand and national decarbonisation goals. For investors and developers across the continent, the project demonstrates how syndicated development financing from multilateral institutions can successfully unlock capital for gigawatt-scale renewable infrastructure supported by long-term state utility off-take agreements.
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