The European Bank for Reconstruction and Development (EBRD) has approved a US$500 million framework to finance renewable energy in Egypt.
The financing supports the development of private renewable energy projects under the Egyptian government's feed-in-tariff programme. That programme aims to stimulate private investment in over 4 GW of wind and solar power.
At the same time, the Board approved 13 projects under the same framework, with a further three scheduled for Board discussion later in June. These 16 plants will deliver 750 MW of solar photovoltaic capacity and are expected to reduce carbon dioxide emissions by 900,000 tonnes a year. All the plants will be constructed on one large site near the village of Benban in Upper Egypt and will bring significant investment to this region. These will also be the first private utility-scale renewable projects in a sector that is otherwise dominated by the use of hydrocarbons.
More than 50 per cent of the population in the Aswan region are below the poverty line. The EBRD’s solar projects will bring a significant short-term boost to the economy through the construction activities and will provide ongoing benefits through the transfer of skills and through long-term jobs in operation and maintenance.
Harry Boyd-Carpenter, Director, Head of Power and Energy at the EBRD, said:
“This is a major milestone in our support for renewable energy in Egypt. We have been working with the Egyptian authorities since 2014 to help them fulfil their ambitious goals in this area. We are delighted now to be in a position to commit very significant financing to projects, which we expect to start construction before the end of 2017. This progress is really a tribute to the Egyptian government’s sustained commitment to making the best use of their abundant solar and wind resources to move to a more diverse and sustainable energy sector.”
The EBRD began investing in the southern and eastern Mediterranean region in 2012 and has already financed wind and solar projects in Jordan and Morocco worth €700 million. In Jordan alone the Bank has financed seven large-scale renewable projects with a combined capacity of more than 200 MW. The Bank has also launched an innovative framework that blends EBRD lending with climate financing to support private sector renewable projects.
Between 2007 and 2016 the EBRD invested more than €3.5 billion directly in renewable energy, supporting 104 projects in 23 countries, and funding more than 5.3 GW of capacity.
During the last two months we have reported about several projects in Egypt:
Scatec Solar and partners have signed 25-year Power Purchase Agreements for delivery of electricity from six solar plants totaling 400 MW with the Government of Egypt.
Read moreThe EIB and the Arab Republic of Egypt signed a loan agreement of €115 million (US$124 million) for financing a windfarm in the Gulf of Suez to further expand energy generation from renewable resources.
Read moreEgyptian-based company Infinity Solar S.A.E. and German-based companies ib vogt GmbH and Solizer GmbH & Co. KG have announced the successful closure of a 64.1 MWp solar power plant project in Benban, Aswan, Egypt by the Infinity 50 consortium of which they are members.
Read moreELSEWEDY ELECTRIC, an integrated energy solution provider in the Middle East and Africa, announced the signing of a memorandum of understanding (MoU) in a consortium with Japan’s MARUBENI Corporation with the Government of Egypt to develop a new wind power plant in Gulf of Suez on build, own and operate basis.
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