Egypt Secures $479 Million for Solar Plant with Battery Storage
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Egypt has successfully secured $479.1 million in international funding to construct its first large-scale solar power plant featuring battery storage, marking a significant step in its energy transition. This $590 million project, located in Nagaa Hammadi in southern Egypt, will incorporate 1.1 GW of photovoltaic capacity alongside 200 MWh of battery storage, a pioneering initiative of this scale in the country.
The funding represents nearly 80% of the total project cost and is spearheaded by the British International Investment (BII), the African Development Bank (AfDB), and the European Bank for Reconstruction and Development (EBRD). The project employs a blended finance structure, which combines concessional loans, guarantees, and grants to support the development of essential energy infrastructure.
The AfDB is contributing $184.1 million, which includes $125.5 million from its core resources, along with nearly $40 million sourced from climate-related partner funds such as Canada-AfDB, SEFA, and CIF. The EBRD is providing up to $173.5 million, backed by a European guarantee (EFSD+) and a $6.5 million grant. Meanwhile, BII is offering $100 million in the form of a concessional loan and a $15 million repayable grant to help reduce battery system costs, which are vital for maintaining grid stability.
The project will be implemented in two phases, with the initial phase set to commence in 2026. It is anticipated to produce approximately 3,000 GWh of electricity annually, which will be sold under a 25-year power purchase agreement to the Egyptian Electricity Transmission Company, supported by a sovereign guarantee.
According to the AfDB, this initiative sets a benchmark for structuring green investments in Africa. Wale Shonibare, Director of Financial Solutions, Energy Policy and Regulation at the AfDB, stated, “It demonstrates that well-structured financing can make complex projects economically viable, essential for decarbonization.” The solar plant is projected to reduce CO₂ emissions by 1.4 million tons each year, contributing to Egypt’s goal of increasing the share of renewables to 42% of its energy mix by 2030.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/egypt-secures-479-million-for-landmark-solar-plant-with-battery-storage/
