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Al-Ahram Weekly
15 hours ago
- Business
- Al-Ahram Weekly
BII commits over $300 mln to Egypt's renewable energy projects - Energy
British International Investment (BII), the UK's development finance institution and impact investor, announced on Wednesday over $300 million in new commitments to support Egypt's transition to clean energy, as the country seeks to position itself as a regional renewable energy hub. The funds will help develop more than 2 gigawatts of new renewable energy capacity, contributing to Egypt's target of generating 42 percent of its electricity from renewable sources by 2030. The financing supports two large-scale projects: the 1.1 gigawatt Gulf of Suez Wind Farm, set to be Africa's largest onshore wind installation, and a 1 gigawatt solar photovoltaic (PV) and battery energy storage system (BESS) being developed in collaboration with Norwegian energy company Scatec. Gulf of Suez Wind Farm: Africa's largest onshore wind project BII is investing $190 million in the $1.05 billion Gulf of Suez Wind Farm, which will produce over 4,300 gigawatt hours (GWh) of electricity annually and prevent an estimated 2.2 million tonnes of CO₂ emissions per year. The project is also expected to support more than 10,000 jobs, according to BII. The wind farm is part of a $707 million debt package backed by a group of development finance institutions (DFIs), including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), DEG – Deutsche Investitions- und Entwicklungsgesellschaft, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP). The project is a core pillar of Egypt's Nexus of Water, Food, and Energy (NWFE) initiative, a government framework that aims to integrate climate-related investments across various sectors. Pioneering solar + storage: Egypt's 1st utility-scale BESS project BII is also co-financing Egypt's first utility-scale solar and battery storage project alongside Scatec, the EBRD, and the AfDB. The $475.6 million project, which accounts for 80 percent of the total capital cost, will deliver 1 GW of solar capacity and 200 megawatt-hours (MWh) of battery storage aimed at enhancing grid reliability. To support the battery component, BII is providing a $100 million concessional loan and a $15 million grant as part of a blended finance approach aimed at reducing costs and attracting private investment. With these deals, BII's total investment portfolio in Egypt now exceeds $708 million. The institution says it views Egypt as a key market in its broader North Africa strategy, which includes green hydrogen projects in Morocco and sustainable agriculture initiatives in Tunisia. 'Our latest agreements reflect BII's long-term commitment to Egypt's clean energy transition and our confidence in the country's ability to lead on climate innovation in the region,' said Sherine Shohdy, BII's Head of Egypt Office and Coverage Director. 'Through our capital partnerships, we are proud to deliver new infrastructure that provides affordable, reliable, low-carbon power and unlocks thousands of green jobs. Our goal is to deliver impact at scale, supporting Egypt's renewable energy ambitions and the resilience of its wider economy', Shohdy added. Both projects support Egypt's Vision 2030 development strategy and highlight growing international interest in the country's energy transition. They also reflect the role that concessional finance is playing in making large-scale renewable projects viable in emerging markets. Follow us on: Facebook Instagram Whatsapp Short link:
Daily News Egypt
16-06-2025
- Business
- Daily News Egypt
IFC, AMEA Power launch Egypt's first utility-scale battery storage system
The International Finance Corporation (IFC) announced on Sunday a landmark investment to support the development of Egypt's first utility-scale battery energy storage system (BESS), in partnership with AMEA Power and the Government of Egypt. The project aims to enhance grid resilience and support the country's transition to clean energy. The IFC is providing a $72m debt package to Abydos Solar Project Company, a subsidiary of AMEA Power, to finance the integration of a 300 MWh BESS with the recently operational 500 MWac Kom Ombo solar photovoltaic plant in Aswan Governorate. The solar plant, which began operations in November 2024, was also financed by IFC and international partners in 2022. The battery system, currently in the commissioning phase, is expected to be fully operational by July 2025. Once online, it will deliver approximately 100,000 MWh of energy annually and reduce CO₂ emissions by nearly 20,000 tons each year. This milestone marks the first BESS to be developed under Egypt's 4 GW Emergency Renewable Energy Program—an initiative designed to meet increasing electricity demand through clean, cost-effective sources while reducing reliance on imported natural gas. 'At AMEA Power, we are committed to transforming the energy landscape through innovation, speed, and local collaboration,' said Hussain Al Nowais, Chairman of AMEA Power. 'Achieving financial close for Egypt's first utility-scale BESS—following the successful launch of our 500 MW wind farm in the country—is a clear demonstration of our ability to deliver large-scale renewable energy projects. We're proud to support Egypt's energy transition and grid reliability.' Makhtar Diop, Managing Director of IFC, emphasized the significance of the partnership: 'Meeting Egypt's rising energy demand—especially during peak summer months—requires bold, forward-looking solutions. This project delivers sustainable infrastructure today while laying the foundation for a more resilient, cleaner energy future. It showcases how strategic partnerships and advanced technologies can accelerate energy transitions.' The BESS project aligns with Egypt's climate platform, the Nexus of Water, Food, and Energy (NWFE), and the World Bank Group's Country Partnership Framework for Egypt (FY23–27), which emphasizes job creation, human capital development, and resilience to environmental and economic shocks. Since 2017, the World Bank Group and other development finance institutions (DFIs) have supported Egypt's private sector in developing 2.1 GW of solar and 2.8 GW of wind capacity. These efforts are expected to account for over half of Egypt's installed renewable energy capacity by 2027. IFC has played a key role in landmark initiatives such as the 1.4 GW feed-in-tariff (FiT) program at the Benban Solar Park, the 252 MW West Bakr Wind project, and AMEA Power's twin 500 MW Abydos Solar and Amunet Wind projects. Since launching its operations in Egypt in 1975, IFC has invested and mobilized nearly $10bn in development projects and maintains an advisory portfolio valued at $25m. Its work in Egypt spans climate finance, fintech, infrastructure, healthcare, manufacturing, gender equity, and renewable energy.
Egypt Today
15-06-2025
- Business
- Egypt Today
Egypt signs 6 agreements to accelerate renewable energy
CAIRO – 15 June 2025: At the Development Finance to Foster Private Sector-Led Growth & Jobs conference, the Egyptian government inked six major agreements with international development partners and private sector players, reinforcing its commitment to sustainable energy and economic growth. A key highlight was the financial closure of the Obelisk Solar Power Plant, a flagship project by Norway's Scatec, featuring 1 gigawatt of solar capacity and 200 megawatt-hours of battery storage. With an investment of $600 million, the project is part of the Ministry of Electricity's emergency energy expansion plan and contributes to the energy pillar of Egypt's NWFE (Nexus of Water, Food, and Energy) program. The conference also saw the signing of a Power Purchase Agreement for the Shadwan Wind Project, another Scatec-led venture located in Ras Shukeir, Gulf of Suez. The project will deliver 900 megawatts of wind energy and bring in approximately $1 billion in direct foreign investment, further supporting Egypt's clean energy agenda under NWFE. In a third major step, the International Finance Corporation (IFC) partnered with AMEA Power of the UAE to finance Egypt's first utility-scale battery energy storage facility, integrated within the Abydos Solar Project, another key NWFE initiative. Beyond energy, agreements were signed to expand private sector support through the Hafiz platform. The Ministry of Planning and Economic Development signed an MoU with the Federation of Egyptian Banks to improve access to financial and technical services for local businesses. Additionally, a €21 million investment grant was signed with the European Investment Bank (EIB) to advance Egypt's Sustainable Green Industries Project. Rounding off the agreements, Minister Rania Al-Mashat signed a cooperation deal with 12 representatives from chambers of commerce, business associations, and the Federation of Egyptian Industries to scale up engagement with Hafiz and strengthen support for entrepreneurs and industrial leaders across Egypt.
Business Insider
13-06-2025
- Business
- Business Insider
AfDB approves $184.1 million for Africa's largest solar project in Egypt
The African Development Bank Group's Board of Directors has approved up to $184.1 million in financing for the Obelisk solar project in Egypt, which is set to become Africa's largest solar power plant. The African Development Bank approved $184.1 million for Egypt's Obelisk solar project. This project includes a 1-gigawatt solar PV facility and a 200MWh battery storage system. Located in Qena Governorate, its electricity will be sold under a 25-year agreement. The African Development Bank Group's Board of Directors has approved up to $184.1 million in financing for the Obelisk solar project in Egypt, which is set to become Africa's largest solar power plant. The project will feature a 1-gigawatt solar photovoltaic (PV) facility and a 200MWh battery energy storage system, according to the bank's website. Located in the Qena Governorate of southern Egypt, the project involves the design, construction, operation, and maintenance of the integrated solar and battery system. The Egyptian Electricity Transmission Company will serve as the sole off-taker through a 25-year Power Purchase Agreement. 'Obelisk is another landmark development under NWFE that leverages on Egypt's and the African Development Bank's leadership as well as commitment to harnessing the country's renewable energy to enhance the resilience of the country's energy supply to meet its fast-growing energy demand sustainably,' said Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth. With a total estimated cost exceeding $590 million, the Bank Group's financing package includes $125.5 million from its ordinary resources, along with concessional funding from several Bank-managed sources: $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund (a partnership with the Government of Canada), and $20 million from the Climate Investment Fund's Clean Technology Fund. Additional funding will be raised from a consortium of development finance institutions. Under Egypt's Nexus of Water, Food, and Energy (NWFE) platform, the Obelisk solar project has been granted a Golden License, recognizing it as a strategic initiative that supports Egypt's efforts to overcome energy constraints and accelerate its clean energy transition. Dr. Rania Al-Mashat, Egypt's Minister of Planning, Economic Development and International Cooperation, described the project as a key milestone under NWFE's energy pillar. Clean energy for millions Since its launch at COP27 in Sharm El Sheikh in November 2022, the NWFE energy program has attracted $4 billion in private investment to support 4.2 GW of renewable energy capacity. The broader goal is to install 10 GW of renewable energy and phase out 5 GW of fossil fuel-based power generation by 2030, with total investments estimated at $10 billion. Expected to be fully operational by the third quarter of 2026, the Obelisk project will supply approximately 2,772 gigawatt-hours of clean, affordable, and reliable electricity to Egypt's national grid each year. The project is projected to reduce carbon dioxide emissions by around one million tons annually and generate significant socio-economic benefits, including the creation of about 4,000 jobs during construction and 50 permanent positions during operation, with a focus on employing women and youth.
Egypt Today
12-06-2025
- Business
- Egypt Today
African Development Bank greenlights $184.1M to back Africa's largest solar power facility in Egypt
Cairo – June 12, 2025: The African Development Bank (AfDB) Group has approved a financing package of up to $184.1 million to back the development of the Obelisk solar project in southern Egypt. Once completed, the project will stand as Africa's largest solar power facility, with a capacity of 1 gigawatt. It will also feature a 200 MWh battery energy storage system to enhance grid stability and ensure a more consistent flow of renewable energy. To be located in Qena Governorate, the Obelisk project involves the design, construction, operation, and maintenance of a large-scale solar plant integrated with energy storage. The Egyptian Electricity Transmission Company will act as the sole off-taker under a 25-year Power Purchase Agreement. The total development cost exceeds $590 million, with the African Development Bank contributing $125.5 million from its ordinary capital resources. An additional $20 million will come from the Bank-managed Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund, and $20 million from the Clean Technology Fund under the Climate Investment Funds umbrella. Further funding is expected from a consortium of development finance institutions. The project has been awarded a "Golden License" under Egypt's Nexus of Water, Food, and Energy (NWFE) initiative, reflecting its strategic significance to the country's energy goals. It is part of a broader energy transition effort to install 10 GW of renewable capacity and phase out 5 GW of fossil fuel generation by 2030. 'The Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE program which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with the support of partners such as the Africa Development Bank,' said Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation. Once operational—targeted for the third quarter of 2026—the plant will generate approximately 2,772 GWh of clean energy annually. The integrated battery system will enable the grid to meet peak evening demand using solar power, while also mitigating fluctuations in generation. Environmental benefits include an estimated annual reduction of one million tons of carbon dioxide emissions. Employment impact is also a key feature, with the construction phase expected to create around 4,000 jobs and 50 permanent positions during operations. Special emphasis will be placed on the inclusion of women and youth in the workforce. 'Obelisk is another landmark development under NWFE that leverages on Egypt's and the African Development Bank's leadership as well as commitment to harnessing the country's renewable energy to enhance the resilience of the country's energy supply to meet its fast-growing energy demand sustainably,' said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth. The initiative also received strong endorsement from international partners. 'Canada is proud to support solar energy development in Egypt. This initiative is a meaningful step toward enhancing energy security and stability, with direct benefits for the Egyptian people,' said Ulric Shannon, Ambassador of Canada to Egypt. The project is closely aligned with the African Development Bank's Ten-Year Strategy, the New Deal on Energy for Africa, and Egypt's Country Strategy Paper. It also supports SEFA's mission to catalyze renewable energy investment and help African nations transition toward low-carbon power systems. 'This project exploits the abundant renewable energy potential in Africa and demonstrates how strong partnerships and innovative solutions contribute to balancing three core objectives in the energy sector, namely energy security, affordability, and sustainable economic development,' said Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at AfDB. 'It has high potential for replicability across the continent.'
