Original Coverage & Source Attribution: www.greenbuildingafrica.co.za
- The 1.2 GW solar PV plant in Minya will be integrated with a 600 MWh battery energy storage system to improve grid stability and supply electricity after sunset.
- The European Bank for Reconstruction and Development is arranging up to US$ 265 million in financing as part of a wider US$ 566 million debt package involving international development finance institutions.
The European Bank for Reconstruction and Development (EBRD) is leading the financing of a 1.2 GW solar photovoltaic (PV) power plant and a 600 MWh battery energy storage system in Minya, Egypt. The project is expected to become the largest solar power plant in Egypt and Africa.
The facility is being developed by Nefer Menya for Renewable Energy, a special purpose company owned by Infinity Power and HAU Energy. The project will combine large scale solar generation with battery storage to strengthen Egypt’s electricity supply, improve grid reliability and provide power during peak demand after sunset.
The EBRD is arranging a loan of up to US$ 265 million as part of an overall debt financing package of up to US$ 566 million. The EBRD financing includes a US$ 160 million loan from its own funds, a US$ 75 million syndicated loan mobilised from Bank of Jordan and up to US$ 30 million in concessional financing from the Clean Technology Fund (CTF) under its Global Energy Storage Program.
German development finance institution DEG, the Dutch Entrepreneurial Development Bank (FMO) and France’s Proparco are also participating in the wider financing package.
Electricity generated by the plant will be sold to the Egyptian Electricity Transmission Company under a 25 year power purchase agreement. The project is expected to provide competitively priced renewable electricity, supply enough power for more than 1.4 million homes and prevent over 1.5 million tonnes of CO2 emissions each year.
The 600 MWh battery energy storage system will store electricity generated during daylight hours for use when solar generation falls and demand increases in the evening. The integration of storage is intended to improve grid stability and reliability while helping Egypt accommodate a greater share of renewable energy.
The investment supports Egypt’s Nexus of Water, Food and Energy initiative, launched at COP27, and its renewable energy objectives. The EBRD led energy pillar aims to facilitate the development of 10 GW of new private sector renewable energy capacity while reducing 5 GW of inefficient fossil fuel capacity.
Aida Sitdikova, EBRD Director of Sustainable Infrastructure in the Middle East and Africa, said the project would strengthen Egypt’s energy security and improve grid resilience by combining large scale solar generation with utility scale battery storage. She described Egypt as a leader in deploying renewable energy at affordable prices and highlighted the EBRD’s continued partnership with Infinity Power and Hassan Allam Utilities.
Infinity Power, a joint venture established in 2019 by Infinity and Masdar, is Africa’s largest dedicated renewable energy company. HAU Energy was established in 2024 to develop renewable energy projects in Egypt and is owned by Meridiam, Hassan Allam Utilities and the EBRD.
Infinity Power said the project reflects growing confidence in Egypt’s renewable energy sector and supports its ambition to reach 10 GW of operational renewable energy capacity by 2032. Hassan Allam Utilities also highlighted the role of renewable energy in reducing reliance on imported fuels and supporting Egypt’s target of generating 42% of its electricity from renewable sources by 2030.
Beyond the energy infrastructure, CTF funding will support two nationally accredited technical training programmes for young people entering the labour market in Minya governorate. The programmes will focus on green skills and improve employment prospects in Egypt’s expanding renewable energy sector.
The funding will also support Hassan Allam Utilities in strengthening its human resources policies, incorporating gender equality into workforce management and improving women’s access to technical and leadership positions in the energy industry.
The investment builds on the EBRD’s presence in Egypt, where it has invested more than €16 billion through 238 projects since beginning operations in the country in 2012.
Author: Bryan Groenendaal
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