The European Bank for Reconstruction and Development (EBRD) has announced a US$265 million loan for a new 1.2GW solar PV plant, to be co-located with a 600MWh battery energy storage system (BESS), in Minya, Egypt.
The EBRD loan will be made to Nefer Menya for Renewable Energy, a special purpose vehicle (SPV) created by African independent power producer (IPP) Infinity Power and Egypt-headquartered Hassan Allam Utilities (HAU) Energy.
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The facility will be the largest solar power plant in Africa and electricity generated at the Minya facility will be sold under 25-year power purchase agreement (PPA) to the Egyptian Electricity Transmission Company.
The latest project’s finance comprises US$160 million from the EBRD, US$75 million from Bank of Jordan and up to US$30 million in concessional financing from the Climate Investment Fund, a Chinese investment house with assets of around US$14 billion.
The project is one of several to combine solar generation with on-site battery storage in Egypt, and joins projects owned by Norwegian IPP Scatec and UAE-based AMEA Power. This is also not the EBRD’s first investment into a HAU Energy project; the bank provided a US$65 million loan for a 200MW solar PV, 120MWh BESS project in April.
“The EBRD is proud to lead the financing of this landmark 1.2GW solar PV and 600MWh battery storage project, the largest in Egypt and Africa to date,” said EBRD director of sustainable infrastructure in the Middle East and Africa Aida Sitdikova.
“By combining solar generation with utility-scale battery storage, this project will strengthen the country’s energy security and enhance grid resilience. We are delighted to partner once again with Infinity Power and Hassan Allam Utilities to support Egypt’s ambitious energy transition goals.”
