The European Bank for Reconstruction and Development (EBRD) approved the framework for the financing of renewable energy in Egypt to the tune of $500 million. The financing supports the development of private renewable energy projects under the Egyptian government’s FiT program.
In addition, the board of the EBRD 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 PV capacity.
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.
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.”