The Asian Infrastructure Investment Bank (AIIB) has agreed to provide up to $210m of debt financing to support the development of 11 solar power projects across Egypt.
The solar power plants are expected to generate about 490MW of clean energy. The project can help in avoiding more than half a million tons of CO2 per year.
AIIB stated that these projects will be financed by a syndicate of lenders including itself on a limited recourse project finance basis. The projects are being co-financed by International Finance Corporation (IFC).
The program is expected to lead to a rise in Egypt’s generation capacity, enabling the country to export energy during peak hours and improve its connectivity in the Middle East, Asia, Europe and Africa.
AIIB vice president and chief investment officer D J Pandian said: "Investing in clean, renewable energy is a big part of our strategy to promote a sustainable and low-carbon future for Asia.
"We are supporting this project because it contributes to Egypt’s renewable energy capacity, and it will help position the country as a regional energy hub, which will have economic benefits for the entire region."
The eleven projects that will receive the financing in Egypt will include 50MW TAQA Arabia, 50MW SP Energy, 50MW Phoenix Power 1, 20MW Winnergy project, 20MW Arinna Solar Power, 50MW ARC for Renewable Energy, 50MW Delta for Renewable Energy, 50MW Alcazar Energy Egypt Solar 1, 50WM Enara SunEdison, 50MW Al Subh Solar Power projects.
The green electricity produced from these eleven projects will be sold under a 25-year power purchase agreement to Egyptian Electricity Transmission Company (EETC).
Image: AIIB to provide finance for 11 solar projects in Egypt. Photo: Courtesy of RK008/FreeDigitalPhotos.net.