The proposed solar projects are being constructed as part of Egypt’s new solar energy programme to source 20% of electricity from renewable sources by the end of this decade.
Around 40 projects with an installed capacity of 50MW each will be built by private firms in the country. Many of these projects will be located on a planned 1.8GW site near Benban in Upper Egypt, which on completion would become the largest solar park in the world.
EBRD Egypt country director Philip ter Woort said: "Egypt currently relies to a large extent on traditional power generation fueled by costly hydrocarbon imports, however the government has an ambitious strategy to obtain 20% of the country’s electricity from renewable sources by 2020.
"Egypt is well placed to do so as it has world-class solar resources and in some places, especially in the Gulf of Suez, great potential for wind power."
The funding follows EBRD’s recent commitment to provide $250m in credit facility for private sector renewable energy projects in Egypt, Morocco, Jordan and Tunisia.
EBRD, along with Banque Marocaine du Commerce Exterieur (BMCE) and the Clean Technology Fund, has also invested in the Khalladi wind farm in Morocco.
The €126m funding from the bank and BMCE will be spent on the construction, operation and maintenance of the 120MW wind farm.
EBRD also committed to double its sustainable energy and resource financing, to 40% of its annual volume by 2020.
Image: EBRD has allocated $500m for Egypt’s solar programme. Photo: courtesy of European Bank for Reconstruction and Development.
