African Development Bank, British International Investment, and European Bank for Development and Reconstruction Support Pioneering Solar and Battery Storage Project in Egypt with $476 Million Loan

Strategic Insights -

The African Development Bank, British International Investment, and the European Bank for Development and Reconstruction have joined forces to support a groundbreaking solar and battery storage project in Egypt. The project, led by Scatec ASA, aims to deliver dispatchable clean energy, enhance grid stability, and manage peak demand. With a total investment of $590 million, the project is expected to generate approximately 3,000 GWh of clean energy annually, reducing carbon dioxide emissions by up to 1.4 million metric tons.

Key Takeaways:

  • The project's blended financing of $475.6 million corresponds to approximately 80% of the total estimated capital expenditure of $590 million.
  • The integrated solar and battery storage plant will be developed in two phases, with the first phase aiming to begin operations in the first half of 2026 and the second phase expected to start operations in the second half of 2026.
  • The energy will be sold under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.
  • The project will support Egypt's decarbonisation goals, generating approximately 3,000 GWh of clean energy and reducing emissions by up to 1.4 million metric tons annually.
  • The facility will contribute to the diversification of Egypt's energy mix and increase the share of renewable energy, reducing greenhouse gas emissions and supporting the country's climate ambitions.
  • The project is expected to set a precedent for future dispatchable hybrid renewable energy projects in the region.
  • Scatec, the project's operation and maintenance contractor, will partner with leading development finance institutions to support Egypt's clean energy ambitions.
  • The project reflects Egypt's continued efforts to scale renewable energy, enhance grid resilience, and drive forward the implementation of the country's Nexus of Water, Food and Energy (NWFE) Country Platform.

Statistics:

  • Total estimated capital expenditure: $590 million
  • Blended financing: $475.6 million
  • First phase operations start date: First half of 2026
  • Second phase operations start date: Second half of 2026
  • Clean energy generation: Approximately 3,000 GWh annually
  • Emissions reduction: Up to 1.4 million metric tons annually
  • Egypt's renewable energy target: 42% by 2030

Sources:

  • M2 PressWIRE: African Development Bank, British International Investment and European Bank of Reconstruction and Development support pioneering solar and battery storage project in Egypt with $476 million loan (C) 1994-2025 M2 COMMUNICATIONS
  • African Development Bank Group (AfDB): Press Release (https://apo-opa.co/4le4gsV)
  • British International Investment: Press Release (https://apo-opa.co/4jPtTPq)
  • European Bank for Development and Reconstruction (EBRD): Press Release (https://apo-opa.co/4kHHidA)