The European Bank for Reconstruction and Development (EBRD) has granted about $54m in financing for the construction and development of a 200 MW solar PV project located in Egypt’s Kom Ombo area.
The financing will be provided as senior debt financing of up to $40m, co-financed with other parties, in addition to an equity bridge loan of up to $14m, the EBRD said. The project at Kom Ombo set to cost a total of $155.4m.
The project will be one of the largest privately developed utility scale solar plants in Egypt, and will support the country in increasing its renewable energy capacity, according to the bank.
The project will further promote private sector participation in Egypt’s power sector, whilst increasing the share of renewable energy in the country’s energy mix, in line with the nationally declared targets.
The environmental characteristics of Egypt’s power sector are expected to further improve through the project, as emissions of local pollutants and carbon dioxide are set to be reduced. It is also expected to have a significant effect on reducing the country’s water consumption.
The project will contribute to Egypt’s green transition, by adding 200 MW of new renewable energy to the national electricity grid capacity. It will also help in demonstrating a new business model for the provision of solar energy through a public tendering process. It is projected to achieve a competitive tariff, and promote the growth of solar energy as an affordable alternative to conventional energy sources.