A planned 1.2-GW solar power plant project with a 600-Mwh battery energy storage system in Egypt passed a major financing milestone last month, securing a debt financing package of up to $566 million.
The financing for the Nefer Minya Solar PV Project includes $265 million arranged by the European Bank for Reconstruction and Development (EBRD) for the project’s developer Nefer Menya for Renewable Energy S.A.E., a special purpose vehicle owned by Africa’s largest renewable energy provider, Infinity Power, and Hassan Allam Utilities (HAU) Energy B.V., a funding vehicle incorporated in the Netherlands for developing and operating renewable energy projects in Egypt and the rest of Africa.
EBRD said the $265 million consists of a $160 million A-loan from the EBRD’s own funds, a $75 million B-loan mobilized from Bank of Jordan and up to $30 million in concessional financing from the CIF Clean Technology Fund under its Global Energy Storage Program.
The project, located in Upper Egypt’s Minya Governorate approximately 245 km south of the capital Cairo, is expected to contribute to the Egyptian government’s goal of generating at least 42% of all its electricity requirements from renewable sources by 2030 and over 60% by 2040. The government intends to meet these targets through investments in wind, hydropower, PV solar, and green hydrogen technologies.
“As the largest solar PV project in Egypt and Africa, paired with one of the country’s first utility-scale battery energy storage systems, Nefer Menya will strengthen energy security, enhance grid resilience and support Egypt’s transition to a low-carbon economy,” a statement by Infinity Power’s Co-founder and CEO Nayer Fouad said.
The battery system will store solar power generated during the day for use during peak demand after sunset, helping to strengthen the stability and reliability of Egypt’s grid, which includes at least 8,250-km of 500-kV transmission with a total of 35 substations of 48,000-MVA capacity.
Electricity will be sold to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement, providing clean, renewable power at a lower cost than conventional generation. The project is expected to avoid releasing more than 1.5 million tonnes of CO2 emissions per year and will provide enough power for more than 1.4 million homes.
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The Nefer Minya Solar PV Project will expand the country’s installed capacity from renewable energy, currently estimated at 7,750 MW, despite government reporting delays in commissioning of previously launched large-scale wind and solar projects especially in the Red Sea and Western Desert regions.
“Egypt has set a clear ambition to generate 42% of its electricity from renewable sources by 2030, and Hassan Allam Utilities is committed to helping drive that agenda by delivering green, reliable infrastructure across the country,” said Dalia Wahba, CEO of Hassan Allam Utilities, which owns HAU Energy.
When completed, the solar PV project is also expected to boost Egypt’s ongoing expansion of the capacity of its power interconnectors to Jordan, Sudan, Libya, Saudi Arabia, Greece and Italy.
Source: www.enr.com
