EBRD backs Egypt’s first solar and battery storage project

The European Bank for Reconstruction and Development (EBRD) is supporting Egypt’s renewable-energy sector by providing a US$ 30 million equity bridge to Obelisk Solar Power, a special purpose vehicle owned by Scatec ASA, a leading global renewable energy developer and a key strategic client for the EBRD.

The funds will contribute to the equity commitments required for the construction of a 1 gigawatt-alternating current (GWac) photovoltaic solar plant and a 200 MWh battery energy storage system (BESS) in Nagaa Hammadi. It will be one of the first hybrid renewable energy projects in Egypt and is expected to serve as a pilot for uptake of the technology in the country.

The project will support the green energy transition in Egypt while helping keep the grid stable and reliable in the face of growing electricity demand. It is being developed under the EBRD-led energy pillar of Egypt’s Nexus on Water, Food, Energy, which was launched at COP27 in Sharm El Sheikh with the aim of unlocking the country’s potential to become the leading renewable energy hub in the region. The project is expected to reduce Egypt’s CO2 emissions by 1,357,000 tonnes per year.

Egypt is a founding member of the EBRD. Since the start of the Bank’s operations in the country in 2012, it has invested more than €13.8 billion in 201 projects across the country. The EBRD’s areas of investment in Egypt include the financial sector, agribusiness and manufacturing and services, as well as infrastructure projects in the power, municipal water and wastewater service sectors, and contributions to upgrading the transport sector‎.