The total of $116m will be used for the construction of the first two projects that have been financed under the second round of Egypt's feed-in tariff scheme for renewable.
The two projects are part of the upcoming 1.8GW Benban solar complex in the Aswan province, in the southern area of Upper Egypt.
The two solar plants are also considered to be the first projects under EBRD’s new $500m framework for renewable energy in the country.
under Proparco’s dedicated envelope for solar projects in Egypt, the framework is expected to provide finance for at least 16 more projects, which have a potential to generate about 750MW.
Construction of the two solar plants will be undertaken by two subsidiaries of the French company EREN Renewable Energy and Dubai-based Access Power. These two companies will also own and operate these solar plants.
EBRD Power and Energy utilities director Harry-Boyd Carpenter said: “Projects such as these depend on partnership and this financing demonstrates this very clearly. We are privileged to be working with EREN and Access Power, who bring deep expertise and sustained commitment to renewable energy and Proparco, with whom we have a very strong partnership supporting renewable energy in Jordan, which we are proud to extend to Egypt."
Proparco Energy and Infrastructure Division, senior investment officer Alice Lucas said: “We are proud to have worked tirelessly over the past two years with the EBRD, EREN, Access Power and the Egyptian authorities to establish the first building blocks of the Benban solar complex.
“As the first two projects being fully financed in round two of the FiT programme, these are setting a path for other investments to follow.”
Image: EBRD and Proparco to support two solar plants in Egypt. Photo: Courtesy of the European Bank for Reconstruction and Development.
