The European Bank for Reconstruction and Development (EBRD) along with its partners are providing funds to the tune of $335m to Scatec Solar for the development of six solar projects with a total output of 300MW.
The solar projects, each with 50MW of output will be constructed in Egypt. The other partners of the EBRD include the Green Climate Fund (GCF), the Islamic Development Bank (IsDB), the Islamic Corporation for the Development of the Private Sector (ICD) and the Dutch development bank FMO.
The EBRD is providing loans of $235m out of which the GCF and FMO will each provide $48m and $72m respectively. Apart from this, IsDB and ICD will each provide $75m and $25m, respectively.
The six projects are part of EBRD’s new $500m framework for renewable energy in Egypt. Under this new framework, a total of 16 renewable projects are expected to come online with a total capacity of 750MW.
EBRD power and energy utilities, head Harry Boyd-Carpenter said: “We are delighted to support today the largest solar portfolio in Egypt's feed-in-tariff scheme, and to work again with Scatec Solar. As well as its size this project is notable as our first investment with the Green Climate Fund under our Egypt Renewable Energy Financing Framework."
It is also claimed that it is the first time that the GCF is contributing under an agreement signed with the EBRD in April this year. Through the agreement, EBRD is now the largest single recipient of resources from GCF.
In October last year, the GCF decided to set aside $378m to support green investments by the EBRD.
So far, the EBRD has made a direct investment of over €3.8bn in renewable energy, supporting 119 projects in 23 countries and funding over 6GW of capacity.
Scatec Solar CEO Raymond Carlsen said: “With this programme the government of Egypt is making important steps towards accessing clean and low-cost electricity to drive development and economic prosperity. Scatec Solar and partners are making significant investments and making a long-term commitment to Egypt.”
Image: EBRD, GCF and other partners provide $335m to develop solar projects in Egypt. Photo: Courtesy of The European Bank for Reconstruction and Development.