Through the new program, Egypt intends to build up to 2,000MW of utility-scale solar generating capacity in the country.
It is also a part of the country’s effort to generate 20% of its total electricity from renewable sources while reducing dependency on costly hydrocarbon imports by 2020.
In the program, the country looks to develop 40 projects, each with approximately 50MW capacity, with participation from private sector investors.
Majority of the projects are planned to be built on a proposed 1.8GW site near Benban in Upper Egypt. Upon completion it is expected to be the largest solar park in the world.
Besides financing up to $500m, EBRD plans to finance up to $1.5bn in debt and equity from other financiers for the projects.
EBRD expects the total cost of the project in the region to be $4bn.
EBRD Egypt country director Philip ter Woort said: "Egypt is well placed to meet its 2020 aim as it has world-class solar resources and in some places, especially in the Gulf of Suez, great potential for wind power."
The solar projects will be constructed entirely by private firms, EBRD said.
EBRD power and energy director Nandita Parshad said: "Successfully implementing the feed-in tariff program will unlock Egypt’s potential by providing a regulatory framework that can attract private capital.
"But the really exciting element is that once the country has an established model for private investment in renewables, there will be huge potential for widespread, rapid deployment, thanks to Egypt’s fantastic resources and the falling cost of renewable generation."
The new financing is an addition to the a $250m funding package granted by EBRD, along with its partners, in November for private sector clean power generation in Morocco, Egypt, Tunisia and Jordan.
Image: Egypt plans to generate 20% of its total electricity from renewable sources by 2020. Photo: courtesy of European Bank for Reconstruction and Development.
