The European Bank for Reconstruction and Development (EBRD), a London-headquartered international bank, has invested $54 million in Egypt for a clean tech project, media reports said.
It is reported that the funds will be used to construct a MW solar PV project in the country’s Kom Ombo area. As part of the funding, $40 million will be distributed as a debt financing co-financed by EBRD and other entities, while the remaining $14 million will be equity bridge loan. Furthermore, the overall cost of the project is estimated to be $155.4 million.
According to EBRD, the project will boost Egypt’s renewable energy capacity and empower the country’s private sector to invest in the power sector. In addition, the project will increase the percentage of the country’s renewable energy share in the overall energy production sector.
Egypt’s carbon neutrality ambition will also be supported through the project as it will add 200 MW of new renewable energy to the national electricity grid capacity. Furthermore, the project expects to showcase a fresh business model through public tendering practices for the provision of solar energy.
The release of carbon emissions and other forms of pollutants from the power sector is expected to reduce through the project. And more importantly, the project is expected to have a positive impact on the country’s water consumption.
It is reported that clean energy could provide 22 percent of Egypt’s total final energy supply in 2030.