The European Bank for Reconstruction and Development (EBRD) is considering a loan of up to USD 120 million to support Scatec ASA’s solar and storage project in Nagaa Hammadi, Egypt.
The project involves building a 1-gigawatt (GW) solar power plant paired with a 200-megawatt-hour (MWh) battery storage system.
The loan is currently being reviewed, with a decision expected by December 11, 2024. If approved, this funding will play a key role in boosting Egypt’s renewable energy infrastructure and helping the country integrate advanced storage solutions into its energy mix.
The solar plant will be backed by a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), ensuring a stable market for the electricity generated.
This project is important because it represents one of Egypt’s first large-scale battery installations, which will help manage the intermittent nature of solar energy, ensuring a more reliable power supply.
Scatec ASA, a Norwegian renewable energy company, has been a major player in Egypt’s renewable energy sector.
It plans to manage the full lifecycle of the project, including engineering, procurement, construction, and ongoing operations.
The company is confident that it will finalize land lease agreements and grid connection arrangements soon, with construction set to start in the first half of 2025.
The project fits into Egypt’s broader energy goals, which include increasing the share of renewable energy in the national energy mix to 42% by 2035.
The government has been actively promoting renewable energy through reforms such as reducing electricity subsidies and introducing feed-in tariffs to attract investments.
The Nagaa Hammadi project is expected to create jobs both during construction and operations, supporting local economic growth.
The potential involvement of the EBRD is significant, as it signals strong international support for Egypt’s renewable energy transition.
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